Paystand Blog

Surcharging: A State-by-State Guide

Surcharging, a topic we discussed in our previous blog post, is when a merchant adds a fee to a customer’s credit card transaction. The practice is an attempt to compensate merchants for the credit card processing/interchange fees they have to pay credit card companies when customers use those types of payment rails. However, consumer attitudes towards surcharging varies by demographics. Credit card companies also have policies on surcharging. But with 50 state consumer laws to contend with, the legality of surcharging also varies on a state-by-state basis. To help, we’ve put together an overview of surcharging and its legality across the country.

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Kenzie Earle on August 22, 2017

AR, Surcharging, Alternate Payment Rails

Surcharging 101: Understanding the Basics

For businesses that accept credit cards, processing fees are a constant pain. Varying pricing models, vague regulations and new technology often create unwanted expenses. In fact, 55 percent of America's 27 million small businesses do not accept credit cards. But with credit and debit cards being nearly as common as cash, merchants are starting to pay attention to accepting credit card transactions. Surcharging offers businesses a means of defraying costs associated with credit card acceptance by recovering the higher costs from the customer.  

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Kenzie Earle on August 17, 2017

AR, Surcharging, Strategy