Surcharging

Surcharging is a way for businesses to pass on the cost of credit card processing to customers who use credit cards. When a customer pays with a credit card, the business adds a small fee to their total to cover the processing cost. This means the business doesn’t have to absorb the fees, helping to save money.

How Does Surcharging Work?

When a customer chooses to pay with a credit card, a surcharge is added to their bill. This extra charge helps cover the processing fees that come with credit card payments. The amount added is typically small but enough to offset the costs for the business.

With a cash discount program, the business offers a lower price when customers pay with cash or debit. The advertised price is the “cash” price, and if customers pay with a credit card, they pay a little more to cover the processing fees.

Benefits of Surcharging and Cash Discount for Businesses

One of the biggest benefits of surcharging is saving money. By passing credit card fees to customers, businesses no longer have to pay those fees out of pocket. This can add up to significant savings over time, especially for businesses with lots of credit card transactions.

Offering surcharging or a cash discount gives your customers more choices. They can decide whether to pay with cash and get a discount or pay with a credit card and cover the fees. It’s a flexible option that can make customers happy.

When you pass processing fees to credit card users, your profit margins stay protected. You don’t have to worry about the extra costs eating into your profits. This way, your business stays more profitable, even with rising credit card use.

Is Surcharging Legal?

Legal Considerations

Surcharging is legal in most places, but it’s important to understand the rules in your state or region. Some states have specific laws about how you can surcharge, while others don’t allow it at all. You’ll want to make sure you’re following local laws to avoid any issues.

Compliance with Regulations

There are also regulations around how you implement surcharging. For example, businesses must clearly tell customers about the surcharge before they pay. At Discount Payments, we help make sure your business stays fully compliant with all legal and regulatory requirements.

How to Implement Surcharging in Your Business

Point of Sale Integration
Implementing surcharging is easy with the right tools. Most modern Point of Sale (POS) systems can add surcharges automatically when customers pay with a credit card. This makes it simple for businesses to apply surcharges without any manual work. At Discount Payments, we help you set up your POS system to handle surcharges smoothly.

Signage and Disclosure Requirements
To stay compliant with the law, businesses must clearly notify customers about surcharges before they complete their purchase. This can be done with signage at the checkout or on the payment page for online transactions. Being upfront about the surcharge helps avoid confusion and ensures a smooth customer experience.

Why Choose Discount Payments for Surcharging?

Seamless Integration
At Discount Payments, we make it easy to add surcharging to your existing payment system. Our tools work with most POS systems, allowing you to quickly start saving money without any complicated setup.

Transparent Pricing
We believe in clear, straightforward pricing. With Discount Payments, there are no hidden fees or surprise charges. You’ll know exactly how much you’re saving and how surcharging will work for your business.

Support and Compliance
Our team is here to help every step of the way. We offer full support to ensure your surcharging program runs smoothly and stays compliant with all regulations. You can count on us to guide you through the process.

Frequently Asked Questions About Surcharging

Can I surcharge all credit cards?

No, surcharging is allowed only on credit card transactions, not on debit cards. You must ensure that your business applies surcharges only to credit card payments to stay compliant with regulations.

You must clearly let customers know about any surcharges before they complete their purchase. This can be done through signs at the point of sale in-store or on the payment page for online transactions. Proper signage is required by law.

Yes, there are limits. The surcharge cannot be more than the cost of processing the credit card, and there are caps set by credit card companies. Typically, the surcharge is limited to around 4%. At Discount Payments, we’ll help ensure your surcharge stays within these limits.

Rates

We offer simple rate plans with no hidden fees or extras of any kind. Just simple cost-plus pricing that is as transparent as it is good for your business. 

As Low As

0.10%

Above Interchange

  • Ideal for retail stores, restaurants, and local service providers

  • No hidden fees and ultra transparent pricing structure

  • Secure and reliable point-of-sale solutions

  • Competitive transaction fees tailored for in-person sales

As Low As

0.30%

Above Interchange

  • Perfect for online retailers, subscription services, and remote sales

  • Low transaction fees for online and phone payments

  • Secure encryption and fraud prevention measures

  • Easy integration with your existing e-commerce platform

As Low As

0.50%

Above Interchange

  • Best suited for industries such as travel, gaming, and CBD sales

  • Specialized rates designed for high-risk industries

  • Enhanced fraud protection and chargeback management

  • Tailored solutions for unique business needs

Get Started Today

Ready to simplify your payment processing and enhance your business operations? Our tailored solutions are designed to save you time, boost customer satisfaction, and protect your business from security risks. Whether you run a small local shop or a large enterprise, we have the right tools for you.
 

What Our Clients Say

“Convenient”

“As a restaurant owner and operator I’ve seen it all but these guys had the most convenient payment solutions of all time and no one could even come close to their rates. Thanks DP!”

Justin T. – J’s Eatery

“Great Rates”

“The team at DP are the absolute best! They got me the best rate I’ve ever seen in 30 years of doing business and they made making payments for my customers a breeze!”

 

Alan H. – UT Window Experts

“Phenomenal”

“Started a new business online and these guys helped get me setup to take payments in hours! It was amazing and the rates and service are phenomenal!”

Peggy C. – Grandin

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