The Impact of Surcharging on Consumer Behavior and Business Revenue

Surcharging is a pricing method that passes credit card processing fees to the customer

who chooses to pay with a credit card. Instead of the business paying all card fees, the

customer covers those costs through a small fee added at checkout. This helps

businesses lower expenses while still accepting cards as a payment option.

If you want to learn how to use surcharging to lower or remove processing fees, call

Elite Payment Group at 321 244 3031 or email yaritzi@elitepaymentgroup.com.

The Impact of Surcharging on Consumer Behavior and Business Revenue

• Surcharging adds a fee to credit card transactions to cover processing costs.

• Debit cards and prepaid cards cannot be surcharged under current regulations.

• Signage and transparent communication are required.

• Surcharging is legal in most states but must follow specific rules.

• The business reduces or removes card processing fees by passing them to the

customer.

Why Businesses Consider Surcharging

Accepting credit cards can be expensive due to interchange and processing fees.

Surcharging helps offset those expenses, allowing businesses to keep more of their

revenue.

Benefits

• Reduces or eliminates credit card processing fees for the business.

• Encourages customers to pay with debit or cash, which keeps prices lower.

• Makes pricing more transparent by showing the real cost of card payments.

• Allows businesses to continue accepting credit cards without absorbing the full cost.

Surcharging Rules and Requirements

Because surcharging impacts the price customers pay, it must follow specific

regulations. Businesses must clearly disclose the surcharge and apply it only to eligible

card types.

Compliance Requirements

• A surcharge can only be added to credit card transactions.

• A surcharge cannot exceed the cost of processing or legal percentage limits.

• The surcharge must be disclosed before the customer pays.

• Signage must explain the surcharge at entrances and checkout areas.

• Receipts must show the surcharge as a separate line item.

• Debit and prepaid cards cannot be surcharged.

Surcharging vs. Dual Pricing

Both pricing methods help reduce card fees, but they work differently.

Differences

• Surcharging adds a fee on credit card transactions.

• Dual pricing offers a discount for cash transactions and includes the fees in the card

price.

• Surcharging requires federal and state compliance rules specific to the surcharge

amount.

• Dual pricing typically avoids percentage limits because it uses discount pricing.

If you are unsure which option is better for your business, Elite Payment Group can

compare both for you.

Steps to Start a Surcharging Program

Before launching a surcharge program, a business should understand its audience,

pricing strategy, and equipment needs.

Getting Started

• Review your current processing costs and customer payment habits.

• Confirm state rules to make sure surcharging is allowed in your area.

• Update signage to clearly explain the surcharge.

• Ensure your POS system can apply surcharges automatically.

• Train employees to explain the surcharge properly if asked.

• Make sure the surcharge does not exceed legal limits.

How Elite Payment Group Helps With Surcharging

Elite Payment Group provides all the tools and guidance needed to implement a

compliant surcharging program.

Our Support Includes

• Equipment and POS systems that automatically apply surcharges correctly.

• Clear instructions on signage, receipts, and customer communication.

• Continued monitoring and support to keep your business compliant.

• A customized cost comparison to show how much you could save.

Common Questions About Surcharging

Is surcharging legal?

Yes, surcharging is legal in most states, but it must follow specific rules and disclosures.

We can help determine what rules must be met for your state.

Can I surcharge debit cards?

No. Only credit cards can be surcharged under current regulations.

Will customers react negatively to surcharging?

Some customers may choose cash or debit to avoid the credit card fee, which is the

goal. With clear signage, customers understand the fee and appreciate having options.

How much can I surcharge?

The surcharge cannot exceed the processing cost or regulated maximums. Elite

Payment Group ensures your business follows these limits.

Ready to Reduce Your Processing Costs

Surcharging can help you stop absorbing processing fees, while still offering credit card

acceptance to your customers. Elite Payment Group makes sure it is implemented

simply and compliantly.

Call Elite Payment Group at 321 244 3031 or email yaritzi@elitepaymentgroup.com to

get started or request a free cost comparison.