Surcharge Program

With a surcharge program, merchants charge an additional fee on credit card transactions only, which helps them offset the fees associated with processing those transactions.

While this is the preferred program by the major card brands, it is not yet permitted by all 50 states. The states that currently do not allow surcharging are Colorado, Connecticut, Kansas, Maine, Massachusetts, and Oklahoma.

If a merchant conducts business in multiple states, they can still surcharge, but only in states where it is legal.

You may be wondering, why would a merchant choose that program if it's just going to cost their customers more money?

That's a valid question, and of course, merchants take their customers' wallets into account. However, the industry consensus is that merchants who complete just one month of the program generally stick with it.

This is because the amount of money a merchant can save on their processing fees by surcharging transactions outweighs the handful of customers who may balk at the fee.

When you explain the benefits and show the program's value, it's an easy sell for small to mid-sized retail stores, restaurants, service businesses, and more.