No matter what you sell, your business experiences the pains of steep credit card fees. You may have accepted these fees as just a normal part of staying in business. But what if you didn’t have to put up with these fees anymore? It is possible! You can eliminate your credit card processing fees by implementing a surcharge. This is an additional fee placed exclusively on credit transactions.

If you’ve never heard of a surcharge before, you may wonder: is it legal to charge your customers a fee for using a credit card? The answer isn’t as complicated as it seems.

How to Legally Implement a Surcharge

Call it what it is
There used to be rules about what this extra fee could (and could not) be called. However, in October 2018, a Court of Appeals case made the label for the surcharge entirely up to the business owner. It does not matter how you refer to the surcharge – it will still be legal.

Every credit card network has slightly different policies, and it’s vital that you follow them. You should examine the contract you have with the credit card companies you are using to ensure that you are adhering to all of their rules.

Follow all the Cash Discount Surcharging Regulations
Surcharging became legal at the beginning of 2013. However, in order for this charge to be legal, there are some regulations that you must follow. Because states have different laws about cash discount surcharging, you should also double check that you are following all your local laws before implementing a cash discount surcharge.

Keep Your Fee Reasonable
The extra fee for using a credit card is only be a small percentage of a customer’s bill, so they will not be significantly affected. You must universally apply the fee to all types of credit cards. By applying a surcharge to your merchandise, your listed prices become your cash prices. You cannot apply this same charge to debit card users.

Display the Proper Signage
You must adequately display signage about the surcharge customers will get if they choose to use a credit card. Wholesale Payments Direct will provide you with these signs. Make sure you put them up in a place that’s easy for customers to locate.

Show Charge on All Receipts
There are also rules about how the surcharge shows up on your customers’ receipts. The charge needs to be plainly included. This means the receipt must contain the base price of an item, the surcharge, and the final price. Customers should clearly be able to understand how their total price breaks down. You don’t have to worry about finding the equipment that will print your receipts this way. Wholesale Payments Direct will provide you with the proprietary software and all the equipment you need.

It’s essential that you partner with a company that will help your business follow all of the laws and regulations regarding surcharging. By partnering with Wholesale Payments Direct to implement cash discount surcharging, you won’t have to worry about credit card processing fees anymore. Wholesale Payments Direct will eliminate them for you! If surcharging sounds right for you, contact Wholesale Payments Direct today!