Is Surcharging the Right Move for Your Business?
The newest trend in merchant processing is surcharging and cash discounting. Over the next few months, we will be discussing the difference between the two. We will also discuss what a business owner needs to be cognizant of if proceeding in either direction. The bottom line is: you have to do what is right for your business. We always offer that piece of advice first, and our next paragraph discusses why.
Surcharging and cash discounting alleviates some or all of the cost of accepting credit cards. First things first, you have to make sure that the payment options you are offering to your customers are compliant. Also, you need to decide if this is the right route for your business. If you have customers that might become enraged with an added fee when using a credit card, surcharging will not be the best option.
In a world where social media reviews reign supreme, businesses cannot afford to have a bad review. Surcharging does provide the potential for a customer to get angry. However, the cases where this is seen in its most severe forms are where it has not been advertised that a surcharge will occur. It is important to let your customers know before the bill comes that there will be an added fee with a credit card purchase. This way it will alleviate naivety.
How do you know if surcharging is the right option for you? Analyze your current merchant processing statement. See how much money is being taken out and weigh that against your customers. Surcharging is an opportunity to save money on merchant processing. The important question to ask yourself, however, is that if it is the wise choice for your business.