12/03/2025
We as a small business decided to not charge our customers with this fee awhile back. We love our customers. I just do not understand any benefit for a business to do it....large or small.
Here are some facts about the charge (pros & cons). I didn't know the debit card one even existed. so be careful out there :)
Should Your Business Consider Credit Card Surcharging?
Nobody likes to pay credit card processing fees – we get it! We talk to customers in various industries every day, and we hear several comments over and over again: confusing pricing and hidden fees are the greatest pain points most business owners struggle with. It can be tempting to pass the cost of your credit card processing fees on to your customers – but is that a good idea? Let’s look at the main pros and cons of credit card surcharging.
Pro: Bigger Margins
The obvious benefit to credit card surcharging is that you can pass your credit card processing costs along to your customers – sounds great, right? What would you be able to do with the money you currently spend on credit card processing fees every month? Many business owners see this as a great opportunity to keep a little more money in their pockets, especially when margins are tight.
Con: Can’t Surcharge Debit Cards
If you process most of your transactions via debit card, surcharging is not the answer for you. Even if you’re running debit cards “as credit,” you still can’t apply a surcharge. It’s important to take a look at the relative volumes you process in credit and debit cards before you decide if credit card surcharging is right for you. Additionally, if you do decide to surcharge, it’s critical that you work with a processor who can automatically detect a debit card and remove the surcharge fee. Failing to comply with this rule could result in a fine from Visa and MasterCard ranging from $5,000 – $25,000.
Con: Might Be Illegal
Depending on where you live, surcharging may not be an option for your business. Currently, there are two states that ban or have restrictions on credit card surcharging: Connecticut and Massachusetts. If you do business in these states you will not be able to take advantage of credit card surcharging.
Con: Customer Backlash
Some customers won’t take kindly to having to pay more to use a credit card – and in today’s internet age, you can bet they’ll let you and everyone else know about it. You may lose customers, even ones who have been loyal for many years if you suddenly start penalizing them for using their preferred method of payment. Prior to initiating surcharging, take some time to talk to your customers and find out what the overall impact will be. You may end up losing more than you gain.