Why You Shouldn't Pass Credit Card Fees Onto Your Customers

EntrepreneurialismWebsite

Jun 8

Written By Hey there! I'm Meg:

Please, do NOT charge your clients and customers a credit card surcharge.

I know credit card fees add up and eat into your profits, but passing these charges to someone else is not the way.

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Legality

For starters, it’s illegal in some states and circumstances.

Even if you’re not located in one of these states, these laws apply if you sell online to customers from those states.

Turn Off Customers

Passing on your credit card fee to your clients and customers reflects poorly on your business. And it irritates your customers.

There are people who won’t shop at businesses who charge credit card fees.

Advantageous to Encourage Credit Card Payments (Without a Fee)

If you offer events, classes, or services, you want people to prepay. This guarantees that they’ll show up.

But if you charge a credit card fee for prepaying online, they’re likely to opt to pay cash in person. Giving them an easy out to not show up.

Unfair When Credit Card Payments Are Required

It’s also unfair to charge a fee when people have to pay using a credit card, whether they’re shopping on your website or you don’t accept cash.

Instead, consider these options:

💰 Set a minimum for credit card sales.
💰 Offer a cash incentive (discount, extra item).

Charging a credit card processing fee, surcharge, or convenience fee will irritate your customers, turn away business, and make you look cheap or greedy.

And let’s be real. A 3% credit card fee would cost you $30 for every $1,000. Yeah it’s annoying, but it’s a cost of doing business.

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