![]() In fact, the fee is usually capped at 1.3% to 3.5%, so it may not cover your processing costs in full. It’s worth noting that you can never profit from this fee, meaning that it cannot exceed the actual amount you’ll pay on the backend. Your sign also needs to specify the amount of the surcharge fee. In general, you must post notifications at the point of sale letting customers know that they’re going to pay a surcharge. In all other states, you can add a surcharge, but you need to make sure you follow the letters of the law and the rules set forth by Visa, Mastercard, American Express, and Discover. Surcharges are effective at reducing expenses by passing them right along to the consumer, but credit card surcharges are not legal in all states.Īfter recent court rulings in the surcharge vs convenience fee debate, there are ten states and one jurisdiction where surcharging still isn’t allowed at all: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas, and Puerto Rico. Many industries use surcharge fees to cover increased expenses, like the cost of fuel in airline travel or even costs associated with adhering to new regulations. Surcharges are a staple in business accounting. ![]() ![]() In an attempt to recoup these costs, many businesses want to consider a surcharge vs convenience fee–but it’s important to know the difference and how they can impact your business. Over time, these processing fees start to add up. For the average transaction, a small business could pay as much as 2.5% in addition to a fixed fee of 5 to 10 cents per sale.
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