How Surcharging Can Help Struggling Businesses

Businesses may struggle for any number of reasons, especially these days. But as credit card surcharging surges in popularity, it represents a timely innovation and potential lifeline to allow businesses to regain control of their finances and get back on solid ground.

Surcharging Made Easy

Surcharging is now legal is at least 46 states across America. At first, some businesses hesitated to try it because surcharging requires strict compliance with a specific set of rather complicated rules. But that problem has now been solved, thanks to groundbreaking technology that automatically and instantly processes card transactions while ensuring full compliance. All a business has to do is use a simple plug-in, which requires no technical expertise or expensive upgrades. Once the plug-in is installed, the credit card terminal software handles compliance flawlessly, at the point of sale. Businesses can gain significant financial relief, because surcharging eliminates the steep fees they would normally pay credit card companies like MasterCard and Visa. Those fees typically range from two percent all the way up to as much as four percent of the transaction amount. Getting rid of those fees means the business can keep all of that revenue, which can have a profound positive impact on the bottom line.

Accept Credit Cards and Reject Swipe Fees

In the past, the only way businesses could avoid “swipe” fees was to stop accepting credit cards and risk losing all those valuable customers who pay with plastic. During the COVID-19 pandemic, almost everyone prefers to pay with a credit card, because it can be done with less contact to maintain social distancing. More people are paying online, too, which can be harder to do without a credit card. Many people also use credit cards as a way to pay for their purchases over time and/or postpone full repayment until their financial situation improves. But surcharging lets a business ditch the fees while still accepting credit cards and retaining or attracting customers. Customers may choose to use a debit card to avoid paying a surcharge fee. But even in that case, the swipe fee is considerably less than a credit card swipe fee. In those ways, surcharging gives customers financial flexibility while relieving businesses of a major source of financial burden.

How to Set Up an Automated Surcharging System

All that’s necessary is to find a reliable payment processing partner who will provide the requisite plug-in technology and guarantee compliance. They will even provide businesses with signage in accordance with surcharging laws to facilitate transparency and inform customers of their options. It’s one of the easiest ways for business, even those hit hardest by the pandemic, to save money. As Forbes Magazine pointed out in a recent article, surcharging can be immensely helpful for any business, particularly those that deal in high-dollar credit card transactions. That includes building contractors, insurance companies, accountants, attorneys, healthcare providers, educational institutions, manufacturing companies, and government agencies. Surcharging can save so much that it has the potential to make the difference between running in the red or being profitable, especially in these uncertain economic times.