Can you pass credit card fees to consumers?

Yes, it is possible to pass credit card fees to consumers. In the United States, merchants have the right to charge customers a fee for using a credit card as a form of payment, as long as the fee is clearly disclosed to the customer and does not exceed the cost of processing the credit card.

However, it is important to note that there are certain states and industries where surcharging is prohibited, so it is important to be familiar with the laws in your area before deciding to pass on the fees to customers.

NOTE – Surcharging is different than offering a cash discount. Cash discount is legal in all 50 states.

Additionally, it is also important to consider the potential impact on customer satisfaction and the overall reputation of your business. Many business owners are making the tough choice, but consumers seem to be understanding and on their next visit they just bring cash to pay a lower price for your product/service.

At the end of the day, you as the business owner have to do what’s best for your business. Really weigh out the pros and cons. From a financial standpoint, offering a cash discount is the best option. Costs are increasing all around us and unfortunately it’s forcing some businesses to close their doors.

Consider this… either your customer pays a little extra fee or you pay a lot of extra fees. Believe in yourself! You’ve worked hard to provide an excellent product/service and your customers will remain loyal.

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