Reduce Processing Costs With Surcharging

Implementing compliance-focused programs not only saves money but also ensures adherence to regulatory requirements, maximizing operational efficiency.

What is Surcharging?

Surcharging refers to the practice of adding an extra fee to a transaction, typically encountered in credit card transactions, to cover the costs associated with processing payments. Essentially, it shifts the burden of processing fees from the merchant to the customer, allowing businesses to recoup some of the expenses incurred in facilitating electronic payments. This fee can either be a percentage of the transaction amount or a flat fee, depending on the merchant's preference and the regulations governing surcharging in their jurisdiction.

When done properly, surcharging can save businesses upwards of 95%, or even more, which can equate to thousands, or even tens of thousands of dollars, in savings.

However, surcharging is not universally permitted. Many countries and states have laws and regulations governing its use, and in certain areas, it may be prohibited entirely or subject to strict conditions. Therefore, businesses considering surcharging must thoroughly research and adhere to the legal framework in their region.

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What Does Cash Discount And Surcharging Processing Mean For Your Business.

EZ2 Payment offers programs for business owners to help save you money on processing fees. One of the most popular programs for helping businesses cut down on their processing costs are cash discount and surcharging programs. There’s typically a fee for using a credit card, and the ability to offer a discount for cash payments has actually helped many business owners save more money than they initially thought.

Cash Discount

What is a cash discount? A cash discount is a great way for you and your customers to save money. When you list your prices, only state the credit card price, then offer a discount to people who pay with cash.

Surcharging Fees

What are surcharging fees? If your business posts “cash only” prices, then the surcharging fee is placed on orders that are paid for by credit card.



Lower card processing fees
Debit and prepaid cards have no added fees for customers
Customers may refuse to pay
Customers may feel they are being penalized for using credit card
Has no card processing fees
Reduced chargebacks
Customers tend to spend more when using credit cards
Merchants may spend more time and resources taking deposits to the bank

Things You Should Know

The most important thing to remember is that you can only apply surcharges to credit card transactions and the cash discount is only a discount on the price that a cardholder would pay.
Credit card surcharges are only legal in certain states.
Credit card surcharges must never exceed 4 % of the sale.
Cash discounts are 100 % legal everywhere in the country. (As long as the rules have been followed)
If your business wants to start implementing surcharges then you must give your credit card processing provider at least 30 days notice.
In order to implement credit card surcharges you must place a notice on the business's front door, all cash registers, and receipts. No surprising your customers with an extra fee!
It goes against the rules to add a fee to the original price, then later give a discount to cash paying customers.
Save Money Today with Surcharging!

We Accept All Forms of Electronic Payments

There are so many more ways to pay, you can take them all! EZ2 Payment accepts all the major Card Brands, including Visa, Mastercard, American Express, and Discover. Its cutting-edge technology also allows NFC payments from digital wallets like Apple Pay and Google Pay.

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