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Credit Card Surcharge? (Read 350 times)
 
Don Stephan
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Credit Card Surcharge?
Aug 5th, 2016 at 8:12am
 
In the past, credit card processing service agreements included a covenant that a surcharge could not be added to an invoice when the customer paid with a credit card.  Our county treasurer I notice accepts Discover cards for paying property taxes and includes a service charge.  If memory serves it seems like recently I saw another instance (not sure if government, retail, . . .) that added a service charge for processing fees when an invoice was paid with a credit card.

Is anyone connected to the banking or credit card processing industry and familiar with this issue?

Now I simply offer a 3% discount before sales tax for payments via cash and check.  It would be somewhat simpler to add a surcharge for credit card payments.
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Ron Sardo
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Re: Credit Card Surcharge?
Reply #1 - Aug 5th, 2016 at 11:24am
 
Its common these days to add a surcharge for using a credit card.

Hiding it in your price (include the surcharge before the price is shown) or adding it as a surcharge when the sale is rung up is really up to you.

Some people will balk at $100 plus $3 surcharge while others won't flinch.

On the other hand if your price starts out as $103.00 and someone balks at it its most likely they would also balk at $100 too.
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Bert Delisle
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Re: Credit Card Surcharge?
Reply #2 - Aug 5th, 2016 at 9:29pm
 
What a world we live in, use of plastic for transactions has dramatically increased the number of items sold.
Now we have the option and "convenience" of making a sale that otherwise wouldn't happen in a cash only market.
As a marketer I don't expect the buyer to shoulder the cost of my convenience. I have had folks say they choose to pay cash because they know that the cash stays with me the artist, but they also appreciate the convenience of sometimes using plastic.
In my opinion, the transaction fee is a cost of doing business. As such it is a deductable expense against the business income for tax purposes.
Thats my $0.02 worth.
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Ron Sardo
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Re: Credit Card Surcharge?
Reply #3 - Aug 6th, 2016 at 7:34am
 
Bert Delisle wrote on Aug 5th, 2016 at 9:29pm:
In my opinion, the transaction fee is a cost of doing business. As such it is a deductible expense against the business income for tax purposes.

Absolutely, and all business expenses should be figured into the cost of a product.
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Steve Doerr
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Re: Credit Card Surcharge?
Reply #4 - Aug 6th, 2016 at 12:13pm
 
I agree with Bert.  It's just  part of operating a business.

I get really discussed at the governmental agencies and the companies that sell event tickets for a business when they tack on a service charge.  I've gotten to the point, especially with the governments, that I'll just go ahead write a check and pay postage to avoid having to pay a service charge.  (I also remember when the envelopes that you got with your bills included pre-paid postage.) I guess I'm just getting grumpy in my old age.
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