Why You Shouldn't Pass Credit Card Fees Onto Your Customers
Please, do NOT charge your clients and customers a credit card surcharge.
I know credit card fees add up and eat into your profits, but passing these charges to someone else is not the way.
Watch the Reel!
Legality
For starters, it’s illegal in some states and circumstances.
Even if you’re not located in one of these states, these laws apply if you sell online to customers from those states.
Turn Off Customers
Passing on your credit card fee to your clients and customers reflects poorly on your business. And it irritates your customers.
There are people who won’t shop at businesses who charge credit card fees.
Advantageous to Encourage Credit Card Payments (Without a Fee)
If you offer events, classes, or services, you want people to prepay. This guarantees that they’ll show up.
But if you charge a credit card fee for prepaying online, they’re likely to opt to pay cash in person. Giving them an easy out to not show up.
Unfair When Credit Card Payments Are Required
It’s also unfair to charge a fee when people have to pay using a credit card, whether they’re shopping on your website or you don’t accept cash.
Instead, consider these options:
💰 Set a minimum for credit card sales.
💰 Offer a cash incentive (discount, extra item).
Charging a credit card processing fee, surcharge, or convenience fee will irritate your customers, turn away business, and make you look cheap or greedy.
And let’s be real. A 3% credit card fee would cost you $30 for every $1,000. Yeah it’s annoying, but it’s a cost of doing business.
Ok, If you insist on charging credit card fees, approach it this way:
—
Just getting started in business and looking for a roadmap? Check out my free Begin Your Business online course. We’ll cover everything from pricing to forming an LLC, assembling your team to getting your first clients, and everything in between.
Been around the business block and looking to grow? My Self-Employed School online course provides a deep dive on topics including website SEO and design, e-newsletters, social media, public relations, and more. It all culminates in creating an easy and effective marketing strategy for your business.
Hey there! I’m Meg:
LOVER OF CATS, ROLLER SKATING, AND VW BUGS
I also love business and share all kinds of tips and resources to help you grow yours.
Ready to commit to becoming more business savvy and being able to work for yourself? Subscribe to my email newsletter. ;)
More Business Resources
