As credit card processing will get costlier, a burning questions on the thoughts of many business homeowners is, “can I go credit card processing charges on to my prospects, and in that case, how?” In brief, the reply is sure; you’ll be able to cost prospects a charge for paying with a credit card, however the situation is way extra complicated than that.

For retailers, the power to just accept credit cards comes with many advantages with the one real draw back being the price of doing so. It is attainable to remove this price by passing it to prospects, however originators like VISA, MasterCard, American Specific and Uncover don’t desire retailers to cost prospects a charge to pay with a credit card. The reason being fairly apparent. A charge would deter folks from utilizing their credit card which might finally trigger originators to lose cash.

This is what the originators must say about passing credit card processing charges to prospects.

VISA states that “you might not impose any surcharges on VISA transactions. Chances are you’ll, nevertheless, supply a reduction for money or one other type of payment (e.g., proprietary card or present certificates) supplied that the supply is clearly disclosed to prospects and the money value is introduced as a reduction from the usual value charged for all different types of payment”1

MasterCard states that “A Service provider should circuitously or not directly require any Cardholder to pay a surcharge or any a part of any Service provider low cost or any contemporaneous finance cost in reference to a Transaction. A Service provider could present a reduction to its prospects for money funds.”2

Uncover states that “Chances are you’ll assess a surcharge on a Card Sale performed utilizing a Credit Card supplied that (i) the quantity of the surcharge could not exceed the Service provider Payment payable by you to us for the Card Sale, and (ii) you assess surcharges on card gross sales performed utilizing different credit cards accepted by you.” 신용카드현금3

American Specific states that “You should not settle for the Card for prices or charges over the conventional value of your items or services (plus relevant taxes) or Fees that Cardmembers haven’t particularly authorized.”4

Each originator aside from Uncover forbids surcharging credit card gross sales, nevertheless, as MasterCard so clearly states, “A Service provider could present a reduction to its prospects for money funds.” This assertion holds the key to passing credit card processing charges on to prospects. The trick is not charging prospects extra for utilizing a credit card; it is charging them much less for utilizing money.

As a way to cost prospects for credit card processing charges it’s essential to create a twin pricing model. To perform this, increase all costs to offset processing charges after which supply a reduction on money purchases that is equal to the worth improve.

The catch is that the money value should be introduced as a reduction to the true value. Which means value tags, signage and ads should show the upper (credit card) value first after which show the decrease (money low cost) value as a reduction. For instance, many fuel stations supply a money low cost however they put up the upper (credit card) value on their roadside signage