While more and more consumers choose to pay with a card, processing credit cards isn't free. In fact, it can be downright costly, depending on who you're processing with and how much you're processing each day.
Every time a customer makes a purchase using a credit card, you have to pay a fee to process that card. But by using the Surcharge Program from Electronic Merchant Systems (EMS), you can keep more of your hard-earned dollars in your pocket.
Another way you can keep more of your money is by doing a free rate review with EMS. 95% of business owners who did a rate review with them saved money. Call (216) 230-3506 to speak with one of their payment experts to see if you've been paying too much to accept credit cards.
Keep reading to see how implementing a surcharge program can help you.
Table of Contents
What is A Surcharge Program?
A surcharge is a fee charged to a customer for the convenience of paying with a credit card. Businesses apply a surcharge to each transaction to offset the expenses of accepting credit cards.
A surcharge does not apply to debit cards, cash payments, or digital payments. It is only applicable to credit card payments whenever credit card processing fees apply.
In general, the following is required for effective surcharge implementation:
- Set limits — Surcharges should not exceed 4% of the transaction value.
- Full disclosure – A notice must be placed at the point of sale. Surcharges should not be misleading or unexpected to the client.
- Accurate records — The surcharge should be recorded on the receipt as a distinct line item.
- Notice — If you intend to surcharge transactions in the future, inform your credit card processor and the card associations in writing.
- Equal treatment – You cannot add a fee depending on the consumer or card brand. It's either everything or nothing.
It is important to note that surcharging is not permissible in every state. Currently, there are a few states that do not allow it or have restrictions on it. Those states are:
This is why it is important to partner with a payment processor that has the experience and knowledge to help you implement a surcharge program legally.
What Are The Benefits Of A Surcharge Program?
There are three clear-cut ways surcharge programs could potentially benefit your business:
Surcharges Offer An Easy Revenue Boost
Surcharging allows merchants to take back the revenue lost to credit card networks.
Let's look at an example to understand the significance of the savings you could be missing out on.
Your business collects most of its revenue in two ways: cash and credit card payments. On average, your business pays a 4% processing rate for credit card purchases.
If you have $300,000 worth of credit card payments, you're losing $12,000 of that to fees.
Covering those costs with a small 4% surcharge puts over $10,000 back in your pocket each year.
Surcharges Lower Operating Costs
Surcharging programs are essentially "free credit card processing" programs because they all but eliminate the expense of accepting credit cards.
Beyond daily savings, surcharges can help businesses that are struggling to stay afloat.
Adding a small, additional cost to credit transactions can help small businesses respond to a sudden lack of revenue without increasing their pricing and upsetting customers.
Surcharges Strengthen Businesses With Low Average Transaction Values
Some industries rely on low-price, high-volume purchases or small average order values, like restaurants and bars, convenience stores, and some retailers.
It can be difficult to make a profit on credit card transactions.
Adding these fees to customer transactions helps relieve financial pressure so businesses can focus on increasing sales.
As you can see, there are many reasons a surcharge program could make sense for your business.
But how complicated is it to set up a surcharge program?
How Do You Set Up A Surcharge Program?
Setting up your new Surcharge Program is simple. EMS will program the credit card terminal to automatically apply a surcharge to all purchases made with a credit card.
Then, you simply have to post signage notifying your customers of the charge, and you're ready to save!
The EMS Surcharge Program includes:
- Visa, Mastercard, Discover, and American Express surcharge registration on your behalf
- Signage giving customers the required surcharge notice
- A point of sale terminal or system with surcharge programming
- 24/7/365 live customer support
With Electronic Merchant Systems Surcharge Program, they make the setup simple and help you put more money in your pocket.
Save More Money With The EMS Surcharge Program
The Cleveland Browns know the importance of gaining an edge to succeed in the competitive world of football; likewise, a Surcharge Program from EMS can help businesses get an advantage that allows them to increase profits and grow their business.
With EMS' Surcharge Program, businesses can enjoy competitive rates, exceptional customer support, and other benefits that help streamline operations and increase profitability.
Whether you're a retail store or a restaurant, EMS' Surcharge Program is a cost-effective solution to help you save money and improve your bottom line.
If you're ready to put some of that hard-earned money back in your pocket, call (216) 230-3506 or fill out the form below to get started with Electronic Merchant Systems' Surcharge Program Today!