New Credit Card Surcharge Rules Mean Big Changes for Small Businesses

New Credit Card Surcharge Rules Mean Big Changes for Small Businesses

For years, merchants have been contractually barred from adding a surcharge for credit and debit card customers, even though they must pay a fee for these purchases themselves.

While credit card processing fees may seem insignificant, accounting for a mere 3-4% of the sale, the addition of a per-transaction fee up to $0.20 can add up quickly, especially for merchants who make a lot of smaller sales.

A new settlement brought by retailers around the United States against banks issuing cards has now given merchants the right to pass on a surcharge to customers paying with plastic, as well as the ability to set a minimum purchase amount to cover overhead.

Still, this leaves a lot of questions and it may not be the huge victory it seems for small business owners. Not all businesses may legally be allowed to add a surcharge, despite the ruling, and it may not be in your best interest to do so.

http://www.business2community.com/finance/new-credit-card-surcharge-rules-mean-big-changes-for-small-businesses-0526732