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Credit card surcharge?


chisel

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Is it possible to set a surcharge for various payment methods?

 

ie. If a customer pays by credit card, add 2%, or something?

 

I have to laugh anytime someone wants to do that. Makes me think the company is cheap.

 

This would be a manual process, but if you want to do something like that, i would recommend giving a discount or actually account credit to users that pay in cash. As in a check or whatever.

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  • 1 year later...

Another Aussie here....

 

In addition to the credit card surcharge, I'd like to be able to add a fee for payment by cheque. We are hit by very high bank fees every time we deposit a cheque, so we'd like to encourage customers to use other methods like direct deposit or credit card. Without the cheque payment fee, we are losing money on very low margin items.

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Just do what the gas stations did. Back in the 1970's they used to charge a surcharge on credit cards. Then after the credit card companies took them to court and spent years and millions of dollars, they got a judgment forcing the gas stations to not charge that surcharge.

 

So, two days later, all the gas stations started giving "cash discounts" for cash customers instead of credit card surcharges and laughed their asses off at the credit card companies.

 

Nothing says you can't give cash discounts.

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When your clients bounce checks, pass those fees along to your clients. That's just a cost of doing business; and if your clients don't bounce checks, then they won't have to pay these additional fees.

 

Nonlocal clients are also charged a USD$2 handling fee for any mailed-in payment. Mailed-in payments mean that someone has to open the envelopes, endorse any checks, go to the bank, and deposit the checks/cash/money orders. That, combined with passing bounced-check charges along to the clients (and disallowing checks after three bounced checks in a two-year period), means that my business doesn't lose money, yet clients are allowed to pay any way they wish.

 

You will need to spell these measures out in your TOS, and depending on local laws there may be certain clients who can successfully challenge these fees. But in most cases, they're utterly reasonable charges and will not be disputed.

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