Charging customers service fee for credit card processing

[graygables]

Most businesses cover their credit card fees by raising prices to all consumers. Our convenience store chain paid the credit card companies over six million dollars last year in fees so people could use credit or debit cards.

Yep. I pass the cost on via my pricing strategies. According to my contract w/ the CC companies (and this includes debit cards, BTW), I'm not permitted to tack on fees or require a minimum purchase. What that means is, however, is someone wanting to charge $1 item actually COSTS me money and there is no profit. As such, I'll just give them the item or I'll have to raise prices. I wish people would think about that before charging a pack of gum or really any small item...the only company that just made any profit was the BANK with their fees.

 

[tasha99]

I see more and more companies doing this nowadays. It used to be that people got a "discount" for paying cash--not sure it's any different now, except semantically. The customer pays for everything. Even when a business owner doesn't charge for a credit card or discount for cash, they price their merchandise so that credit card fees are covered.

 

[Allison]

I see more and more companies doing this nowadays. It used to be that people got a "discount" for paying cash--not sure it's any different now, except semantically. The customer pays for everything. Even when a business owner doesn't charge for a credit card or discount for cash, they price their merchandise so that credit card fees are covered.

Sure they do. They have to charge enough to cover all their costs and make a profit. That's the point of being in business. Credit card processing fees are the same as any other cost such as rent and utilities.

Credit card processing fees cost the entity I worked for hundreds of thousands of dollars. Those costs had to be considered in our pricing structure.