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A Step-by-Step Guide to Setting Up Credit Card Surcharging for Your Business with CardChamp

If you're a business owner, you know how important it is to cut costs and increase profits.

One way to do this is through surcharging, a method of passing on credit card fees to customers instead of paying them yourself.

Credit card surcharging can help you save thousands of dollars each year, and it only takes a few minutes to set up.

This article will provide a step-by-step guide to properly setting up a credit card surcharge program for your business with CardChamp.

Customer entering pin number into machine at counter in cafe

Step 1: Check the Availability of Credit Card Surcharging in Your State

Before you start surcharging your customers, it's important to make sure it's available in your state. Credit card surcharging is legal in most states, although some have laws against it. You should also check with the card brands (Visa, Mastercard, etc.) to see if they have any specific requirements or restrictions for surcharging. If you need help with this step, a CardChamp fee elimination advisor can help you navigate the laws in your local area.

Step 2: Notify Your Customers

If credit card surcharging is available in your state, the next step is to notify your customers that you'll be adding a surcharge to their transactions. This can be done through signs at your point of sale or through a notice on your website. You must also make sure that your surcharge amount does not exceed the cost of acceptance for the card, which is typically around 3%.

Step 3: Choose a Credit Card Surcharging Provider

There are many surcharging providers out there, and it's important to choose one that's reliable and trustworthy. Providers such as CardChamp offer competitive rates and good customer service. Work with a provider that's transparent about their fees and the process of surcharging.

Step 4: Set Up Your Credit Card Surcharge System

Once you've chosen a surcharging provider, it's time to set up your surcharge system. This can typically be done in a matter of minutes. For example, CardChamp will provide you with a set of instructions for how to add the surcharge to your point-of-sale system. This may involve installing new software or updating your existing software.

Step 5: Train Your Employees

Once your surcharge system is set up, it's important to train your employees on how to use it. Make sure they understand how to add the surcharge to transactions and how to explain it to customers. It's also important to train your employees on any legal requirements or restrictions for surcharging.

Step 6: Monitor Your Savings from the Program

After you've set up your credit card surcharging system, it's important to monitor your savings. Keep track of your credit card processing fees before and after surcharging, and compare the two. You should also keep an eye on customer feedback on the surcharge.

Benefits of Surcharging

Now that you know how to set up surcharging for your business, let's take a look at some of the benefits:

  1. Cost Savings: Surcharging allows you to pass on credit card fees to your customers, which can save you thousands of dollars each year. This can help improve your bottom line and increase your profits.

  2. Competitiveness: Surcharging can help small businesses compete with larger competitors that may have more resources to cover credit card fees. By surcharging, you can level the playing field and offer competitive prices to your customers.

  3. Transparency: Surcharging can also improve transparency in your business. By letting customers know that you're passing on credit card fees, they'll have a better understanding of your pricing and costs. This can help build trust and credibility with your customers.

  4. Flexibility: Surcharging can also give you more flexibility in how you price your products or services. You can adjust your surcharge amount to cover the exact cost of credit card acceptance, which can help you avoid absorbing those costs yourself.

  5. Increased Cash Flow: Surcharging can also help improve your cash flow. By passing on credit card fees to customers, you'll have more money on hand to invest back into your business or pay off debts.

Surcharging can be a great way for businesses to save money on credit card fees. By following these steps and best practices, you can set up surcharging for your business in a matter of minutes. Just make sure to do your research, be transparent with your customers, and choose a reliable provider.

With surcharging, you can improve your bottom line, build trust with your customers, and increase your cash flow.

Wondering if a credit card surcharge program is right for your business?

Click HERE to book a no-obligation merchant account audit with a CardChamp fee elimination specialist today. 

Jeff Sarault

Written by Jeff Sarault