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September 16, 2024
Question

Is there anyway to automatically charge customers for card processing fees?

  • September 16, 2024
  • 2 replies
  • 0 views
Card processing fees are eating profits. Don't want to charge more would rather just have the customer pay for their rewards amd not me.

2 replies

BigRedConsulting
September 16, 2024

RE: Card processing fees are eating profits. 

 

Yes, you and (keep in mind) every other merchant that accepts credit cards.

 

 

RE: Is there anyway to automatically charge customers for card processing fees?

 

No. For one thing, the fees aren't known before the charge is made as cards are different, carrying different fees for you. And then there's the circular math problem: If the fees are added to the initial sale, then the fees go up. For which you'd need to increase the charge, which would cause the fees to go up again. And so on and so forth.

 

What you can do for your customers that will use a credit card is tack on a 3% fee (or so) to the sale, which will more or less cover the eventual fee you're charged.

 

 

RE: Don't want to charge more would rather just have the customer pay for their rewards amd not me

 

Do you pay the fees when you use your credit cards? Probably not.

 

In the end, we all pay for these fees, even when we use cash for purchases. This is because merchants have all raised their prices to cover the 2 - 3% fees they pay for credit card usage - a cost of doing business.

January 8, 2025

Was there a law passed in CA effective in 2025 that doesn’t allow passing on electronic processing and credit card fees to customers? 

September 17, 2024

@lomarineelectron 

Are you B2B or B2C? You can use a 3rd party payment processor.