Surcharging on Card Transactions: In Search of Balance

The decision by a merchant to impose a surcharge on credit card transactions—usually a percentage of the purchase price to offset the cost of card acceptance—is understandable but still an untenable risk in most situations. Amid ever-expanding payment options and other strategies that don’t put the cost of doing business directly in consumers’ faces, merchants can try to ease their outlays without alienating the customers who keep them afloat. 

This Javelin Strategy & Research report assesses the current state of card surcharging, the risks incurred by merchants when implementing a surcharging policy, and the associated rights and responsibilities. It also examines two surcharging approaches adopted by small merchants and explores alternative methods merchants can implement to increase revenue and reduce costs.

Key questions discussed in this report:

• What are the rights, risks, and responsibilities involved in credit card surcharging?
• What are the limitations of surcharging?
• What alternatives to surcharging should merchants consider?

Companies Mentioned:

American Express, Blackbird Labs, Cassiopeia Books, Coinbase, Discover, HMSHost, Lyzi, Mastercard, Port Authority of New York and New Jersey, Venmo, Visa, Walmart