However, those fees can add up. For a business to avoid paying that fee every time someone uses a credit card, the fee is passed on to the consumer in the form of a surcharge. While some merchants don't know they can charge extra, many avoid it simply because they value their customers.
Is it legal to charge customers credit card fees?
- While credit card surcharges are legal in most states, businesses would be wise to limit use of them, as they risk alienating customers. Shoppers will always judge for themselves if they think a business practice is unfair, and can choose to shop elsewhere.
Is it legal to pass on credit card fees?
- These fees are called credit card surcharges, and they're more common than you might think. Retailers may decide to charge these fees to help offset the credit card processing fees they have to pay. In some states, however, it's illegal for businesses to pass credit card processing fees on to the customer.
Can You charge your customers a credit card processing fee?
- You can charge your customer the credit card processing fee by adding this to their invoices. You can use a service item for the fee. Here's how: Go to Sales then choose Products and Services. Click on New then select Service. Enter the name of your service item. (Example CC Fee)
How do you calculate credit card fees?
- Convert your APR to a daily rate The majority of credit card issuers compound interest on a daily basis. ...
- Find your average daily balance This step is the most tedious since you’ll need to know what your balance was every day during the billing cycle. ...
- Calculate your interest charges