5 Myths About Surcharging That Are Costing Small Businesses Money

If you’re a small business owner, you’ve likely heard conflicting – and sometimes intimidating – claims about surcharging. From rumors about legality and customer pushback to fears of technical complexity, these myths have convinced thousands of merchants to keep covering credit card fees out of pocket. Over the course of a year, that can mean losing over ~$10,000 in profit for an average small business.

It’s time to separate myth from reality. Here’s what the data and real-world experience show:

Myth #1: “Surcharging Isn’t Legal”

Fact: Surcharging is allowed in the vast majority of U.S. states as of 2025. Four states currently have clear blanket bans. Another four – California, New York, Colorado, and New Jersey – have special regulations. For example, California does not clearly prohibit surcharging, although it is considered a highly risky state based on the ambiguity in the Honest Pricing Law.

Myth #2: “Customers Will Refuse to Pay”

Fact: Many customers will accept small, transparent card fees, especially when alternatives like debit or ACH payments without fees are clearly offered. Transparency and choice reduce pushback significantly as fees are passed only to credit card users who opt to pay that way, without raising your overall list prices. This practice aligns with payment industry observations and merchant case reports.

Myth #3: “I Need a Developer to Set This Up”

Fact: Modern surcharging platforms offer payment pages that integrate with popular payment processors (Stripe, Square, Checkout.com) and require no coding or website overhaul. This plug-and-play approach fits small businesses with limited software development resources.

Myth #4: “I Don’t Process Enough Volume to Bother”

Fact: With $24,000/month card volume in 2025, typical rates (2.5–4%) translate to ~$600 – $960 lost to card fees monthly – more than $11,000 annually. Even smaller volumes mean meaningful savings; every dollar reclaimed directly boosts cash flow.

This math reflects typical merchant fee structures and benchmark data.

Myth #5: “Surcharging is Too Much Hassle”

Fact: Today’s surcharging platforms can help automate fee calculations, state-specific rules, fee displays, and refund policies – dramatically lowering operational complexity and helping small businesses stay compliant. Merchants can start or pause surcharging with simple controls, preserving flexibility.

Ready to Stop Absorbing Card Fees?

If you’re a small business owner using Stripe or other processors, surcharging doesn’t have to be daunting or technical. 

Reach out to Yeeld at sales@theyeeld.com. 

We’ll confirm what’s possible in your state and help you keep more of what you earn.