In today’s increasingly cashless society, credit card surcharging has become a hot topic for businesses looking to offset rising processing fees. With the average credit card processing fee ranging from 1.5% to 3.5% per transaction, it’s no wonder that merchants are seeking ways to mitigate these costs. Let’s dive into the world of surcharging and explore its implications for businesses and consumers alike.
Understanding Surcharging
Surcharging is the practice of adding an extra charge to consumer purchases to offset credit card fees. This allows businesses to recover payment processing expenses by passing them directly to customers who choose to pay with credit cards.
The Surcharging Landscape
Credit card processing fees have increased from 1-2% in 2019 to as high as 3-4% in 2022. Due to this, 31% of independent and small merchants in specific categories such as restaurants, convenience stores, and gas stations have started implementing surcharges as of 2022.
Want to learn more about surcharging? Check out Yeeld’s blog here to learn about key considerations for implementing a credit card surcharging program.
Introducing Yeeld’s Surcharging API
As businesses navigate the complexities of surcharging compliantly, more solutions are emerging to simplify the process. Today, Yeeld, a leader in payments integrations, is announcing the launch of its cutting-edge Surcharging API.
Our API offers several key features:
- Real-Time Compliance Guidance: Provides access to a proprietary database of surcharging guidelines, covering state regulations, card brands, and funding sources.
- Automated Updates: Continuously refreshes to reflect the latest surcharging guidelines.
- Fully White-Labeled Solution: Allows seamless integration into existing payment platforms and customer checkout experiences.
This unique solution aims to empower businesses of all sizes to recover credit card processing fees in a compliant and efficient manner, addressing the complex and ever-changing regulatory landscape of surcharging.
Conclusion
While surcharging offers a potential solution for businesses to offset credit card processing fees, it’s not without its challenges. Merchants must carefully weigh the benefits against the potential loss of sales and customer goodwill. As the payment landscape continues to evolve, solutions like Yeeld’s Surcharging API may provide the tools necessary for businesses to navigate these waters more effectively.