A surcharge credit card processing program is a system that allows businesses to pass the cost of credit card processing fees onto their customers. Instead of the business absorbing these fees, a percentage—usually a set rate—is added to the customer's total when they pay with a credit card. This helps businesses offset the costs of accepting credit card payments without raising prices across the board.

 

However, surcharging is regulated, and businesses must follow legal guidelines, including clearly informing customers about the additional charge before they complete their payment. Some states prohibit surcharges, and credit card networks have specific rules businesses must comply with. It is important to note the limited effectiveness for Debit Card Users – Since debit cards cannot be surcharged, businesses still absorb transaction fees for those payments. 

 

When implemented correctly, a surcharge program can help companies manage expenses, but it requires careful communication to maintain customer trust and satisfaction.