What are the struggles with Surcharging?

While some businesses can successfully implement a credit card surcharge, there are several factors that may hinder its success or make it less appealing:

1) Legal restrictions:

Surcharging is prohibited in Many U.S. states, making it illegal for businesses in those jurisdictions to implement such a program.

2) Card network rules:

Major credit card networks (Visa, Mastercard, Discover, and American Express) have their own guidelines and requirements for surcharging. Non-compliance with these rules may result in penalties or loss of credit card acceptance privileges in perpituity.

3) Consumer perception:

Customers may view surcharging negatively, as it adds extra fees to their transactions, potentially leading to dissatisfaction and loss of business.

4) Administrative burden:

Implementing a surcharge program requires careful management to ensure compliance with regulations and card network rules, which may involve additional administrative tasks and additional detailed accounting costs.

These challenges may make it difficult for a business to successfully implement a credit card surcharge program, leading them to consider alternative methods to recuperate processing fees such as the Cash Discount program.