[INFOGRAPHIC] The Dangers of Surcharging on Credit Card Transactions

The Dangers of Surcharging (Infographic) - Banner

[INFOGRAPHIC] The Dangers of Surcharging on Credit Card Transactions

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What is surcharging? At first, the practice sounds straightforward. Your business is charged for each credit card transaction that it runs, and with surcharging, you pass that cost on to your customers. However, there are dangers involved with the practice of surcharging on credit card transactions. In fact, only 2% of Americans report that they would be willing to pay a 2% fee to use their credit card.

If your business is looking to reduce processing expenses by surcharging, take a look at this infographic for an overview of how it works, where it’s allowed, and what the restrictions are. For a more in-depth look at this topic, read the full blog post here.

1. Where is surcharging illegal? Anti-surcharging laws are currently enforced in the following 4 states:

• Colorado
• Connecticut
• Kansas
• Massachussets

2. What restrictions are there? One of the dangers of surcharging on credit card transactions is that, even in states where surcharging is legal, the card associations (Visa, MasterCard, Discover, etc.) still have restrictions in place. These include:

• Surcharges can only be applied to credit cards, NOT debit cards.
• Surcharging must be disclosed at the point of entry and point of sale.
• You must notify the card associations 30 days prior to implementing surcharges.
• You cannot charge more than 4% OR what the transaction costs, whichever is lower.

If your business is considering surcharging, you might just be paying too much for processing. Give BASYS a call for a free comparison with your current processor. If you’re in a good spot, we’ll let you know. If you’re not, we’ll let you know exactly how much you can save!

To request your free savings analysis, just fill out the form below!

BASYS Processing as a business partner


If your processor doesn’t offer industry-leading solutions and world-class customer support, please call BASYS Processing at (800) 386-0711 or enter some basic information in the form below. Let’s talk about creating a true business partnership that will help you exceed your goals.



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