Does your credit card processing service offer surcharging?
Surcharging, also known as “checkout fees” or “credit card surcharges,” refers to the practice of charging an additional fee to customers who choose to pay with a credit card. Working with a credit card payment processing service who offers surcharging is important for auto repair shops for three main reasons:
Surcharging allows shops to pass fees onto customers who choose to use credit cards. This helps shops offset the costs associated with card payments and maintain their profit margins.
Surcharging allows merchants to offer more flexible payment options without the cost of taking on the risk themselves. Shops can either choose to absorb the credit card fees themselves, offer cash discounts, or pass the fees on to their customers. This flexibility can be beneficial and often necessary to survive in the competitive auto repair industry.
By passing on the credit card fees to your customers; a business can reduce their business expenses. For businesses with thin margins, any cost reduction can make a tremendous difference.
It is important to note that surcharging is subject to various laws and regulations, and the permissibility and restrictions on surcharging can vary by district and payment network (e.g., Visa, Mastercard, American Express). Payment providers need to ensure that their surcharging practices comply with applicable laws and card network rules to avoid legal and financial repercussions.
Peri payment processing offers surcharging as an option for auto repair shops to offset the fees associated with credit card transactions, thereby increasing their profit margins. Talk to a Peri payment processing expert today!