Payment by credit card is quickly becoming the most common form of payment for goods and services because of the rewards, rebates and cash flow assistance that paying with a credit card brings. However, the convenience to the customer is not always a convenience for you and your business.
With the cost of credit card acceptance continuing to rise, it can be hard sometimes to justify the convenience of receiving a credit card payment with the impact it has on your profits and margins. This is when surcharging makes the most sense; by mitigating the cost of credit card acceptance you and your customer both win.
Is Surcharging Legal?
Surcharging has been legal in the US since 2013 and with a steady increase in the cost of credit card acceptance it is quickly becoming a favorite solution among many business owners. Being able to accept credit cards at 0% drives over-head costs down and makes your accounting department very happy. By not spending hundreds or thousands of dollars every month on credit card acceptance your business is able to invest that money elsewhere like new hires, expanding your market reach, another warehouse; whatever your business needs but was lacking the capital to accomplish.
A zero cost credit option allows you to offer multiple forms of payment without offering cash discounts or forcing your customers to pay in a way they would otherwise choose not to. ACH, cash, check or debit card transactions are all fee-free options to offer customers who do not wish to pay for the cost of their transaction.
Is Surcharging Right For Your Business?
What is most important when deciding on implementing surcharging in your business is knowing the rules and regulations so that it is done correctly. The rules of surcharging are mandatory so your system needs to be 100% compliant. Surcharging is legal in most states across the US but not all; Colorado, Connecticut, Kansas, Maine, Massachusetts and Oklahoma still do not allow surcharging. This will likely change in the near feature; most recently New York, California and Texas were able to overturn the ruling baring their states from surcharging.
Collecting payments every month from your customers doesn’t have to cost you a fortune. Surcharging offers real, quantifiable savings to your business’s bottom-line. Is your B2B company ready to drive your credit card processing costs down to 0%?
NXGEN offers a 100% compliant zero cost credit processing solution. If you would like to lower your overhead costs & increase your profit margins or just have questions about our zero cost credit payment solution, contact NXGEN today.