Adding Credit Card Fee Surcharges: Bad Strategy
- Daniel Hart
- Mar 25
- 1 min read
Is imposing surcharges for using credit cards (to offset fees) good business? I've been seeing it more and more in both consumer and in business to business commerce - the notices are coming by email and popping up at the point of purchase.
Has adding this surcharge become more necessary now than in the past to survive as a business? Is it "contagious" as more sellers do it? Does it pass along the anger customers feel about inflation to the banks? Good Strategy or Bad Strategy?
My verdict is Bad Strategy. Adjust your prices to cover your costs plus the margin you need while maximizing overall revenue/profits. Keep it simple for yourself and the customer. You can then choose to offer a discount for cash or equivalent which will make some customers appreciate the deal vs. alienating those who choose to pay by credit.
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