do you charge your customers to use a credit card?

[cashaber]

I used to live in a big city and hardly anyone there charged any one to use a CC. The owners took is as a business expense. Now I live in a small town under 10k population and it seems everyone wants  to charge 3% to use a credit card.

Me? No! I think thats an obscene  thing to do it should be a business expense. Instead of adding this to your charges why not just include it into your markup. customers hate paying add on charges for things its like penny pinching or hidden fees.

believe me, Its better to include this in with your markup than add it later. kinda like what you might see on an ebay item where you see some skyrocketed shipping cost   $10 for the item and $10 for shipping. People would rather see $16 or$18 for the item and $4 for shipping; just a marketing technique.

Even if they pay cash its a 3% gain that might help to cover some other expense. or a cash discount your not selling gas and you dont get a discount on that item(s.)

[VanKalkerFarms]

I 100% agree.  I build 5% into my price for payment handling.  Handling cash is not free and also has its own inherent risks and expenses.  You don't break your insurance, electric bill, labor bill, rent, etc out separately on the bill no need to do the payments.  I will not do it at my business and we paid over 25k in Square fees.  I'd much rather pay my Square fees and have it in my account the next business day or 2.

[JK_Fiber_Art]

Hi Cashaber,

We don't charge - doing so can be a bit tricky as this is considered a "surcharge" - credit card issuers have specific guidelines for doing this.  Some sellers will add a "service charge" to cover the costs however, it seems to work out better by raising the item price as you stated.  Another option if you're selling in person - offer a discount for cash - everyone likes a deal.

jk

[cashaber]

My thoughts exactly. Customers dont want to know this and certainly dont need to know this. since now days   most people use debit cards to pay almost everything however a lot of people still use cash for small purchases. I would hate to see a reciept broken down such as

Item==========================

item cost                                            $5

elec fee                                              $1

gas fee                                                $.50

rent/lease build maint etc                 $3

Markup                                               $5

Payroll                                                 $2

Other services (Net/merchant fees  $1

Sub Total                                            $17.50

Tax                                                      $  1.50

========================================

Total                                                    $19.00

wouldn't that be a bit ridiculous.  This is just an example off the top of my head but I think people get the point. As a matter of fact I do believe that credit card processing fees are tax deductible