This has been covered elsewhere but I apologize for not being able to find the thread. Basically charging the processing fee to the customer may be illegal in your state as well as a violation of Visa/MC terms. Also, it may just be bad business as in charging your customers extra for using a credit card when all other merchants do not. It is just a cost of doing business that unfortunately you see upfront in that it comes out of your daily deposit and is a direct result of that sale. However, you no doubt have other costs like electricity, advertising, internet, heat, etc. that are also parts of the cost of doing business but you see them after the fact when you pay the bill.
You can raise your prices by a few percent to offset costs. You can offer a cash discount to encourage a 'fee free' transaction as well.
