Tips to Implement Surcharging in Your Business 

In Australia, businesses are permitted to pass on payment card surcharging costs to customers. Surcharging is the practice of adding an additional fee onto a transaction when a customer pays with a credit or debit card. This is done to recoup some of the merchant’s fees associated with accepting that particular form of payment.

In fact, not only is surcharging permitted, but it has become common practice in Australia. Like the tipping culture in the United States, surcharging has become part of the payment culture in Australia. In this guide, you’re going to learn everything you need to know as a business.

What is surcharging? Surcharging is the practice of adding a fee to a transaction when a customer pays with a credit or debit card; this is done to recoup some of the merchant’s fees associated with accepting that particular form of payment.

What types of surcharges are allowed? The regulations on surcharging depend on the type of card used and the issuing bank. Thankfully, it’s possible to recuperate some (if not all!) of the costs associated with accepting credit and debit cards through surcharging. Once you set up an EFTPOS terminal, you can surcharge customers and you won’t have to pay transaction fees again.

What are the benefits of surcharging? The primary benefit is that it allows you to pass along the cost of card acceptance to customers who choose to pay with credit or debit. This way, you won’t have to bear the full brunt of card processing fees. Because of the cost savings, many businesses opt to use surcharging as a way to offer discounts to customers who pay with cash or check.

Tips to Implement Surcharging

So, how do you go about implementing surcharging in your business? Here are some tips to get you started:

1. Educate yourself on the rules and regulations. Before you implement surcharging at your business, make sure you understand all applicable and state laws. Be aware of any changes in laws that determine the level of surcharge you can impose.

2. Choose your payment processor carefully. Your chosen payment processor should be able to guide you through the process of setting up surcharging and provide assistance in meeting laws and regulations.

3. Inform customers about your surcharging policy. Make sure customers are informed of your surcharging policy and that they know how much the surcharge is; this will help avoid any surprises when it comes time to pay. As mentioned, surcharging is part of the payment culture in Australia so consumers are now accustomed to this practice.

4. Set the right surcharge amount. Setting a surcharge that is too high may lead customers to look for other payment options. A good rule of thumb is to set the surcharge at no more than the cost charged by your payment processor; any additional costs should be absorbed by the business.

With these tips in mind, you can implement surcharging in your business without worry. Customers may be more accepting of surcharges if they understand why it is necessary, and the right surcharge amount helps to cover costs without hurting your customers. Good luck!