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ReadersSpeak
Surcharging in 2020 This is so for a couple of reasons. Many retailers, especially
small and midsize businesses, fear consumers will object
've heard conflicting things about surcharging card to the practice and take their business to merchants who
transactions. Apparently, it's legal now, but word don't surcharge. Others fear that if surcharging gains wide
doesn't seem to have filtered down to Main Street acceptance, it will signal to the card brands and issuing
I merchants. Is it really legal, and how feasible is it? banks that they can increase fees even more.
Tom Lydon Surcharging is, however, taking hold among merchants
Merchant Level Salesperson who have not previously accepted credit cards because
Tom, they didn't want to pay the related fees. It is also gaining
steam in B2B payments where parties hit with surcharging
The major card brands banned imposing surcharges on fees are unlikely to bolt because switching to another
card payments until 2013, when they revised their rules service or materials provider would disrupt the supply
to allow the practice. However, surcharging of credit card chain. And some philanthropic nonprofits can make a
payments was illegal in 11 U.S. states until 2017, when the good case for passing on the fee to donors because more
Supreme Court struck down a New York anti-surcharging money will then be going toward their cause.
law. Surcharging debit card payments, however, remains
illegal across the board. Whether surcharging will eventually become palatable
to most consumers is an open question, but there are
Now, the only remaining states whose anti-surcharge laws service providers who can make the process seamless for
impede adoption are Kansas, Colorado, Massachusetts merchants who choose to try it.
and Connecticut. However, efforts to enable surcharging
in those states are ongoing, and it is generally accepted Your views
that, given the Supreme Court's 2017 decision, those states Tell us about your experiences with surcharging, cash
will ultimately allow the practice, too. Legalities aside, discounting or other current industry developments at
however, surcharging is not necessarily the right solution greensheet@greensheet.com.
for all merchants who want relief from interchange fees.
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