Surcharge Program

Term – Surcharge Program

Summary – A surcharge program simply allows a merchant to charge their customer a fixed % to help offset the cost of merchant processing fees. This type of program is extremely similar to a cash discount program with one key difference. If a customer elects to pay cash with a surcharge program there will be no discount applied to the transaction. Surcharge programs like cash discount programs are growing in popularity.

Surcharge Program Example

For instance, if merchant has a $100 widget and a customer elects to use a credit card for the transaction – 3% may be added to the total. This makes the total $103.00.

If that same widget is sold and a customer elects to pay cash the price would remain at $100.00.

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