Grocery POS News

Would Customers Mind Paying a Convenience Fee?

Jun 29, 2020 3:45:52 PM / by Lynn Skurla Perkins

During the pandemic, it is now common to see convenience fees in many industries and businesses - for grocery delivery and pickup, restaurant delivery and pickup, to help cover increased overhead costs for sanitizing and other regulation.

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The other "convenience fee" that is becoming more mainstream is a fee for the convenience of using a credit card.  In technical terms, it is called surcharging, but many business owners think of it as a fee passed on to the customer for the convenience of using a credit card vs paying in cash.  Typical fees charged are 3.99%.  On a $10 sale that translates to roughly .40 cents per transaction.  

While this seems like a relatively small amount, for a business when you add that up over all your credit card transactions, now we are talking some real money.  For a customer with $50,000 in monthly credit card sales, this translates into ~ $2,000 savings in credit card fees per month or $24,000 per year!  Now that gets a person's attention.  

Of course, there are guidelines and rules to be followed when implementing surcharging in your business.  Which is why you want to work with a company that understands surcharging programs and can help you set it up correctly.

If you are curious how it would work for you, please give us a call at 907-243-2683.  We can answer your questions and see how surcharging could work in your business.

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Tags: Surcharging, Credit Card Fees, Convenience Fees

Lynn Skurla Perkins

Written by Lynn Skurla Perkins

Lynn grew up in the point of sale and cash register industry working in the family business – and is now at the helm of Skurla's POS Solutions. She enjoys working with local Alaskan businesses, especially restaurants, grocery stores, and retail operations - helping them control costs and increase revenues through well managed point of sale solutions. Besides running the company, Lynn has also served on the Board of Directors, and as Chairman of the Board, for the Retail Solutions Provider Association. In her spare time, she loves cooking, camping and volunteering with organizations that are passionate about helping children.

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