Heartland recently shared this article with us, and we thought it would be helpful to share with you too:
Surcharging and Cash Discounting Explained
Jul 21, 2020 12:49:09 PM / by Lynn Skurla Perkins posted in Heartland Restaurant, Surcharging, Cash Discounting
Would Customers Mind Paying a Convenience Fee?
Jun 29, 2020 3:46:45 PM / by Lynn Skurla Perkins posted in Surcharging, Credit Card Fees, Convenience Fees
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.
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.
Cash Discounting Lessons from a New Payment Partner
Feb 13, 2020 4:21:01 PM / by Lynn Skurla Perkins posted in Payment Processing, Surcharging, Cash Discounting, Cash Discounts
This is an ongoing series of articles about cash discounting and surcharging programs.
I recently returned from a conference and attended a session by Clearent to learn more about this hot topic in the payment world. The number one take away from this conference - you need to follow the rules very carefully - and work with a partner that knows what they are doing!