It’s a universal truth we can all nod along to – navigating a successful business is a constant balancing act between income and expenses, right?

Now, just imagine if there was a way to offset some of those expenses without causing a stir among your customers.

In this article, that’s exactly the possibility we’re going to dive into.

We’ll venture into the ever-growing trend of credit card surcharging in the U.S., unpack its legal implications, and most importantly, discuss how to approach this topic tactfully with your customers.

Intriguing, isn’t it?

So, let’s dig in and uncover how this rising practice could potentially bolster your bottom line while keeping your customer relationships intact.

The New Trend: Credit Card Surcharging

The dawn of a new financial trend has arrived: credit card surcharging.

But what exactly is it?

Simply put, a credit card surcharge is an additional fee that a business adds to a customer’s bill when they choose to pay with a credit card. This fee typically covers the cost of the credit card processing fee charged by card networks, allowing the business to retain more of its profits.

The rising popularity of credit card surcharging in the U.S. is a fascinating phenomenon. Over the past few years, it’s steadily gained acceptance as a way for businesses to combat the increasing costs of credit card processing fees.

Yet, like all significant changes, it’s a concept that needs to be approached thoughtfully.

So now you’re likely pondering?

Why has credit card surcharging grown so rapidly in popularity? Let’s dive deeper to better understand the appeal.

The Rising Popularity of Credit Card Surcharging

You might find yourself asking, “Why has credit card surcharging grown so rapidly in popularity?”

Here’s the scoop:

With the increasing shift towards cashless transactions, businesses are experiencing higher operating costs due to credit card processing fees. These fees can range anywhere from 1.5% to 3.5% of the transaction value.

Multiply that by hundreds or even thousands of transactions, and you’re looking at a substantial expense. So, how do businesses combat this? They pass on these fees to the customers via credit card surcharging.

But wait, there’s more.

It’s not just about the costs. Credit card surcharging can also be a strategic move. It might encourage more customers to pay with cash or check, reducing the processing fees the business needs to cover.

Additionally, businesses can offer cash discounts as an alternative to surcharging, providing flexibility for both the business and the customer.

Sounds like a win-win, right? Keep reading. The story gets even more interesting…

Surcharging and the Law

Let’s navigate the complex maze of legalities surrounding credit card surcharging. It’s true, the thought of adding a surcharge might make you anxious.

Questions pop up – “Is it even legal to surcharge?”

Well, let’s clarify that.

The practice of surcharging was actually outlawed for several decades in the US. Then came 2013 – a pivotal year. A class action lawsuit shifted the dynamics, permitting merchants in most U.S. states to implement surcharges in their businesses.

Interestingly, credit card surcharging is currently legal in all but two states – Massachusetts and Connecticut.

However, don’t lose hope if you’re operating in these states. You can still implement ‘Cash Discounts’ for customers who don’t pay by card. Now, that’s a smart workaround, isn’t it?

You may even want to consider ‘Cash Discounts’ even if you don’t operate out of these two states, but more about it later in this article.

Of course, it’s not a free-for-all scenario. There are rules and regulations in place that businesses must follow to legally implement a surcharge. These laws can differ from state to state, making it even more important to do your due diligence.

We’re not legal experts here, and the purpose of this article is not to provide a detailed rundown of these laws. So, it’s always best to consult with a professional or directly with your payment processor to ensure you’re staying within the legal boundaries.

Are you with me so far? Great! Let’s keep going.

Clear Communication: The Art of Discussing Surcharging with Your Screen Printing Customers

But how can you introduce this to your customers without losing their trust? Here are a few key pointers.”

As a screen printing business, where margins can be quite thin, adopting credit card surcharging could be a game-changer.

However, it’s crucial to communicate this change effectively to your customers.

You might be wondering,

“How exactly do I approach this conversation?” Good question.

Begin with transparency. Openly discuss the reasons for the surcharge – explain that credit card processing fees have a significant impact on operating costs, which in turn, can lead to higher prices. By using credit card surcharging, your business can better manage these costs, and potentially keep prices more stable.

But wait, it doesn’t stop there.

You may also want to introduce cash discounts. This can serve as an excellent alternative for those who prefer not to pay the surcharge, providing more options for your customers.

But remember, as a screen printing company when using screen printing management software, it’s crucial to stay updated with the latest features and offerings that could enhance your operations, like Teesom’s integration with Paystri for easy and legal credit card surcharging.

Still with me?

Good, because there’s more to uncover. Let’s dive in.

Embrace the Change: Surcharging Simplified with Paystri

So how can you start reaping the benefits of surcharging without the headache?

Here’s the easy solution.

If you’ve come this far, it’s clear that you’re seriously considering surcharging as a way to offset costs. But implementing this change might seem daunting, especially when you think about all the legal aspects involved.

But what if there was a simpler way?

Enter Paystri, the easy, legal way to implement surcharging. With Paystri, you’re not only adopting a solution that handles the complexities of surcharging, but also embracing an efficient way to bring down costs.

And guess what?

Paystri isn’t just any payment gateway. It’s Teesom’s preferred merchant gateway, tailored for screen printing companies like yours. It’s designed to make your business operations smoother and more efficient.

Paystri takes care of the legal disclosures, ensuring you’re compliant at all times.

But it doesn’t stop there.

Did you know that Paystri also offers ACH services? With a charge of only 1%, it’s another fantastic way to reduce processing costs.

Starting to see the light at the end of the tunnel?

Great, because there’s more.

By integrating Paystri with your screen printing management software like Teesom, you get to enjoy a seamless transaction process. From surcharging to issuing cash discounts, everything’s covered!

Now, all that’s left for you is to take action.

Sign up with Paystri, and start your journey towards better cost management. Remember, in the world of screen printing, every cent counts, and with Paystri, you’re set to make each one count.

Excited to get started? We thought so!

Wrapping It Up

So, are you ready to make a smart business move and boost your bottom line? Remember, the solution is just a click away.

Let’s take a quick stroll down memory lane.

We’ve shed light on the rapidly growing trend of credit card surcharging in the U.S., a strategy adopted by many businesses, including screen printing companies, to offset costs. We’ve clarified the legal aspects, and highlighted that it is indeed legal in all states except two, with alternatives available.

Most importantly,

We’ve emphasized the critical role of communication and transparency when introducing this new policy to your customers. After all, it’s all about delivering value and maintaining trust.

We also introduced you to Paystri, Teesom’s preferred merchant gateway.

With Paystri, implementing credit card surcharging is made easy and legal, taking the stress off your shoulders.

Plus, with additional services like ACH that charges only 1%, it offers further possibilities for cost reduction.

It’s time to join the trend and make credit card surcharging work for your business.

With Paystri and Teesom, you can effortlessly integrate this system into your operations, ensuring smoother transactions, and most importantly, improved bottom-line results.

Your next step is clear: sign up with Paystri. Take advantage of this powerful, yet simple solution, and start making your every cent count in your screen printing business today.