43000 W 9 Mile Rd Ste 123, Novi, MI 48375

Credit Surcharge Program

What is Credit Surcharge?

Credit card surcharge is when a merchant passes along the cost of credit card acceptance to the customer to help offset the costs of payment processing. Many merchants have been ripped off over the years, so they are not aware of the true cost of credit card acceptance. There are some credit cards that costs over 3% to accept, however with Nerd Merchant Solutions we offer some of the lowest rates around with rates as low as .15%, so it’s important for merchants to evaluate their business before going to a surcharge program.

We tell merchants all the time we understand the costs of accepting credit cards is getting out of hand and we want merchants to know the best options before deciding on a pricing model. Nerd Merchant Solutions was formed to reduce the high cost of credit card acceptance. We believe businesses should be presented with our low cost options and surcharge options before deciding on a long term credit card acceptance program. 

Is It Legal?

One of the most common questions we hear is if it’s legal to charge a surcharge when a customer their card to pay. And the answer is it depends. It’s always important to check with a lawyer before deciding if something is legal or not as laws vary greatly by state. 

Per card brand terms and federal statue, merchants cannot surcharge debit cards. Furthermore, only credit cards can be surcharged, however due to recent card brand regulations, a credit card surcharge cannot exceed 3%. 

Furthermore, there are states that do not allow credit card surcharge. As of March 2022, we cannot offer surcharge to merchants in Connecticut, Maine, Massachusetts, Puerto Rico, and Canada.


Should I Surcharge?

Before deciding to do a credit card surcharge program, it’s important for businesses to know their client base in addition to knowing the markets they serve. Before implementing a credit card surcharge program, a business owner should ask the following questions:

  1. What type of customers are we serving?
  2. How are our products/services priced compared to our competitors? 
  3. What margin am I getting on the products/services I am selling?
  4. Was I aware that I can only surcharge credit cards and that surcharging debits cards is a violation of the card brands and even some state laws?
  5. How many customers will I loose when they start seeing a surcharge on their receipts?

Should I Switch to Credit Card Surcharing?