For consumers, this cost can quietly add up, especially for larger purchases like rent or tuition. For business owners accepting cards, understanding what your specific merchant agreement actually permits, rather than assuming any surcharge is automatically allowed, matters, since surcharging in breach of a card scheme's rules can put a merchant's payment facility at risk.
Frequently Asked Questions
Why do merchants get charged for accepting card payments in the first place?
Banks and payment processors charge merchants a percentage-based fee for each card transaction processed, to cover the cost of the payment infrastructure and fraud risk.
Can a business simply add whatever surcharge it wants for card payments?
Not necessarily — most merchant agreements with banks and card schemes set specific rules and limits on surcharging, so businesses should confirm this with their payment provider.
Is there a way for a consumer to avoid card surcharges?
Sometimes — asking whether a cash or alternative payment method avoids the fee, or comparing the total cost across payment methods, can help avoid unnecessary charges.