First thing, yes you can add a surcharge to all your transactions when using ArtsPay. You can add surcharges for in-store purchases through our payment terminals, or online payments.
The question you should be asking yourself is, when is it appropriate to add a surcharge and how much?
- Is it common to surcharge in my industry?
- Is the surcharge amount going to put customers off, or sour the experience right at the end when they pay?
- Should I pass on the full amount? Or would a partial amount be better?
We advise our clients and partners to be customer centric and consider their experience. If you decide that you want to add a surcharge, it is important you understand your legal obligations as these are the merchant’s responsibility.
What you need to know
The amount The surcharge you add on can’t exceed your cost of acceptance. In your statement, the cost of acceptance covers all the fees you are charged including payments, account fees and terminals. The surcharge has got to be less or equal to your current cost of acceptance.
Review regularly You need to review your cost of acceptance yearly to make sure you aren’t overcharging customers.
Display signage If you are adding a surcharge to your payment terminal, it is required that you display the card types that have surcharges and the amount that is being passed on. It should be clear and easy to read. Keep your customers informed and they will be much happier. No one likes hidden fees at the last moment.
Fees for good ArtsPay gives 50% of the profits from merchant service fees to the arts. This means that some of the fees are going to a good cause. All of a sudden those pesky surcharges are making a positive contribution.
Lower your rates There are some payment providers out there that tout that they have no fees! By passing on all the costs to customers you don’t pay anything!
That is fine, but they are often really expensive options and while it doesn’t cost you anything, your customers are paying for it. Instead of a no fee option, work with a reliable payment partner to bring your fees down. A win for you and a win for your customers.