Monday, January 28, 2013

OK to Charge Credit Card Transaction Fees in Some States

One of the (many) confusing aspects of merchant services (credit and debit card processing services) is how to cover the costs. A typical merchant can be charged anywhere from 1.6% all the way up to 5% as a transaction fee (depends on business or personal credit history, type of products sold, and what type of credit or debit card is being used).

As of today, you can now charge a transaction fee for customers using credit cards instead of cash or debit cards (pin-based) in 40 states.  I honestly would not advise doing this - better to build the cost of credit card processing into your target margins than tack on additional fee's that may upset some customers.

Here is a link with more information as well as which states allow you to add a credit card transaction fee:

Are you in the US and in need of no cost retail point of sale advice? I'm happy to help and can be reached on my cell at 208-340-5632 (mountain time) or via email at

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