In New York, a new credit card surcharge has hit local companies and customers are mad!
Businesses often have to pay a fee for charging a customer’s card, just to process the same payment as a cash customer. The difference? The company makes more money on the cash sale. Due to a recent court case, these companies may now charge a fee to help balance the loss when charging a customer’s card vs the cash sale.
However, some businesses are taking a bad hit through reviews. Some customers have even noted they will not return to companies charging the fee. This puts these companies in a difficult position.
What does this mean for you?
First of all, any company that automatically charges a ‘tech fee’ is less likely to leave customers happy. You need to find a balance.
Some companies already have. By offering a discount on cash sales only, customers feel like they are receiving a benefit. Thrifty customers will pay cash for a discount. Credit customers will be grateful they are not receiving a percentage charge.
You also need to make sure the discount is obvious. Make all customers aware that their cash sale will save them, well, cash.
Should this practice move countrywide?