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Hull Diver
Level 3

Question About Credit Card Surcharges In California

Hey kids,

Hoping to pick the hive mind here and get some guidance:

I own a small marine service business in the Bay Area. The great majority of my clients are serviced on a regular schedule and after the work is completed, they are emailed an invoice. The great majority of those invoices are paid with a credit card via Quickbooks Payments. I have never included a surcharge on my invoices for the customer's use of a credit card but as my business grows, the transaction fees that I am being hit with now run well into five figures. So to help offset those transaction fees I am considering implementing a surcharge for those of my customers that pay with a credit card. Have any of you been in a similar situation? If so, I have some follow-up questions for you. Thanks.

4 Comments 4
Rustler
Level 15

Question About Credit Card Surcharges In California

google search gives the answer quickly

"California has a law, California Civil Code section 1748.1, that prohibits retailers from adding a surcharge when a consumer chooses to use a credit card instead of paying by cash."

 

It is a cost of doing business, just one of those things.

Hull Diver
Level 3

Question About Credit Card Surcharges In California

Yeah, except the law has been called unconstitutional by a federal court and cannot currently be enforced.

Rustler
Level 15

Question About Credit Card Surcharges In California

Interesting, thanks for bringing that up.

 

I see it as something a business should stay away from. I know if I have the option to buy the same thing at about the same price, I will buy from the place that does not add a surcharge.

 

And on top of that I don't see how you can do it legally. Debit and prepaid cards, regardless of who issues it, can not have a surcharge added. And the surcharge has to be a separate line item on the sales receipt.

 

Why bother when you can just raise your price 2% or so.

MAPS-Zero
Level 1

Question About Credit Card Surcharges In California

Hey HD,

 

Just last month a new (and only) Quickbooks plugin for surcharging was integrated into our platform.   You can now push back the credit card processing fee to your customers and it'll all flow smoothly through QB.  With everyone getting miles or 2-5% cash back etc..., credit card processing fees have gone out of control.  Surcharging is now legal in the US and it's the fastest growing segment in payment processing.  We support all payment cards, including Amex, so your customers can pay the way they want to but with our system, they will pay the processing fees and not you.

 

If you'd like more information, please contact me directly at [email address removed].

 

Cheers,

 

Rayce

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