Merchant Surcharge Program

Credit card transactions incur fees for merchants, usually in the form of interchange fees, which are charges imposed by card networks (Visa, Mastercard, etc.) and paid to the card-issuing banks. A surcharge program allows merchants to pass these fees onto customers who choose to pay with a credit card. 

Implementation of surcharges is subject to regulations and laws in many jurisdictions. In some places, surcharging credit card transactions may be prohibited or have specific requirements, such as disclosure of the surcharge amount and its application only to credit card transactions.

Merchants must clearly communicate the surcharge to customers before the transaction is completed. This often involves displaying signage at the point of sale or providing verbal notification to customers. 

 Some jurisdictions prohibit surcharging on certain types of cards, such as debit cards, or may have caps on the surcharge amount. 

Merchants should consider how surcharges may impact customer perceptions and behavior. While it can help offset costs, it may also deter customers from using credit cards or affect their overall satisfaction with the purchasing experience.