8 Benefits to Price Transparency with Surcharging

Posted on October 14, 2019 at 08:54 AM

8 Benefits to Price Transparency with Surcharging

Customer Service Means Respect:

Each year businesses spend countless hours and dollars on customer service training. Corporations justify these costs based on the sound logic of; what will it cost if we don’t train staff on how to treat customers? Consider this, the essence of customer service is customer respect, then how is hiding credit card processing fees by “baking” them into prices respectful to debit card paying customers? Frankly, it’s not.

Superior Customer Service:

Many merchants currently “bake” all their credit card swipe fees into their prices. What many customers don’t know is that merchant costs are 2% to 6% lower when a customer pays with a debit card, yet these customers are not offered lower prices because the merchant decided to “bake” credit card swipe fee into product prices. This practice is disrespectful as it uses debit card customers to subsidize the merchants’ other credit card paying customers.

Transparency = Respect:

Most merchants automatically allow customers the option of choosing different shipping methods, and while some of these methods may cost slightly more, they are not baked into the price. The actual cost of shipping is detailed in separate line items the same as taxes are delineated. The InterPayments solution, just like shipping choices, offers customers the option to decide what fees they are willing to pay rather than dictating prices to them by “baking fees into the price”. Price transparency gains customer loyalty and respect.

With InterPayments, the recoverable credit card processing fee is added to the final checkout page and labeled a transaction fee.

 8 Benefits to Price Transparency with Surcharging:

  1. Undercut the Competition: With surcharging, merchants have the option to lower prices and beat out the competition while still covering the cost of processing credit cards. At the same time, debit card users are no longer subsidizing credit card users.
  2. Freedom of Choice: With InterPayments, customers have the choice to pay via credit card or switch to another payment method, such as debit card.
  3. Lower Cost: Merchants will always have lower costs for debit card purchases vs. credit card purchases.
  4. Increase Cash Flow: Debit cards often settle faster which means that merchants have ready access to capital. At the same time, merchants can “recover” the cost of processing a credit card, returning up to 30% of the net margin back to the company.
  5. Lower Risk: Debit card payments are far less likely to be fraudulent accounts, and the fewer fraud claims result in lower overall processing fees.
  6. Superior Customer Service: Price transparency is respectful of customers. Customers who pay via debit card are no longer forced to subsidize credit card users and are offered an overall lower price.
  7. Guaranteed Compliance: InterPayments guarantees compliance with the 60+ jurisdictions that govern surcharging
  8. Puts You in Control: InterPayments is easy to activate and deactivate. Turn InterPayments on for the holidays, or leave it on and recover CC processing fees all year round.

The InterPayments Solution:

InterPayments seamlessly integrates with a merchant’s shopping cart and payment systems to allow customers to always see the lowest possible price; No “baked in” fees. This is the only fair and transparent method of pricing.

Request a demo

Feel free to request a demo or a free test of the InterPayments product on your site.

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