SURCHARGING

The Pain of Processing Fees

Credit card and payment processing fees are a daily frustration for many merchants. The ability to accept payments is a fundamental business need, but the fees charged for credit card purchases often seem exorbitant.

These fees gnaw away at profits, leaving many merchants with a sense of helplessness and deep-rooted irritation. The emotional toll of this financial strain can be significant, compounding the day-to-day challenges of running a business.

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An Intelligent Approach to Managing Credit Card Fees

Introducing Nexio Surcharging, a powerful addition to our suite of payment solutions designed to ease the burden of credit card fees on merchants.

With this feature, you can seamlessly add a 3% surcharge to eligible credit card transactions right at checkout, allowing you to offset the costs of credit card processing fees.

How Nexio Surcharging Works

The aim of surcharging is to offset processing costs merchants are charged by credit card companies. Nexio simplifies the surcharging process, making it easy and convenient for merchants to apply a fee at checkout.

01 – Transaction Analysis

When a card-not-present (CNP) transaction is initiated, Nexio’s robust platform evaluates the transaction to determine its eligibility for surcharging. The criteria used to assess eligibility include:
 

  • CARD TYPE
  • CARD BRAND
  • CUSTOMER’S BILLING ADDRESS

02 – Surcharge Recommendation

Based on the data gathered, Nexio sends a surcharge recommendation to your payment system.

03 – Surcharge Application

Merchants can choose to apply or ignore the surcharge recommendations.

04 – Customer Notification

If the surcharge is applied, the customer will see the updated total — with the surcharge included — before completing the checkout process. These steps are executed in just a matter of seconds, ensuring a smooth customer experience.

Take Control of Credit Card Fees with Nexio Surcharging

With Nexio Surcharging, you can turn a financial burden into an opportunity for cost savings. Our solution helps merchants manage processing fees easily and transparently, providing a valuable tool to improve the bottom line.

Don’t let credit card fees eat away at your profits any longer. Take control of your business finances with Nexio Surcharging today!

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Surcharging FAQs

What are the benefits of Nexio Surcharging?

COST SAVINGS –
With Nexio Surcharging, you get the power to offset those pesky processing fees. You can recoup costs that would otherwise be lost to credit card transaction fees. This translates to a healthier bottom line for your business.

EFFICIENCY –
Our process eliminates the need for guesswork. Our recommendations make it a breeze to manage transactions. This saves you valuable time and resources, so you can focus on what matters.

LESS STRESS –
Say goodbye to the nagging stress of losing money with each purchase. You can shift your energy from worrying about the bills to innovating and connecting with your customers.

How will my customers react to surcharging fees?

While surcharging provides tangible benefits such as increased revenue and profit margins, it’s worth noting that it could potentially lead to lost sales. Some customers may perceive surcharges as an extra cost and abandon their purchase.

Before enabling this feature, you must carefully weigh the pros and cons of credit surcharging. You’ll want to consider factors such as:

  • Customer perception
  • Market competitiveness
  • Potential impact on sales
  • Overall customer satisfaction

You want to balance maximizing profits and maintaining a positive customer experience.

What transactions are eligible for a surcharge fee?

Nexio Surcharging is only applicable to card-not-present (CNP) credit card transactions. Debit cards, prepaid cards, and other forms of payment are not subject to surcharges. Additionally, certain credit card types or issuers may not be eligible for surcharging due to contractual agreements. 

Surcharging laws vary from state to state and are based on the customer’s billing address. There are states where surcharging is not eligible:

  • Connecticut
  • Maine
  • Massachusetts
  • Oklahoma

Colorado enforces a 2% maximum surcharging fee. 

Nexio Surcharging is designed to recognize these limitations and will automatically refrain from suggesting surcharges in states where it’s prohibited or limited. 

What are the surcharging rules and laws merchants must adhere to?

Surcharging rules and regulations vary state by state and depending on the card network. The following rules are the most common:

  • Merchants must inform their payment processor at least 30 days before implementing surcharging.
  • Merchants must register with Mastercard at least 30 days before implementing surcharging. Visa, Discover, and American Express (Amex) do not require registration.
  • Merchants must disclose their surcharging policy at the point of store entry and the point of sale before purchase. For online or CNP transactions, the merchant must disclose the surcharging policy on the first page referencing credit card brands. The policies must be clear, consistent, and prominent. For online disclosures, you must use at least 10-point Arial font.
  • The surcharge fee must be included in the total transaction amount and listed separately on the customer’s transaction receipt (like tax or shipping).

Please be advised that Amex has stricter regulations than Visa, Mastercard, and Discover. There are situations where you can be in compliance with Visa and out of compliance with Amex. While Nexio Surcharging was programmed to consider all these rules and regulations when providing recommendations, it is still your responsibility to ensure compliance.

How do I implement Nexio Surcharging?

Our surcharging feature utilizes its own API endpoint and requires some development work to implement fully. This allows you to customize this feature to your specific needs.