Let’s not beat around the bush. With cost-of-living pressures and other economic challenges, small business owners are doing it tough. Anywhere you can save money in your business is a good thing.
One way to save is by surcharging, or passing the cost of merchant fees on to your customers. And it’s probably much easier to implement than you think.
Let’s explore surcharging and discover if it’s the right way to help you save money in your business.
But should they be worried, or should they go for it? And more importantly, should you?
A visit to your local shops will show you how prevalent surcharging has become. But there’s also data to back this up. In 2022, 7.1% of in-person card payments included a payment surcharge. This increased from 4% in 2019, a significant rise given the volume of card payments processed each year.
Interestingly, in that same period between 2019 and 2022, consumers have become more open to the concept of surcharging. There has been a large increase in the number of consumers who are willing to pay a surcharge for the convenience of using their preferred payment method.
Customers who use Smartpay Smartpay Zero CostTM EFTPOS are saving thousands of dollars each year through surcharging. One of those customers is Cafe Oliveto, saving $6,000 a year without losing any customers. But don’t just take our word for it. Visit other shops in your area and find the ones that surcharge. Ask them about their experience and if they have recommended surcharging to any other businesses.
“98% are happy to pay the surcharge. Customers don’t care as long as you provide good food and good service – that is what they want.”
– Kumar, Cafe Oliveto
If you decide not to surcharge – that is, to maintain your status quo – it’s not only the cost of merchant fees that you need to consider.
There’s the time you’ll spend reconciling bank statements. And the sales you might lose because you don’t offer facilities for a specific type of card.
Sit down and do the maths to work out how much you’re paying. Also, include the time you spend on the reconciliation of accounts. You might be shocked at just how much it’s costing you.
Surcharging improves your cash flow. The savings are real and so is the impact the extra cash can have on your business and your customers.
Think about how you might use the extra funds in your business. Maybe the savings will help you to keep your prices down. Or you might invest them in a customer loyalty program. Or perhaps you can attract more customers through advertising, by improving your facilities or introducing new products.
For your customers, it’s a small – or rather, tiny – price to pay. But for you as the business owner, every surcharge adds up to significant savings that can help you propel your business forward. Everyone wins.
If you really want to know if surcharging is right for your business and customers, why not test it? With Smartpay Zero CostTM EFTPOS, you can easily switch surcharging off at any time if you discover it’s not right for you. But you won’t know unless you give it a go. You might be surprised at the result. In fact, we’re confident you will be.
If you’re ready to find out more about surcharging and how it could help your business get in touch with the team at Smartpay.
Want to know more about surcharging?
Surcharging on EFTPOS is a simple way to save in your business. And we’re here to help you do it. Get in touch with the team at Smartpay team to find out how it works and how much you could save.
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