Credit Card Surcharges – Perspectives
Credit card surcharges are fees that businesses can add to credit card purchases (note: not debit cards) to help cover processing costs. It’s a tricky topic—some people feel the business should eat the cost, others think it’s fair to pass it on.
At Lightspeed, we get that every business is different, and there’s no one- size-fits-all answer. That’s why we give you the tools and flexibility to do what makes sense for your operation. If you’re considering adding a surcharge, here are a few things to keep in mind:
It’s About Cost Recovery
If you’re going to apply a surcharge, it’s important to be upfront with your customers. Let them know it’s not about making extra money—it’s simply covering what the credit card companies charge you. Framing it as cost recovery (rather than a “fee” or “penalty”) helps customers understand it’s about fairness.
And the more transparent you are, the better. Show how the surcharge is calculated, post signage at the point of sale, and make sure it appears clearly on receipts.
Customer Benefits
One upside to surcharging is it allows you to keep your pricing consistent for everyone. The recovered costs can go back into your business—whether that’s improving service, products, or the overall customer experience. You may not be able to explain all this in a quick transaction, but if there’s time or space, it’s worth sharing.
Keep the Language Clear and Professional
Avoid terms like “extra charge” or “penalty.” Stick to simple, straightforward wording so customers don’t feel caught off guard. Transparency and clarity go a long way in building trust.
Give Customers Options
If you offer surcharges, make sure customers know they can avoid them by using other payment methods—like debit cards, cash, or checks (if you accept them). It’s a good way to soften the message and show that you’re offering choices.
The Bottom Line
Surcharges aren’t for everyone, but if it’s the right fit for your business, Lightspeed makes it easy to manage. And if you ever need guidance, we’re here to help you weigh the pros and cons and roll out a policy that works best for your team and your customers.
Bryan Tierney
Bryan Tierney's journey with Lightspeed began over thirty years ago, sparked by a childhood passion for the Powersports industry. After spending Saturdays at a local motorcycle shop with his dad, he started working behind the parts counter, where his path to Lightspeed began. Today, Bryan is a vital contributor to Lightspeed's success, having authored numerous blogs, presented at major events, led webinars, and conducted thousands of product demonstrations. His dedication to the recreation industry, fueled by the same excitement he had as a young boy, makes him an invaluable asset to the team.
