Introducing surcharges can be tricky. Business owners worry about negative customer reactions, but the reality is that with the right communication, surcharging can be both accepted and beneficial.
What Is Surcharging?
Surcharging is when a business adds a small fee to transactions paid with credit cards to cover the cost of processing. This practice is legal in Canada, provided businesses follow specific guidelines.
Tips for Smooth Customer Communication
- Be Transparent: Clear signage at the point of sale and on receipts helps customers understand upfront.
- Frame It Positively: Instead of focusing on the fee, explain that it’s a way to keep prices lower for all customers.
- Train Your Staff: Equip employees with simple scripts to explain surcharges confidently and politely.
- Offer Payment Options: Make sure customers know they can avoid the surcharge by paying with debit or cash.
- Highlight Industry Norms: Surcharging is becoming more common. Let customers know it’s a standard practice across many industries.
Handling Objections
If a customer objects, listen empathetically. A simple, calm explanation usually resolves concerns: “We added a small surcharge to cover credit card processing fees, which helps us keep our overall prices competitive.”
Final Thoughts
Surcharging doesn’t have to hurt your business. When explained clearly and professionally, most customers will understand—and continue to support your business.
