What is a Credit Card Surcharge?

If you’re like most people, you probably have a few credit cards. You might use one for everyday purchases, one for emergencies, and another for big expenses. But do you know what a credit card surcharge is? Continue reading this useful clear credit article, to find out more!

If you often use your credit card, there are specific locations where you’ll be charged an additional fee. For example, using a credit card at some cafes will cause the overall purchase to cost more.

Understandably, most people despise credit card surcharges. It might appear unjust to be penalized as a customer for selecting one payment method over another. Nevertheless, you’ll find that many merchants charge a fee on credit card payments totalling up to 1-3 percent of the transaction value.

It’s comforting to know that your favourite café doesn’t profit from charging a surcharge on credit card payments. They are only passing on the fee charged by major credit card networks for processing these types of payment.

Typically, each time you swipe your card at a café or any physical or online store, the merchant is required to pay a small fee for offering this convenience to you.

They then charge you a surcharge that allows them to pass on this cost to you and not eat into their margins or profits. However, it’s at the merchants’ discretion whether to charge a credit card surcharge fee or not. That’s why you pay what you see with some retailers, and some others ask you to pay extra when you use a card.

A good credit score is important to have if you want to be able to finance a large purchase, like a car or a home. You also need a good credit score to get approved for certain types of loans and lines of credit.

Having poor credit can feel like being caught in quicksand, but there are options available that can help you get back on your feet. Clear Credit Solutions is a credit repair service specializing in removing negative listings from your report so that applying for finance becomes possible again. Get in touch with us today to see how we could improve your situation with our clear credit process!!