As anyone who runs a business knows, whenever a customer swipes a credit card, the business is charged a fee to process that payment. In an increasingly cashless world, this means more and more would-be revenue going toward these fees every year, leading many merchants to wonder if they should be passing on that expense to their customers by charging a credit card processing fee, called a surcharge.

But is charging a credit card processing fee legal?

Originally published February 6, 2017. Republished July 30, 2018.

Every month, a slew of charges appear on your merchant statement, the bill you receive from your credit card processor which details the fees you were charged for credit card payments your business accepted. From authorization and transaction fees to chargeback and batch fees, you have a lot to keep track of. For example, you are likely paying a PCI compliance fee. Not sure what that is? We're here to explain it!

If you run a small business, then you’ve probably considered accepting credit card payments from your customers. With people carrying less and less cash every year, card payments are often more convenient for patrons, and can actually help grow your business. But how do you get a credit card machine?

Unfortunately, chargebacks come along with running a business. And while there are ways to prevent chargebacks, even successful and efficient businesses will experience them occasionally.

Merchant cash advance financing offers a different approach for business owners to receive funds for their organizations. It is not a loan—which obligates you to make a monthly payment until you pay back what you borrowed—but a lump sum of capital provided to you in exchange for a portion of your business’ future credit card sales.

There are a variety of credit card processing solutions available for merchants to utilize, letting them accept card payments, including credit, debit, EBT and contactless, from their customers. Each possesses its own unique attributes. While some are tailored to meet the needs of specific business types, others are viable options regardless of industry.

The Clover® Station is offered by leading credit card processing platform First Data, as well as the merchant services companies it’s partnered with. However, the Clover® Station is not just a payment solution; it’s a management system designed to help merchants overcome daily challenges they face.

Chargebacks are inevitable for merchants. Even if you follow all the necessary protection policies, there’s always a slight chance you'll have to face chargeback claims from customers.

These reimbursements of funds occur when a customer disputes a credit card purchase. In many cases, the charge is due to fraudulent activity, but there are also instances in which consumers challenge a purchase they knowingly made, or question one they can't remember—chargeback fraud and friendly fraud, respectively.

With multiple avenues of funding available for businesses in need of capital, selecting the most beneficial method can sometimes prove difficult. Although business loans are a commonly discussed option, not all merchants qualify for such funding, and some would rather look into alternative choices, anyway.