“The coronavirus accelerated the shift, sending businesses in search of revenue to make up for sales lost in the pandemic’s early months. CardX LLC said more than 6,400 merchants—most of them online businesses—use its surcharge-calculating software, up from 4,030 a year ago and 2,380 in 2019.
Westenbroek Mower Inc., which sells lawn mowers, snowblowers and other outdoor power equipment, began surcharging about two years ago.
Wendy Timmer said that she and her husband Travis, who owns the Holland, Mich., business, initially worried that customers would get upset. But the alternative was increasing prices for everyone, including those who pay with cash, she said. Credit-card fees were ‘one of the fastest increasing segments of our business cost wise,’ she said.
A sign by the register says that customers paying with credit cards will be charged more. They also remind customers when they pull out a credit card that they will pass the card companies’ fees onto them. Many shoppers switch to paying with debit cards, Ms. Timmer said. Some go home to get their checkbooks.
Ms. Timmer said the company is saving tens of thousands of dollars a year as a result. ‘It was single-handedly one of the best decisions that our company has ever made,’ she said.”
