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Accepting the payment of consumer by debit and credit card means processing fees, which is consider part of business. Nonetheless for some companies, where profits are in low numbers, accepting payments by card is dire situation for them. As a matter of fact so many buyers consider buying through debit and credit card. If the retailers don’t accept them it may hurt their profit. That is the reason few retailers have introduce surcharges to cover upfront cost.
It is a malpractice in United States to charge surcharge on consumers. It is extra burden on them, it is the reason this practice if not followed. Whereas it is very common in different part of the world. Back in 2012 merchants won a legal battle against big giants Visa and MasterCard, which resulted in $6 billion settlement for merchants. Though this practice was not allowed in some other states. It became legal to add surcharges but within the bracket of specific guidelines. There are number of VAT Enabled POS Software in Saudi Arabia which may specify the surcharge amount.
Some organization which are profitable
Now the surcharge has become legal, there are multiple of organization including merchants which can benefit from using consumer by using merchant surcharging.
These enterprises include
- Not-for profits
- Small and medium size businesses
- Small stores
- Consumer should be updated regarding merchant surcharging fees on their credit cards.
Surcharge and Cash discounts
To further specify the guidelines, including New York and some other states have prohibited to collect extra charges in the form of credit cards but they are authorize to apply for cash discounts. Most VAT Enabled Point of Sales Software in Saudi Arabia can differentiate between surcharge and cash discount offers. Similarly retailers are claiming consumers to guide customers concerning about extra surcharge which has been narrow down while swiping through credit card companies. Moreover this option is by default in VAT Enabled Retail POS Software in Saudi Arabia but business owners have option to disable it.
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