Surcharging advice for Card Processing

[dancody1979]

I am unsure whether to add a surcharge to my products to include the cost of card processing currently 2.6% + 20p. I have read the forums and understand that I can as I am in the UK.

 

The reason I want to include the fees is that as I am selling computers and components the margins are small e.g. buy computer for ?632.15 sell at s.r.p ?683.85, if I sold cash then profit is ?51.70 but when you take 2.6% + 20p (?17.98) from the sale the profit is only ?33.72. Some margins on cheaper systems are even smaller from my current supplier (I am currently looking for alternatives).

 

I am worried that a card processing charge will put customers off especially if it was at the full rate, I have considered using a reduced rate, half the rate or recouping some of the cost through packaging costs.

 

I would welcome any suggestions especially from users in similar industries with small profit margins.

[Guest]

I work for a bank in Canada and we do not allow our clients to charge extra. I would suggest that check with your bank or credit card processing company & ask them what the rules are.

 

If we receive complaints from client that the merchant is charging extra for no reason, they run the risk of loosing their machine or processing abilities....

[Guest]

That's nice if your laws allow it. My motto has always been free, free, free! Yes, I charge a premium for my products, but everything is free; shipping, handling, packaging. Yes, the cost is added to my products up front, but people love to see that FREE word. They spread the word about it, too. The only problem you may have is that you're probably selling the exact same product as your competition right down to the model number and manufacturers warranty. Can you distinguish yourself in some other way? Faster shipping? More attentive service?