Chargezoom, which works in managing customer payments on a single dashboard, has announced a new feature to let businesses instantly surcharge credit card transactions through an integration with Payroc's RewardPay, according to a press release.
Surcharging is used more often lately in response to higher credit card fees, including from big companies like Visa, Mastercard, Discover and American Express. Businesses, as such, need to partner with those they trust to help handle that process and pass the costs along to their customers, the release stated.
Surcharging can let businesses divert the surcharge costs onto customers rather than the merchants, helping them to save expenses during the pandemic and its economic woes, the release stated.
Businesses using surcharging are subject to complex rules, and without a high-tech system in place, many have to use manual adjustments that can suck up time, according to the release. Chargezoom's work with Payroc helps determine immediately if the card type can accept a surcharge, process the fee as needed, and then update invoice records. Purchases automatically surcharged with Chargezoom are also automatically reconciled into a business's accounting software.
“To be compliant with the process of surcharging is a big deal for businesses today…,” said Matt Dubois, CEO of Chargezoom, according to the release. “Given the rules and regulations around surcharging, such as which type of credit cards and which U.S. states allow for legal surcharges, Chargezoom combined with Payroc’s RewardPay integration is able to automatically detect if a card can be legally surcharged, saving businesses both time and money.”
PYMNTS reported that surcharging has seen a boost during the pandemic after being barely used before the pandemic. Now, it's becoming almost a mainstream practice as consumers seem to be paying surcharges without hesitation, although many customers duck them by paying with debit or fee-free cash.
