Calculator
Surcharge impact calculator
Estimates only. Educational only; not legal, tax or financial advice. No guarantee of savings or approval.
Debit is commonly excluded from surcharging, so it's not surcharged here.
Expected net impact per month
$1,027
If you lose more than the break-even share of credit card sales, the program stops paying.
Estimates only. Results vary. No guarantee of approval, rates or savings.
Talk with a payments specialistBest (½ reaction)
$1,387 / month
$16,648 / year
Expected
$1,027 / month
$12,321 / year
Worst (2× reaction)
$306 / month
$3,669 / year
Before you start any surcharge or cash discount program
- Rules vary by state, and card-network rules change.
- Customer reaction and competitor pricing matter as much as the math.
- Verify current rules with the card networks, your state and your provider before starting.
- This is not legal advice. Talk with your own attorney or advisor.
The formulas
Surcharged sales R = credit sales × (1 − switch % − lost %)
Fees recovered = R × surcharge %
Fees still owed = R × (1 + surcharge %) × effective rate
Lost profit = credit sales × lost % × gross margin
Net impact = current credit fees − fees still owed + fees recovered − lost profit
Worked example (illustrative numbers)
- Monthly sales $100,000; 60% credit; effective rate 2.90%; surcharge 3.00% (illustrative)
- 10% of credit customers switch to cash or ACH; 3% of credit sales are lost; gross margin 40%
- Surcharged sales R = $60,000 × 87% = $52,200 → fees recovered ≈ $1,566
- Fees still owed ≈ $52,200 × 1.03 × 2.90% ≈ $1,559 vs $1,740 today
- Lost profit = $1,800 lost sales × 40% = $720 → net ≈ $1,027 per month
Key takeaways
Common questions
Should I pass credit card fees to customers?
It depends on your margins, how customers react and the rules that apply to you. Use the break-even sales loss: if you expect to lose more credit card sales than that, absorbing the fee may be better.
Why does the calculator exclude debit cards?
Card-network rules commonly prohibit surcharging debit and prepaid cards. Confirm current rules with your provider.
Is surcharging legal in my state?
It depends on the state, and rules change. Check your state's current law and the card networks' rules, and ask your own advisor.
What do the best and worst scenarios mean?
Best halves your expected switching and lost sales; worst doubles them. It shows how sensitive the result is to customer reaction.
Does this include signage or setup costs?
No. Add any one-time costs separately and compare them with the monthly net impact.
Is a cash discount better than a surcharge?
Sometimes. Compare all three programs on the same numbers with the cash discount vs surcharge calculator.
Keep learning
Estimates only. Results vary. No guarantee of approval, rates or savings.
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