Solupay Blog

How to Increase Profit Margins with Surcharging

Posted by Jayme Moss on Oct 31, 2014 4:26:10 PM

For some businesses and industries, adding credit card surcharges to purchases can prove to be a huge help to the bottom line of that business.  Regulated merchants with already low profit margins, such as liquor stores, have historically preferred or even required cash only for transactions involving liquor.  Why? In Ohio the Department of Commerce, Division of Liquor Control caps profits for liquor stores at roughly 5%. Once you add in the expense of credit cards, the margins practically evaporate.To survive, these businesses need to rely on higher margin items such as beer, wine and even candy bars to operate profitably.

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Topics: Surcharging