Pricing Policy
Creating a pricing policy for credit card payments involves considering several factors such as transaction fees, your target market, and competitive pricing. Here’s a general framework you can use to develop your policy for Ekhlas Designs & Marketing:
1. Understanding Transaction Fees
Credit card companies charge a fee for processing payments, which can vary depending on the provider. These fees generally include:
Interchange Fees: Paid to the card-issuing bank.
Assessment Fees: Paid to the card network (e.g., Visa, Mastercard).
Payment Processor Fees: Paid to the company that processes the transaction.
2. Decide Who Bears the Fee
You can either absorb the transaction fee as a business expense or pass it on to your customers. Options include:
Absorbing the Fee: Increase your product/service prices slightly to cover the cost.
Passing the Fee to Customers: Charge an additional fee (e.g., 2-3%) for credit card payments.
Hybrid Approach: Offer a discount for cash payments or charge a fee for credit card payments.
3. Competitive Pricing Analysis
Analyze how your competitors handle credit card payments. This can give you an idea of industry standards and customer expectations.
4. Transparent Communication
Clearly communicate any fees associated with credit card payments to your customers. Transparency builds trust and avoids potential disputes.
5. Legal and Compliance Considerations
Ensure your policy complies with local regulations and credit card network rules, which may have specific guidelines on surcharging.
Policy for Ekhlas Designs & Marketing
1. Absorbing the Fee
If you choose to absorb the fee:
No Additional Charge for Credit Card Payments: All prices listed include any applicable fees for credit card processing.
2. Passing the Fee to Customers
If you decide to pass the fee on:
Credit Card Surcharge: A surcharge of 2.5% will be added to all transactions paid via credit card. This fee covers the cost of processing the payment.
No Surcharge for Other Payment Methods: Payments made via cash, check, or bank transfer will not incur this surcharge.
3. Hybrid Approach
If you opt for a hybrid approach:
Credit Card Surcharge: A surcharge of 2.5% will be added to all transactions paid via credit card.
Discount for Cash Payments: A 2% discount will be applied to all transactions paid in cash.