Global Web, a leading payment processing firm, defines surcharge and briefly explains the rationale behind it. As consumers, we often encounter surcharges when we purchase products or services, so its important to understand what a surcharge is.
Familiarity with the term “surcharge” is hugely important, as we encounter surcharges on a consistent basis in the marketplace. Here, Global Web, a premiere payment processing company, clarifies what a surcharge is. In addition, Global Web examines some of the justification for implementing surcharges.
So, what is a surcharge? You have probably encountered surcharges on numerous occasion. A surcharge is the additional fee that customers incur when purchasing an item or service. Specifically, in addition to the price of the good or service that a customer expects to pay, there is an additional fee or surcharge that a customer faces.
Most typically, surcharges are applied when a consumer uses a credit card. For example, the surcharge is encountered during an online checkout, or when one uses an ATM machine. The surcharge is necessary, as it covers the cost of actually processing the customer’s order. What are some other reasons for surcharges? For example, in the transportation sector, it may be necessary for companies to charge customers surcharges which reflect the fluctuating cost of fuel. Or, in the food industry, a restaurant may add a surcharge to the bill for a large party, to cover the cost of the labor.
Another reason that companies charges surcharge fees is to encourage new customers to join them. For example, banks may charge non-members a surcharge fee when they withdraw money from said bank’s ATM machine. Banks do so to encourage non member to join them , and to encourage member to use their ATM machines, instead of other banks’ machines.
Thus, we encounter surcharges constantly as we purchase various items. Surcharges are generally small fees, but are quite unavoidable. The logic behind surcharges is that they cover an additional cost that the merchant incurs, or they are designed to encourage company loyalty. Global Web, a leading payment processor, consults merchants on all payment processing related matters, including surcharges, and looks forward to providing clients with outstanding products and services into the future.
About Global Web
Global Web was established in 2007 with a vision: To grant clients access to the absolute best subscription processing services at an affordable cost. Indeed, with Global Web, online vendors can safely and efficiently provide their customers with comprehensive subscription services. The company is based in New York City but operates on a global scale. Global Web may be contacted at (877) 855-1753 or via Facebook, Google+ or Blogger.
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