Running a dealership or repair shop means every customer interaction matters, especially when it comes to payments. If your business is adding a credit card surcharge to offset processing costs, it’s critical that your staff understands the rules, communicates clearly, and avoids costly mistakes.
This checklist will help you train them to get it right every time. And, if you’d like printable surcharge training materials (that check every box on this list) to pass to your staff, you can download that here.
Want to see if your shop is surcharge ready? Check for the following.
1. Staff Know What a Surcharge Is
A surcharge is a small fee applied only when customers pay with a credit card. This helps cover the high cost of credit card processing, offering customers a choice to pay the fee without raising prices for everyone. Your staff should know that:
- Credit cards are charged a small fee to offset payment processing costs
- Surcharge fees must never be more than 3%
- Debit cards, prepaid cards, HSA/FSA, cash, and ACH payments cannot be surcharged
- Customers always have a choice of payment method
2. Staff Know What a Surcharge Is
Breaking surcharge rules (even by accident) can mean serious trouble for your business. Card brands and state regulators can fine you up to $25,000 per violation, suspend your ability to accept cards, and damage your reputation in the community.
Secret shoppers may visit your business at any time, so your team needs to know that paying attention to details is not optional. It's essential to take it seriously to protect both your customers and your shop.
3. Staff Keep Required Signs in Place
You are responsible for providing the correct surcharge signs, but your staff must make sure they stay posted and visible. This includes:
- Point-of-entry sign: At the main entrance, stating that a surcharge applies to credit card payments.
- Point-of-sale sign: By the cashier, service desk, or anywhere payments are processed.
- Receipt disclosure: Must list the surcharge and note it applies to credit only (PayJunction handles this automatically).
- Invoicing (optional): Surcharge disclosure may also appear on customer billing statements, depending on your system.
Staff should know to check these signs daily and report any missing signs immediately.
4. Staff Use the Right Words with Customers
The way your staff explains the surcharge matters just as much as posting the signs. Train them to use one simple phrase every time:
“Credit has a small fee. Debit, cash, and ACH do not if you’d like to avoid the additional charge.”
This lets customers know about the fee before they pay, avoids confusion, and gives them the choice to switch payment methods. Role-play this with your staff so they’re comfortable saying it naturally.
Additionally, if your business takes card-not-present transactions, like a phone payment, be sure you communicate all of the surcharge details before someone pays, for example:
“If you use a credit card, know that it comes with an additional surcharge at __%, which will be $___ for this transaction.”
Staff should always empower customers to choose their preferred payment method and should never hide the surcharge.
5. Staff Let the System Handle the Details
If you’re using a system like PayJunction’s SmartSurcharge, it will:
- Detect credit vs. debit automatically.
- Apply the surcharge only when allowed.
- Print the required disclosure on receipts.
- Give customers a chance to change payment methods before finalizing.
Train staff to never override the card type and to always allow customers to switch to another method if they choose.
6. Staff Avoid the Most Common Mistakes
Small mistakes can cause big problems. Make sure your staff can easily explain their essential responsibilities to:
- Never apply a surcharge to debit.
- Always disclose the fee before payment.
- Never say “we charge extra for credit” without context, but instead explain that debit, ACH, and cash don’t have the fee.
- Always allow customers to switch payment methods without penalty.
- Check that signs are posted in the proper places.
Ensure that staff know that surcharging is not something the business is trying to push, customers have the freedom to avoid the surcharge entirely by using a debit card. There is no reason to push credit over debit, especially for businesses that also take advantage of PayJunction's PIN Debit Interchange Plus pricing to reduce debit costs as well as credit costs.
7. Staff Follow Any State-Specific Rules
Some states, like New York and Colorado, have their own surcharge laws:
- New York: Must show both credit and cash prices clearly
- Colorado: Use specific state-mandated signage wording
If you’re in one of these states, your staff should follow any extra signage or price display rules you’ve provided. They don’t need to memorize every regulation, but they do need to follow your instructions.
8. Staff Know What to Do If They’re Unsure
If the customer has questions or your staff isn’t sure about something, they should stay calm, explain that the surcharge is legal and disclosed, and offer the option to pay a different way. If they still feel unsure, they should call you (or the PayJunction support team if you use SmartSurcharge) before guessing.
Your Staff is Essential for Surcharging Compliance
Training is not a one-and-done activity. Check in regularly with your staff to make sure signs are in place, they’re using the right language with customers, and they’re confident handling payment questions. Recognize those who get it right and use real situations as learning opportunities for the whole team.
Don’t forget, if your company uses PayJunction’s SmartSurcharge, your staff is never on their own. You have access to an award-winning, U.S. based support team that picks up the phone in under 60 seconds on average. Whenever your staff has a quick question, needs help troubleshooting, or just wants to double-check a compliance detail, help is always just a call away.
Between a supportive payment partner and fully trained staff, surcharging should never be a headache for your business, just a way to manage rising costs.
Ready to Connect with a Payment Partner that Makes Surcharging Simple? Let's Chat.
