Common Misconceptions: Card Surcharges
You may have noticed a growing trend at checkout counters—signs that say “A fee will be added for credit card purchases.”
It’s a fair question, and one we hear often:
Does my bank get that extra fee?
The short answer is no.
Community banks do not receive revenue from merchants that choose to add a surcharge for card payments.
Let’s break down how this really works.
What Is a Card Surcharge?
A card surcharge is an additional fee a merchant may add when a customer chooses to pay with a credit card. Merchants sometimes do this to offset the processing costs they pay to accept card payments.
These costs can include:
- Interchange fees
- Network assessment fees
- Payment processor fees
Who Actually Receives These Fees?
When a merchant charges a surcharge, that money typically goes toward covering costs imposed by:
- Card networks such as Visa, Mastercard, Discover, and American Express.
- The merchant’s payment processor or merchant services provider
Community banks are not the beneficiaries of these surcharges.
Banks do not:
- Set the surcharge amount
- Require merchants to charge a surcharge
- Receive the surcharge revenue
Why Do Merchants Choose to Add a Fee?
Accepting cards provides convenience, speed, and security—but it also comes at a cost to the business. Some merchants choose to:
- Absorb those costs into their pricing, or
- Pass a portion of the cost directly to customers who use credit cards
This is a business decision made by the merchant, not the bank.
What About Debit Cards?
In many cases:
- Debit card transactions cannot be surcharged under card network rules
- Debit card fees are often lower than credit card fees
That’s one reason some merchants encourage customers to use debit or cash.
The Role of Community Banks
Community banks focus on:
- Providing secure payment services
- Supporting local businesses and customers
- Ensuring compliance with card network rules and consumer protection laws
While banks facilitate the payment process, they do not profit from merchant-imposed card surcharges.
Our Commitment to Transparency
At your community bank, we believe in clear communication and fair banking practices. If you ever have questions about:
- Card payments
- Fees you see at checkout
- How electronic payments work
We’re always happy to help explain.
Bottom Line
If you see a surcharge at a store, it’s set by the merchant—not your bank.
Community banks don’t receive that fee, and we remain committed to serving our customers with transparency and trust.
Better banking starts with better understanding.