SurchX, a technology company that enables merchants to recover losses from credit card processing fees, today announced that its fee recovery product is now available to merchants operating in the United States. SurchX is hoping to solve one of retail’s biggest challenges – staying profitable in an increasingly commoditized world.
With the world’s first interchange fee recovery platform, SurchX’s API uses sophisticated algorithms that enable retailers to securely pass merchants’ fees for credit card transactions onto the customer, while staying compliant with 67 regulatory bodies in the United States.
U.S. consumers are increasing credit card use at an alarming rate. Nearly every payment processor tacks on a processing fee, which adds an associated cost to each transaction. These credit card processing fees average 3% of the purchase price and are paid by the merchant to the credit card company. With nearly 101 million credit card transactions each day in the U.S. averaging $8.9 billion in value, merchants are losing $267 million per day on the whole.
"The challenge for merchants – small and large – is that they have no control over credit card processing fees and the costs continue to go up,” said Robert Maynard, founder of SurchX. "What they don’t realize is they’re able to collect their merchant processing fees from their customers. Our research shows that 98% of consumers say they have or would pay that fee. The impact on sales is immaterial, while the opportunity to improve margins is significant – around 30%. Simply put, SurchX gives ecommerce and telephone sales merchants a simple way to increase margins and stay compliant, without sacrificing sales, service or customer satisfaction."
With no additional hardware, investment or complex software integration necessary, SurchX is a simple tool that solves for a highly complex challenge. SurchX’s API is built on a data set that pulls from all payment processor interchange fee information. When a customer pays with a credit card, the SurchX platform instantly identifies the card being used, what the fee on that card is, and how much the business can legally charge back to recoup that fee loss. The fee is then added to the customer’s total purchase price as a processing fee. Prior to SurchX, there was no way for businesses to recoup any of these fees back from customers while remaining in compliance. SurchX works with most shopping carts and requires no change in processors or other infrastructure. Most implementations can be completed in less than a day. There is no out-of-pocket expense for most merchants.