Balance Introduces Surcharge Fee Option for Credit Card Transactions
Balance, a provider of B2B payment processing solutions, has announced the launch of a surcharging program that aims to alleviate credit card burdens for merchants.
The new capability enables suppliers to add a surcharge fee to credit card transactions, allowing them to improve their profit margins and offer customers payment choice, Balance said in a Monday (July 10) press release.
The announcement comes in response to the need for surcharging by nearly two-thirds of merchants, according to the release.
“Merchants need to operate in a favorable payment environment, where the cost of accepting online payments does not outweigh their value,” Balance Vice President of Product Nir Gazit said in the release. “Balance’s surcharging program enables B2B merchants to effectively meet the needs of customers that want to pay with credit card while ensuring appropriate operating margins for their business.”
The new surcharging program enables merchants to customize the fee for specific customer segments or order values, according to the release. Additionally, it has been integrated into the invoice and checkout process.
The program helps merchants minimize the risk of lost customers, improve efficiency, grow their businesses, and unlock new revenue streams, the release said. At the same time, customers can pay with credit cards without encountering any disruption.
“Businesses are hindered in their growth by paper-driven processes, inflexible payment costs and missed sales opportunities,” Balance CEO and Co-founder Bar Geron said in the release. “Our commitment lies in overcoming these obstacles through B2B-first payment technology that actively encourages the adoption of online payments.”
PYMNTS research found that while it is not unheard of for businesses to make B2B payments with credit or debit cards, these methods are used nowhere near as often as paper checks and automated clearing house (ACH).
Interchange fees are one reason for this, according to the “Innovating B2B Payments Playbook,” a PYMNTS collaboration with MSTS, now TreviPay.
The report found that while these fees may seem small — usually less than 1% — they can add up in B2B transactions in which the payments themselves total $10,000 or more.
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