Cardholders check credit card surcharges

According to Credit Card Surcharges, a collaboration between PYMNTS and Payroc, which surveyed 2,507 credit card users in the US, an average of 9% of cardholders were asked to pay a surcharge for their most recent credit card purchase at restaurants or retail stores.

Get the report: Credit card surcharges: How cardholders react to additional costs

Overall cardholder awareness of merchant surcharges is high, with 84% of cardholders aware that merchants may charge processing fees.

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Additionally, 90% of cardholders check their receipts from merchants for surcharges on some, most, or all of their credit card purchases. Seventy-one percent of cardholders check their receipts for surcharges after all or most of their credit card purchases, and another 19 percent do so on some of their purchases.

Cardholder awareness of credit card surcharges is high across all financial lifestyles, income levels and age groups covered by the survey. Millennials and Bridge Millennials are the most conscious generations among the generations. Cardholders who earn more than $100,000 per year have the most awareness among the income brackets. There is little difference in the perception of card surcharges across the three financial lifestyles captured in the survey.

Figure 2B

Twenty-one percent of cardholders say that paying a surcharge has negatively impacted their view of the merchant that caused them to pay that surcharge.

Additionally, 56% of cardholders who have had to pay a premium on their recent purchases say they would be “very” or “extremely” likely to switch merchants if asked to pay again.

Yet 85% of cardholders presented with surcharges agree to pay them.

Consumers have often used a different payment method specifically to avoid paying a surcharge. There are multiple payment methods they use as credit card alternatives to avoid surcharges, with 71% of cardholders using cash, 40% debit cards, 22% PayPay, 19% digital wallets, and 19% check.

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About: Forty-two percent of US consumers are more likely to open accounts with FIs that make it easy to automatically share their banking information during signup. The PYMNTS Study Account opening and credit management in the digital environmentsurveyed 2,300 consumers to explore how FIs can use Open Banking to engage customers and create a better account opening experience.

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