PayJunction Adds Credit Card Surcharge Capabilities to Payment Acceptance Tool

PayJunction added credit card surcharge capabilities to its No-code Payments Integration platform.

With the addition, independent software vendors (ISVs), developers and merchants can add credit card surcharging to Software-as-a-Service (SaaS)-based software in minutes, the tech-focused payments company said in a Tuesday (March 5) press release.

“We’re excited that our revolutionary no-code solution is being used to unleash savings for businesses of all types,” PayJunction President Randy Modos said in the release. “This demonstrates our commitment to helping partners and customers respond quickly to evolving industry trends.”

The company’s new browser extension enables users to add credit surcharge capabilities in minutes, according to the release. The solution eliminates the need for custom coding, testing, certification and release cycles that can take months.

It also offers a solution for cases in which payment providers don’t support surcharging across every acceptance channel, as it can be added to any SaaS application, the release said.

With these capabilities, users can add a surcharge of up to 3% that will help offset their credit card transaction fees, per the release.

“Surcharging permits businesses to offset a small fee to process transactions when a customer pays with a credit card,” PayJunction said in the press release. “Surcharging cannot be applied to debit cards, cash, checks, prepaid cards or ACH bank payments. Businesses leveraging surcharging must properly disclose the fee to customers.”

These new capabilities join PayJunction’s No-code Payments Integration that was launched in August and enables secure payment acceptance for purchases made in-person, over the phone, with digital invoices and for recurring payments, the release said. The new credit card surcharging is available across all these methods.

PYMNTS Intelligence found that legal obstacles to credit card surcharges have been dropping for much of the past decade, and merchants are looking to implement these surcharges to increase their income by a few percentage points and cover their card processing costs.

Approximately 9% of cardholders who used their cards at restaurants or retail stores during the month before being surveyed said they had been asked to pay surcharges on credit card transactions, according to the PYMNTS Intelligence report “Credit Card Surcharges: What Merchants Can Do to Maximize Income.”