A key consideration for merchants considering implementing credit card surcharges is the impact of these fees on credit card users.
Having to pay a credit card surcharge has a negative impact on consumer satisfaction with approximately one in five cardholders who are asked to pay a surcharge.
In fact, 21% of cardholders who were asked to pay surcharges in their last transaction say it hurt their opinion of merchants, according to “Credit Card Surcharges,” a collaboration between PYMNTS and Payroc based on a survey of 2,507 credit card users in the United States. .
Get the report: Credit card surcharges
The demographics most likely to say a surcharge hurts their view of the merchant are baby boomers and seniors, those who don’t live paycheck to paycheck, and those with lower incomes. at $50,000.
Fifty-six percent of cardholders said they were very likely to switch merchants when asked to pay surcharges. Additionally, 47% of consumers who were not asked to pay surcharges on their last purchases say they would be very likely to switch merchants if asked to do so.
High-income consumers are more likely to switch than low-income consumers. This is true both for consumers who were asked to pay surcharges and for those who were not asked to pay surcharges on their last purchases.
Younger generations who have been asked to pay a premium are much more likely to consider switching than older consumers. Conversely, among those who were not asked to pay extra for their last purchase, older consumers are more likely than younger consumers to say they would be very likely to switch merchants if they were asked to do so.
Millennials are the second generation most likely to switch merchants when asked to pay surcharges; however, they are the second least likely to switch merchants if they were only hypothetically asked to pay extra.