UPS informed me yesterday that they would start charging me a surcharge for using a credit card.
At first, I was a little frustrated, but then I realized I had options. I could change to a debit card or ACH so I don't have to pay a fee or use a credit card that offers more than 2% cash back, so the cost is moot. Plus, I am surcharged at many places and am starting to get used to it.
Passing credit card processing costs to customers is gaining steam in golf, as the savings can be meaningful. UPS's 2% surcharge would equal $20,000 in annual savings for each $1,000,000 processed by credit cards. That's another 400 rounds of golf annually at $50 to match the savings, so it's not nothing.
Surcharging is not new in golf, as courses already pass some of the cost on to golfers to save money, but interest is growing.
So, what are course owners and operators asking us? We primarily get three questions, which I've added below with answers.
1. How does the course ensure they adhere to the surcharging rules and regulations?
Following the regulations can be time-consuming, as some states don't allow surcharging, certain cards cannot be charged (debit and charge cards), and there are posting requirements, among other requirements.
- In our opinion, the easiest way is to use golf management software with an integrated credit card processor, such as Fiserv, where your GMS has developed the surcharging integration technology to support automated surcharging.
- Automated surcharging automatically knows which cards can be charged and which cannot when swiped (taking pressure off the employee and business), where to assign the fee (customer or course), and shows the charges on digital devices and receipts.
- The course still has requirements, such as posting that credit cards will incur a surcharge, so consumers can use cash or debit to avoid the charge.
2. Would it be better to increase the cost of golf by a small amount on every round so I don't upset customers?
- This is a business decision by the course, and we support whatever the course feels is best for its business. Our job is to provide technology solutions, but it is always the business owner's decision on how they want to operate their course.
3. Do you offer surcharging?
- Yes. We are fully integrated into Fiserv's automated surcharging technology. This allows courses to surcharge without worrying about handling it manually. We also provide the required disclosures the course needs to display at their course.
Surcharging is gaining popularity as businesses try to offset rising costs and increase profitability. If you are considering surcharging, please talk with your software provider to learn more about automated surcharging and to see if it's right for you.
