No Contract Required
SurchX does not require its users to sign a new merchant account contract in order to use its services because it is not a conventional merchant account provider. Instead, SurchX is a software solution that interacts with a merchant’s existing payment processing environment to add a surcharge to each sale processed through the merchant’s online store. This surcharge is intended to offset the per-transaction fee charged by the merchant’s existing processor, hence the company’s claims that it is “free.” However, SurchX fees do include a portion of each surcharge for itself whenever possible in order to generate revenue.
Using SurchX For Retail
SurchX does not publicly state whether it is intended for retail use, but all of its marketing copy refers to the use of APIs and shopping cart integrations in order to add surcharges. It would be very labor-intensive for the company to reconfigure each merchant’s in-store terminal to apply surcharges without involving the merchant’s existing provider. For this reason, merchants should primarily expect to use SurchX in conjunction with a low-cost e-commerce merchant account if they want to receive the greatest benefit. We encourage merchants to check out our list of the providers of thebest merchant services.
No Red Flags, But No Disclosure
The SurchX rates and business model is unique within the credit card processing industry. Most companies offering “zero fee” or “cash discount” pricing require merchants to switch their merchant accounts in order to correctly apply and collect surcharges. SurchX is attempting to add its product to existing checkout flows in order to make surcharging easier for all businesses, regardless of provider. This approach raises a number of questions that are not addressed on SurchX’s website or its public statements. For now, we will take the company at its word, but we welcome feedback from SurchX users regarding the company’s surcharging schedule, its monthly and annual costs, and its compatibility with other payment processors.
