Understanding Credit Card Fees and Surcharging in Your Laundromat

Credit cards have become a standard payment method for nearly every retail business, including laundromats. Customers value convenience, and offering card payments makes your store more accessible and modern. But as every operator knows, accepting credit cards comes with processing fees — and managing those fees is an important part of running a profitable store.

While no one likes paying credit card fees, there are ways to minimize your cost and, in some cases, pass those fees on to customers responsibly and legally. Here’s what laundromat owners should understand about surcharging and credit card costs.

Why Credit Card Fees Exist

Every time a customer uses a credit or debit card, your store is charged a processing fee by the merchant provider. These fees vary based on:

• Your merchant provider
• The card type (credit, debit, rewards card, etc.)
• Your store’s processing volume

While you can and should negotiate your rates, card fees are ultimately unavoidable. They are simply part of offering a modern convenience that customers expect.

Passing Fees to Customers: Is It Allowed?

Years ago, credit card companies prohibited businesses from passing card fees on to customers. Today, that has changed. In many states, it is legal for retailers — including laundromats — to apply a surcharge that covers the cost of accepting card payments.

However, each state has its own rules and requirements. Before enabling surcharging, laundromat owners should research local laws to ensure compliance.

Cash Discount vs. Surcharge: Why the Wording Matters

One important requirement in many states is how the fee is described. Instead of labeling it as a surcharge for using a credit card, businesses often refer to it as a cash discount.

In practice, this means:

• Cash price = lower price
• Card price = cash price + processing cost

This framing aligns with regulatory guidelines and is widely accepted across several industries.

Proper signage is required, and customers must be informed at the point of purchase. Modern payment systems can automatically calculate and apply these fees so the process is seamless and transparent.

How Surcharging Works in Modern Laundry Systems

With the right payment provider, surcharging can be built directly into your system. For example, CCI software can automatically:

• Identify credit card transactions
• Apply the appropriate surcharge or cash-discount adjustment
• Pass the fee to the customer
• Ensure pricing compliance based on your configuration

This allows laundromat owners to accept credit cards with net-zero impact on profitability — a significant advantage for stores operating on tight margins.

Should Your Laundromat Use Surcharging?

The answer depends on your market, your customers, and your pricing strategy. Consider the following:

• Profit margins — Are credit card fees meaningfully affecting revenue?
• Customer tolerance — Will your community accept an added fee for convenience?
• Competitive environment — Do nearby stores charge surcharges?
• Local laws — Is surcharging permitted in your state?

For many stores, passing along the cost of card processing makes financial sense — especially in an era when customers increasingly prefer cashless payments.

The Bottom Line

Credit card acceptance is essential for today’s laundromats, but the associated fees can eat into margins. Surcharging, when implemented properly and legally, offers a practical way to offset those costs without raising overall prices.

If you decide to pursue this option, be sure to:

• Research state regulations
• Use accurate “cash discount” terminology
• Post proper signage
• Work with a payment system that supports compliant surcharging

With the right approach, you can offer customers the convenience they expect while maintaining the profitability your business needs.

About CCI

For the past 25 years, Card Concepts Inc. (CCI) has helped over 4,000 laundries automate operations, modernize payments, and maximize profit potential so owners can work on their business instead of in it.