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Inbound Logistics Features CardX: “Distributors, Shippers Eye Surcharging to Stay Afloat Amid COVID-19 Outbreak”

“Surcharging can be an essential tool for distributors in these uncertain times, adding up to 3.5% to their bottom lines. Forty-six states across the U.S. allow surcharging on credit card payments, which especially helps merchants with high average sales and tight margins. For a distributor, with EBIT margins hovering around 6%, a customer using a credit card can eliminate half or more of a sale’s profitability.

Yet, despite the benefits of surcharging, many distributors still aren’t aware that surcharging is a viable option for their businesses or are overwhelmed with compliance regulations. To make surcharging work for their businesses, warehouse and distribution companies can turn to payment solution providers to comply with the rules, handle the implementation details, and align internal technology with compliance teams.”

Read the full article here.