In parts of the country that have begun to open up, some businesses are adding “COVID-19 surcharges" to the bill. These are typically for additional cleaning or protective gear.
Ted Rossman is an industry analyst with CreditCards.com and he told KCBS Radio that line item charges tend to drive customers away.
“People are definitely upset about it,” Rossman said.
Rossman added, however, that a shift in perception could change consumers’ minds.
“I think a better approach for businesses would be to bake this into their prices,” he said. “Of course, higher prices come with their own pitfalls, but I don’t think that they’re as offensive as when you see something like that $3 charge for sanitation.”
American Express conducted a survey about credit card surcharges, and it found about 85% of respondents said they’d take their business elsewhere. 70% said the surcharge meant the business doesn’t value their patronage.
For restaurants in particular, Rossman said one option is to raise menu prices, since we tend not to notice such changes, compared to line items on the bill. In any event, these additional charges will be yet another challenge for small business owners.