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Feature Introduction: Surcharging

  • Updated

Surcharging is becoming a more common business practice, including within the beauty industry. Surcharging means you are passing on the card processing fees from the business to your client. It is usually only a small additional amount, but can add up to significant savings for the business over time. This is why Timely has built a surcharge feature!

In this article you will learn if you are able to use the surcharging feature, obligations you have when surcharging. For more information on surcharging, see our help guide Frequently asked questions (FAQs): Surcharging. 

 

 

Important note: It is crucial to be aware of your local legislations, for example: On 28 July 2025, the New Zealand Government announced plans to ban payment surcharges. In anticipation of the ban taking effect and other upcoming changes in the payments system, there are resources available to support businesses. You can take a look at this article from the NZ Commerce Commission for more information.

 

 

Can I use surcharging? 

Timely's surcharging feature has a limited version available for both web and mobile customers. This version has everything you need to start surcharging, including:

  • See the surcharge amount reflected in the checkout, on the terminal, in invoices, and cash-up 
  • The ability to refund a transaction that had a surcharge applied
  • An extra column and total for surcharges in the TimelyPay transaction history report
  • A toggle that will apply to all transactions with your TimelyPay terminal devices and business locations

 

 

Understanding surcharging

  • What is surcharging?
    Surcharging is the practice of passing on card processing fees to customers. An extra fee is automatically added to the total transaction amount when customers pay in-salon. This small fee is intended to cover the cost of card processing fees for the business.
     
  • Is surcharging legal? Are there restrictions on surcharging?
    There are regulations and guidelines by respective governments and payment providers to ensure fairness and transparency. It’s important that business owners familiarise themselves with these regulations and guidelines before they start surcharging. Please see the important note at the top of this article for upcoming changes to NZ commerce laws.
     
  • How much can a business surcharge?
    If you are surcharging through Timely, and this practice is allowed in your region, the amount you pass on to your client will be the exact amount of the card processing fees for the transaction.
     
  • Why do businesses surcharge card transactions?
    While a card processing fee is a small additional cost for your client, they can add up to be a significant expense for businesses over time, particularly for small transactions. Including a surcharge allows businesses to partially or completely cover this fee.
     
  • How do taxes work with surcharges?
    TimelyPay fees and Surcharges can have different tax treatments, we suggest your speak with a registered accountant as they will be able to give you the most accurate and specialised information based on your unique business needs.

 

Timely note: For more information on setting up surcharges for your business, see our help guides: How to use terminal card surcharging on the Timely web app or How to use terminal card surcharging on the Timely iOS app to get started!

 

 

What are your obligations when surcharging

As a business owner, you have obligations towards your customers when surcharging, this allows customers to know about the surcharge and choose to accept it or pay another way. We strongly recommend that you familiarise yourself with your government regulations and guidelines on surcharging prior to introducing a surcharge in your salon. 
 

Obligatory best practices

A Inform your clients about the surcharge: be transparent about the surcharge and the client's payment options ahead of payment. You may also want to include signage at your point of sale or in your salon to inform customers of the surcharge.

 

B Provide an alternative payment method: you must provide your clients with at least one alternative payment method that does not incur a surcharge, such as cash. This should also be communicated prior to making payment.

 

C Only surcharge to cover the card processing fees: a surcharge should not exceed the additional cost of accepting the payment that the surcharge applies to. Simply put, this means the surcharge should only cover the card processing fee for the payment. The customer's receipt must display the surcharge amount. We take care of this for you by including this on the invoice or thermal receipt that can be given or emailed to your customer.

 

D Always follow the most up to date government regulations and guidelines: to ensure you are meeting your obligations of fairness and transparency for your clients. This empowers them to make informed decisions about their preferred payment method.

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