What Does the Visa/Mastercard Rate Hike Mean for Merchants?
BFC Enterprises • September 30, 2023

With Visa and Mastercard set to raise rates in October 2023 and April 2024, many small business owners are concerned about the impact on their bottom line. While the exact increases have yet to be announced, analysts predict hikes of up to 0.2%. But, for merchants already operating on slim margins, even slight rate increases can significantly eat into profits.


Thankfully, there are steps merchants can take to offset these extra costs.

Surcharging is Still Alive and Well

One option merchants have is to pass on the extra fees directly to customers through surcharges on card transactions. This type of surcharging is legal in most states and territories, though not available in Connecticut, Massachusetts or Puerto Rico. However, surcharging rules have tightened recently. Previously, merchants could add surcharges of up to 4% to credit card sales. Now the cap sits at 3%.

 

But, while lower than before, 3% surcharges still allow merchants to recoup some of the swipe fees charged by Visa, Mastercard, and card-issuing banks. And, when faced with an extra fee at checkout, some customers may even opt to pay with cash instead. This allows the merchant to avoid the high credit card processing rates on those transactions altogether.

 

What Are the Benefits of Cash Payments?

Speaking of cash, accepting and encouraging cash as the primary form of payment is another way for small businesses to sidestep card processing fees. With cash, merchants keep 100% of the payment. There are no hidden swipe fees from third parties. Even better, cash doesn’t rely on electronic systems, so connectivity issues don’t jeopardize transactions.

 

From a customer experience standpoint, paying in cash can feel simpler when compared to chip cards. Customers don’t need to remember PINs or sign receipts. Plus, cash provides a certain psychological benefit, making purchases feel more tangible and controlled.

 

For merchants, cash transactions are anonymous, uncomplicated, and fee-free. However, carrying large cash volumes does pose some risks. Smart cash management and regular bank deposits are a must.

 

Add an ATM to Drive Cash Usage

To incentivize cash payments among customers, consider placing an ATM on-site. When customers can grab cash right where they’re shopping or dining, they’ll be more inclined to use it. Plus, you’ll earn money on every ATM withdrawal. But if your goal is to encourage cash payments at the register, consider setting a low surcharge for even better results.

 

Be sure to advertise the ATM and cash payment discounts prominently in the store, with outdoor signage and online for added success. And train staff to politely ask how the customer will pay and mention the cash discount.

 

Brace for Rate Hikes Creatively

Visa and Mastercard rate hikes will soon impact millions of merchants. While surcharging and cash discounts won’t eliminate the fees completely, they do provide creative means of offsetting the extra costs. Savvy small business owners will deploy these and other tactics to keep commerce affordable even as swipe fees hit new heights.

 

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By BFC Enterprises October 27, 2025
That's exactly why partnering with BFC Enterprises to select and manage your amusement games is a smart move. You get expertly matched equipment that maximizes fun, keeps customers engaged, and hits your revenue goals, without any of the guesswork or hassle. Game Selection Backed by Real Experience BFC Enterprises has spent decades placing games in all kinds of business environments. We've seen what works in shopping centers versus family restaurants. We know which games draw teenagers at youth sports facilities and which ones keep adults entertained at bars while they wait for their food. When we evaluate your location, we're looking at your customer base, your foot traffic patterns, and your available space. We're thinking about who's walking through your doors, how long they typically stay, and what kind of entertainment matches their vibe. Then we match game styles to those factors for optimal performance. You shouldn't have to figure this out through expensive trial and error. We already know what works. Maximize Play and Profit Here's a truth every business owner should know: not all amusement games perform equally in every location. Some games get tons of attention and consistent play. Others just take up space. We use data and hands-on experience to choose games that will actually get played. We place the ones that grab attention, generate consistent activity, and deliver the highest revenue return. This means more passive income for you without spending months testing different machines to see what sticks. Think of it this way: we're not just dropping random equipment in your location and hoping for the best. We're strategically placing proven performers that match your specific environment. That's the difference between a few extra bucks a month and a meaningful revenue stream. Regular Rotation Without the Hassle Even the best games can get stale after a while. That's why we don't just set it and forget it. BFC Enterprises actively monitors game performance at your location. When we notice engagement dropping or when there's an opportunity to refresh things, we rotate games to keep your customers interested and having fun. We also select seasonal prizes that keep people playing longer and coming back to see what's new. The best part? You don’t have to track any of this yourself. We handle the strategy, the swaps, and the prize selection. Your customers stay entertained, and you keep earning, all without lifting a finger. Full-Service Support You Can Count On When you partner with BFC Enterprises , you're not just getting equipment delivered and left behind. You're getting complete, ongoing support. We handle compatibility issues, maintenance, prize stocking, and repairs. If something breaks, you're not scrambling to fix it or figure out who to call. Our team takes care of everything while you focus on what you do best – serving your customers and running your business. This is truly passive income. No headaches, no technical problems to solve, no wondering if you picked the right equipment. Just steady earnings from games that work. The Bottom Line Adding amusement games to your location is a smart way to increase customer engagement, extend dwell time, and create an additional revenue stream. But only if you choose the right games and manage them properly. When you partner with BFC Enterprises, you get the best-performing, highest-return amusement setup – customized specifically to your business and your customers – without any of the work. We bring the expertise, the equipment, and the ongoing support. You bring the space and the customers. Together, we create more fun, more engagement, and more profit. Ready to get started? Contact BFC Enterprises today and let's build the perfect amusement game setup for your location. 📞 (314) 961-9000 🌐 bfcenterprises.com/contact
Boost staff morale, reduce turnover, and create a new revenue stream with an ATM on-site
By BFC Enterprises October 9, 2025
Inflation and staffing challenges continue to squeeze restaurants and bars. Learn how an on-site ATM can boost staff morale, reduce turnover, and create a new revenue stream — all while helping customers tip in cash.