Small businesses dealing with credit card fee increase

FRESNO, Calif. (KFSN) -- Using your credit card at small businesses could cost you more.

People at C-Care enjoy coffee from the Kuppa Joy kiosk. Many pay by credit card.

"I would say over half the sales now are a credit card. We're really starting to edge toward this cashless society and it's easy and convenient. Square has made it even more convenient where you just tap the phone and the transaction goes through. So Having this increase though will be huge when you're doing that much volume through credit cards," said Kuppa Joy owner Zack Follett.

Follett is one of the many owners frustrated by the increase of fees.

Starting Nov. 1, square changed its fee to 2.6% with a 10 cents flat fee per transaction.

"If you're just a one shop, two shop, it's really going to hurt you. Those effects. You really have no wiggle room and you have to pass that onto the customer for us that's the last thing we want to do," Follett said.

Follett says they're looking to change their business costs to keep fees down like buying in bulk or directly.

"That's allowing us to continue absorb all these new fees, absorb minimum wage and not have to pass that onto the customer just yet. So we are holding out as long as we can. So you can taste that joy at the same price you used to," Follett said.

He knows other owners won't be able to do so as the cost of doing business in California keeps going on.

Square says they are making the change to align dates with industry wide costs. And wants to help sellers grow their business.

Now with the Increase in fees, Small businesses like Kuppa joy are looking to incentivizing people who buy gift cards or pay in cash.