Which of the following defines the term 'surcharges' in payment processing?

Surcharges in payment processing refer specifically to fees that merchants add to credit card transactions, typically to offset the costs associated with accepting credit card payments. This fee can be applied to the customer at the point of sale, often implemented as a percentage of the transaction amount or as a fixed dollar amount.

The rationale behind surcharges stems from the fact that credit card companies charge merchants a processing fee for each transaction. By adding a surcharge, merchants aim to recover some of these costs, which can be significant, especially for businesses with high transaction volumes.

Understanding that surcharges are generally associated with credit card payments helps differentiate them from other types of fees, like those related to checks, ATMs, or returns, which do not fall under the same definition. Each of those options represents a specific type of fee or service charge that operates independently from surcharges in the context of credit card transactions.