First of all - credit cards allow for a lot more "impulse" buying than cash - and buying extra things that a person never really intended to purchase when they went to your store to buy a bolt. So don't put up a wall to keep that from happening. NEVER punish a person for wanting to spend more money than they have at your store!!! In fact, you PROBABLY sell more "extras" than you realize due to credit cards, and those sales probably already cover your 4% fee quite nicely.
Next - let's say 50% of your customers pay with credit cards (for simplicity). If you want to spread the cost of cc charges across to all, you don't have to raise your prices by 4%, you'd only have to raise them by 2% (50% of 4%). If only 25% use credit cards, you'd only have to raise them by 1% (25% of 4%). So that doesn't avoid the problem altogether, but it certainly may reduce it to a point where it's more attractive to you. Of course, if over 90% of your customers use cc's then you do have to raise by 4% - but ... by default you'd have to do that anyways.
If you feel you must raise the prices for cc usage, do as somebody else here posted and call it a DISCOUNT for paying with cash. It's the same thing - but mind games work. Again I have to stress it - you never want to persuade somebody NOT to spend money they don't have in your store - a credit card is a wallet full of imaginary cash. (and don't forget to surround your register with "last minute" impulse buy items. :)
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Today's Featured Article - Women and Tractors - More Views From the Farmer's Wife - by Teri Burkholder. The top ten reasons why the judges wouldn't let you participate in the stock antique tractor pull: Hey, this is stock! It came with that V8 in it! That "R" on my tires stands for "really old" not radial! Blue gas? We thought it was a pretty color! What wire hooked to my throttle?
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