In this week’s episode of the Self Storage Insight Podcast, Ben Shirey sits down with James Shepherd to tackle one of the hottest and most misunderstood topics in self storage today: passing credit card processing fees to tenants. With more operators exploring ways to offset rising payment costs, confusion around surcharging, dual pricing, compliance, and customer experience has quickly become a major industry conversation.
James brings nearly two decades of experience in the payments industry and shares why his perspective on these programs changed dramatically over time. He admits that when he first heard about passing payment costs to customers years ago, he thought it was a terrible idea. After speaking with business owners and studying consumer behavior more closely, however, he realized the issue wasn’t simply about passing costs—it was about how those costs were presented. Transparency and customer experience, he explains, ultimately determine whether these programs succeed or create friction.
A major focus of the conversation is understanding the difference between surcharging and dual pricing—two terms often used interchangeably despite being very different. James explains that surcharging is heavily regulated and adds a fee at the end of the checkout process, often creating a negative customer experience. Dual pricing, on the other hand, gives customers a clear choice upfront, similar to the cash-versus-card pricing model consumers have seen at gas stations for years. According to James, customers respond much more positively when pricing is transparent from the beginning rather than feeling surprised at checkout.
The discussion also addresses some of the biggest misconceptions operators have: “It’s illegal in my state,” “customers will push back,” or “accepting cards should just be part of doing business.” James argues that every facility already passes processing costs along through pricing in one way or another—the real question is whether that cost is distributed fairly and communicated clearly. In his view, giving tenants payment choices creates a more balanced and transparent experience.
Ultimately, the episode reinforces that payment programs are about much more than saving money. Operators need to think carefully about compliance, consumer expectations, and long-term customer relationships. The facilities that implement these systems thoughtfully—and with the right guidance—can improve profitability without creating friction for tenants.
For self storage operators considering payment optimization strategies, this episode offers practical insights into reducing costs while maintaining a strong customer experience.