Consumers Frustrated By Rising Surcharges

Feeling the pinch lately? It’s not just inflation and rising oil prices. Americans are facing a growing wave of added fees from businesses, and the frustration is reaching a boiling point. New research shows that consumers are fed up with these hidden charges as companies pass on increasing costs.

Record Low Consumer Sentiment on Surcharges

A recent consumer survey released on April 10th by the University of Michigan revealed the lowest-ever sentiment regarding surcharges. These findings are actually worse than what was seen during the 2008 recession and even the height of the pandemic, signaling a significant and growing concern over these added prices.

Corey Andrews, a 32-year-old market strategist from Denver, describes himself as a savvy consumer who tries to avoid extra fees. However, he notes, ‘When everything goes up, you run out of levers.’ While many consumers grudgingly accept these fees due to rising costs like fuel, Andrews argues that the current surge isn’t as justified or temporary as businesses claim.

Changing Habits to Combat Hidden Costs

In response to these rising costs, consumers like Andrews are adjusting their behavior. This includes avoiding restaurants with added service charges, skipping fee-heavy delivery apps, bundling purchases to dodge shipping fees, and strategically using credit cards with travel perks to offset expenses like baggage fees.

The Impact of ‘Drip Pricing’

How much a surcharge bothers consumers often depends on when it appears. Fees that are shown upfront tend to be better received than those mysteriously added at the very end of a transaction. This tactic, known as ‘drip pricing,’ has drawn the attention of regulators. The Federal Trade Commission even banned it for short-term lodging and live-event ticketing in 2025, citing concerns that low initial prices mislead consumers, even if the full costs are eventually disclosed.

Ben Weinhart, a 27-year-old accountant from Cincinnati, feels that ‘COVID kind of opened the floodgates’ for these surcharges, many of which never returned to pre-pandemic levels. He now feels like he ‘needs to be [his] own detective’ to track all the added costs.

The Rise of Credit Card Surcharges

The trend is particularly noticeable with credit card fees. A 2025 study by J.D. Power found that 34% of small businesses now add credit card surcharges. Similarly, a report from the National Restaurant Association indicates that one in five restaurants include these extra fees, a significant jump from 16% in 2022.

Experts like Vicki Morwitz from Columbia University explain this phenomenon partly through a ‘lock-in effect.’ Shoppers are less likely to abandon a purchase once fees appear at checkout, even if they feel tricked. ‘The next time I come back, I’m still drawn in by that initial low price,’ Morwitz explains, ‘Even if I may have felt tricked the first time.’

Why Businesses Prefer Surcharges

Companies often opt for surcharges over straightforward price hikes because they can shift blame to external factors. For instance, labeling a fee a ‘fuel surcharge’ makes it appear directly tied to rising costs rather than increased profit margins, according to Rebecca Hamilton of Georgetown University. Research suggests consumers are more accepting of increases framed this way, viewing them as more legitimate than direct price increases, even if the final cost is the same.

Michael Weber, a finance professor at Purdue University, notes, ‘We all see it every day passing by the gas station.’ Weinhart highlights the appeal of all-inclusive pricing he experienced in Europe, where ‘the price was just the price.’ He expressed a willingness to pay more upfront to avoid the exhaustion of constantly being vigilant about hidden, last-minute fees.