Prices need to increase as part of doing business. You don't want to think of it as a 'punitive' approach but just an all around increase to help offset rising costs. You are looking to reclaim that .10 but what happens when your phone bill goes up $50? Are you going to add a surcharge to only the people who call you? A surcharge for customers that come in the winter and benefit from your heating? You can't possibly base increases of one thing - it would never stop and the best you'll ever do is break even.
So, your cash customers absorb part of the cost of doing business increases alongside your charge customers. That will better equip you for the next price increase from a supplier or utility. Better equip you for when a different increase affects a different segment (paper costs - raise prices for people who get receipts?).
I mentioned elsewhere that I'm lucky, the price increase is a wash for me because I sell some large ticket items. But still, it is costing me more on those smaller ticket sales. Many of my small items are less than $10. One of my most popular items is $6.95 - it used to be $6.50 but I decided it was time for a raise. So, the Square increase bit into that .45 cent raise but I was able to absorb it easier. And everyone, cash or credit pays the new price. Here's the kicker - this item is bought on the internet for cheaper than I can sell it for and yet, I still sell plenty and not ONE person even mentioned the price increase. I'd say, maybe change how you view this - sure, raise your price to offset your costs but look at it as a raise to you, not a recouping of one expense.
