mastercard/visa minimum purchase fees

[3 men & a boat]

I just don't except cc. Cash, check, or barter.


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[ksenter]

for those complaining about CC fee's from a business ownership standpoint...consider:

We ae a society built around spending before earning. Albeit not correct or "the right thing to do", its how people are raised these days. "you must start building credit when you're 18 or you'll never own a house, buy a new car, etc." Many many people are raised this way now-a-days. Face it, its true, regardless of your opinion if its right or wrong.

That being said, as a business owner you must realize that getting a piece of the pie is better than no pie at all. What I mean by that is money in is better than money out. I would prefer to lose 3% of my margin and have revenue coming in rather than sitting on stagnant merchandise, rather than not making the sale at all. As mentioned earlier a way to overcome is to understand that in todays society 70% of people pay with electronic means. By adding an additional 3% into the retail sales cost, this profit margin can be maintainted. But now we must factor in pricing structure for a modern shopper comparing to "internet sales" and must protect our ability to make those sales. Again, an attack on profit margin. So what can we do? We (i'm not in firearms industry) can encourage quantity v. margin to maintain monthly p&l statements and price match anyone and everyone, or we maintain profit margin and learn to live with people walking out of the door with no product. Gotta make a decision, piece of the pie or no pie at all.

Fact still remains, being stubborn for the integrity of margin can equal no revenue stream.

 

[SAWMAN]

My wife is involved in the selling of some "higher end" merchandise. Her typical sale is $5000.- $7000. Some of her sales are >$12,000.+
Her company charges a 3% fee for paying by credit card. 3% of the above amounts is some serious money. She tells me that very rarely will the customer even complain about the fee. Her company WILL accept personal checks. ?? --- SAWMAN

 

[Little Jack]

Law from 2013 says merchants can add up to 4% to recoup those fees from CC, not debit. There are other intricacies to the law depending on state and local laws (FL is supposed to be surcharge free along with 9, or more, other states).

You're not necessarily getting charged more for the CC, it's that cash customers are getting charged less. Same same but the distinction is significant.

As far as dishonesty; it's a common practice in the retail sector. Most make it abundantly clear that's there's a discount associated with cash payments. It shouldn't be a surprise when it happens. If you don't like, don't buy from those merchants or send it back and challenge the charge on your CC. Now somebody that never mentioned a fee but charges you anyway needs to be upfront with it

From the retailer side, unless you're doing a huge volume, 3% is still a losing proposition. 3% is significant when your "profit" is single digits in the percentage.

I'm not a lawyer and haven't taken to time to see if any of the laws have changed in the Union recently. YMMV

 

[sjustice64]

Fl stat 501.0117


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