Re: [ST] Cash purchasers

[Matt Knowles <matt@xxxxxxxxxxxxxxxxxxx>]

On Jul 10, 2007, at 10:19 AM, JES_VFR wrote:

> The fees charged to a business for using a credit card machine cut
> into the profit on a deal and are based a transaction ratio (total
> dollars to number of transactions) so the merchant would rather have
> 50 purchases a week for $9,000 than 2 totaling $18,000.
>

My credit card merchant bank charges me $10 every month regardless of 
whether I accept any credit cards that month or not.

For transactions in person where I run the card  they charge about 
1.6%. For phone or internet orders it goes up to about 3.5%. Each 
transaction also gets charged 25 cents for a transaction fee.

So using your example, I'd rather have 2 sales totaling $18,000, 
because not only did I make $9k more in sales, I would have save $12 in 
transaction fees.

My original point though is that the agreement with the credit card 
companies stated that if I agreed to accept their credit card I had to 
accept it for all purchases. I couldn't set a minimum or maximum 
purchase amount. I also couldn't tack on a extra fee if the customer 
wanted to pay with a credit card.

I have to question a business owner who would choose to possibly lose a 
sale because they're going to lose about 1.6% of the transaction. How 
much are they going to spend on marketing to find the replacement 
customer?

Matt Knowles - Ferndale, CA - 
http://www.knowlesville.com/matt/motorcycles
  '99 Sprint ST - for going fast and far (2CZUSA)
  '01 KLR650 (A15) - for exploring the North Coast backroads
  '97 KLX300 & '01 Lakota - for playing in the dirt
  '79 KZ400 - just because it was the first vehicle I ever owned

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