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Tired of Paying High Merchant Fees to Accept Plastic? Speak Out!

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A reporter from a major newspaper is looking for any small/medium size business owners that would be willing to talk about the fees merchants get hit with to accept credit cards, especially the higher fees imposed by Visa/MasterCard to accept premium credit cards, like Visa Signature Cards and World MasterCards.

 

Please contact me asap if you'd be willing to chat with her. She's very nice. Please include your contact info. and best time to call.

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A reporter from a major newspaper is looking for any small/medium size business owners that would be willing to talk about the fees merchants get hit with to accept credit cards, especially the higher fees imposed by Visa/MasterCard to accept premium credit cards, like Visa Signature Cards and World MasterCards.

 

Please contact me asap if you'd be willing to chat with her. She's very nice. Please include your contact info. and best time to call.

 

Maybe the next callout will be:

 

"Merchants, are you tired of deducting merchant fees from your income taxes? Are you tired of watching all of your plastic-paying customers buy their stuff across the street? Call now."

 

 

It's a cost of doing business, plain and simple. Let's just hope the truth doesn't get in the way of a good story.

 

Is this reporter interested in speaking with consumers also?

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How about the 6 bucks I was charged to pay my DC water bill online last night?

Can I complain about that?

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How about the 6 bucks I was charged to pay my DC water bill online last night?

Can I complain about that?

I don't think it is fair for businesses of any size to pass along the costs of accepting cards to their customers. i think it should be totally outlawed, it's not fair that small businesses can't do it but larger enterprises can. It's discrimination.

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How about the 6 bucks I was charged to pay my DC water bill online last night?

Can I complain about that?

I don't think it is fair for businesses of any size to pass along the costs of accepting cards to their customers. i think it should be totally outlawed, it's not fair that small businesses can't do it but larger enterprises can. It's discrimination.

 

I agree with you about large versus small, but what makes you think that the costs of accepting plastic isn't already factored into the price of the product? In my opinion, it already is.

 

It's one of myriad costs of doing business. I can't blame a business owner for trying to maximize profits, but this would be a pretty stupid way to do it. Many employers don't want to pay minimum wage either, but, again, it's a cost of doing business.

 

The business owners know the fees when they initially decide to accept plastic.

 

A friend of mine sells a very strange product (not obscene) via the internet. He had to purchase a card reader, and pays for paper, account fees, AND transaction fees. I asked him whether it was worth the fees, and he said "Yes. I factored the fees into the price of the product." Additionally, he said that it gives the buyers peace-of-mind, stating that he doubted if he'd ever get a sale offering PayPal only.

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Whoa this thread has all sorts of exciting things for me to say..

 

To the person who posted the thread what about a person who sells Merchant Services.. does she want to speak to someone like me?

 

DCPenal - the credit card companies do not charge that fee the merchant does. Additionally if the transaction is not face to face they are allowed to charge this fee because they are taking a risk. If a merchant charges a fee for accepting your CC in a face to face transaction they can be reported to Visa and MC for non-compliance b/c it is illegal. Additionall if a Merchant accepts Visa and MC they can not deny your charge of any size even if its a penny!

 

If you accept paypal you will pay some of the highest fees in the industy and paypal is sure making money from this!

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How about the 6 bucks I was charged to pay my DC water bill online last night?

Can I complain about that?

I don't think it is fair for businesses of any size to pass along the costs of accepting cards to their customers. i think it should be totally outlawed, it's not fair that small businesses can't do it but larger enterprises can. It's discrimination.

 

what's not fair is the rate varies between businesses - if all businesses had the same rate as walmart, there would be less to complain about.

 

I was not aware the sig/world cards have a higher discount rate - i often get charged a second fee for some transactions but they told me it's because they are non-us issued cards or otherwise don't conform to the requirements for my standard fee. I now wonder if they are sig /world cards - it's all done on the internet so i never see the cards. (The last extra fee was $88 on a $3000 credit sale - some months i lose $200 to the extra fees, on top of the standard fees.)

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How about the 6 bucks I was charged to pay my DC water bill online last night?

Can I complain about that?

I don't think it is fair for businesses of any size to pass along the costs of accepting cards to their customers. i think it should be totally outlawed, it's not fair that small businesses can't do it but larger enterprises can. It's discrimination.

 

what's not fair is the rate varies between businesses - if all businesses had the same rate as walmart, there would be less to complain about.

 

 

But each business agrees to the fee structure. How is it not fair? Who said anything was supposed to be fair?

 

Visa and MC are businesses, and they are going to cater to those who support their business model most favorably. Walmart's individual transaction costs are most likely minimal, but Visa / MC makes up for that in volume. Likewise, Walmart's prices are low(er) because they can buy in massive quantities, and they operate their own distribution centers. All of this drives down their costs.

 

Just like manufacturers, Visa and MC offer the best deals to those who can/will purchase the most. One can buy 1 million bottles of Coca Cola cheaper than they can buy 1 6-pack.

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CB supports Curtis and his media contacts, if anyone doesn't know him by now.

 

Help them out if you can.

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A LITTLE OFF TOPIC...BUT TRUE FACT

 

CREDIT CARD FEES are tax deductable just like...

 

PHONE

GAS

WATER

TRASH

ELECTRIC

SEWER

ETC

 

COST OF DOING BUSINESS

 

I (personally) go to a business BECAUSE they take credit cards!!!

 

NO CREDIT CARDS = NO SALE

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This is a sore subject with me. In the past 10 years I've watched our merchant discount rates go from 1.89% to over 4.5% for some cards now. This on top of all the per transaction fees such as authorization fees, avs fees, batch settlement fees, "customer service" fees, statement fees and these are all when the transaction goes right. If some joker questions a charge or requests a draft retrieval the fees absolutley skyrocket. Over $50 each in some cases. We've all built these fees into our pricing, everyone has. And whether you as consumers like it or not, you're paying them. We now give discounts to try to encourage other payment methods, 5% for cash, 3% for checks or paypal (paypal charges a flat 2.39% and no per-transaction fees). Using plastic has a price, it used to be reasonable and no longer is. It's just a matter of time before the wal-marts and targets of the world jump on board with this policy too as they fight harder and harder amongst each other for true minimum pricing.

Edited by Garret

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This is a sore subject with me. In the past 10 years I've watched our merchant discount rates go from 1.89% to over 4.5% for some cards now. This on top of all the per transaction fees such as authorization fees, avs fees, batch settlement fees, "customer service" fees, statement fees and these are all when the transaction goes right. If some joker questions a charge or requests a draft retrieval the fees absolutley skyrocket. Over $50 each in some cases. We've all built these fees into our pricing, everyone has. And whether you as consumers like it or not, you're paying them. We now give discounts to try to encourage other payment methods, 5% for cash, 3% for checks or paypal (paypal charges a flat 2.39% and no per-transaction fees). Using plastic has a price, it used to be reasonable and no longer is. It's just a matter of time before the wal-marts and targets of the world jump on board with this policy too as they fight harder and harder amongst each other for true minimum pricing.

 

There are a lot of junk pricing in the merchant services industry. It's just as varied as credit card APR's. If you're a member of a wholesale club (Sam's Club, Costco, BJ's whoever) - go online or call them up and get the phone # for their preferred merchant services provider. Even if you're not a member, it'll be worth whatever the membership fee is.

 

I can almost guarantee you that you'll save money on fees. You shouldn't be paying 4.5% on merchant services (although AmEx gets pretty close)

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There are a lot of junk pricing in the merchant services industry. It's just as varied as credit card APR's. If you're a member of a wholesale club (Sam's Club, Costco, BJ's whoever) - go online or call them up and get the phone # for their preferred merchant services provider. Even if you're not a member, it'll be worth whatever the membership fee is.

 

I can almost guarantee you that you'll save money on fees. You shouldn't be paying 4.5% on merchant services (although AmEx gets pretty close)

 

Most cards aren't that bad. But more and more are getting to be every day. This started a few months ago when the banks included the rewards cards into the non-qualified status for interchange rates. Because so much of what we do is e-commerce we have to have an authorize.net gateway. Most of the reputable merchant banks don't deal with them and are strictly FDMS/Nashville and the sort.

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How about the 6 bucks I was charged to pay my DC water bill online last night?

Can I complain about that?

Protest.

 

Use no more water. :angry:

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This is a sore subject with me. In the past 10 years I've watched our merchant discount rates go from 1.89% to over 4.5% for some cards now. This on top of all the per transaction fees such as authorization fees, avs fees, batch settlement fees, "customer service" fees, statement fees and these are all when the transaction goes right. If some joker questions a charge or requests a draft retrieval the fees absolutley skyrocket. Over $50 each in some cases. We've all built these fees into our pricing, everyone has. And whether you as consumers like it or not, you're paying them. We now give discounts to try to encourage other payment methods, 5% for cash, 3% for checks or paypal (paypal charges a flat 2.39% and no per-transaction fees). Using plastic has a price, it used to be reasonable and no longer is. It's just a matter of time before the wal-marts and targets of the world jump on board with this policy too as they fight harder and harder amongst each other for true minimum pricing.

CREDIT CARD or NO SALE

 

YOU DECIDE

Edited by GEORGE

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This is a sore subject with me. In the past 10 years I've watched our merchant discount rates go from 1.89% to over 4.5% for some cards now. This on top of all the per transaction fees such as authorization fees, avs fees, batch settlement fees, "customer service" fees, statement fees and these are all when the transaction goes right. If some joker questions a charge or requests a draft retrieval the fees absolutley skyrocket. Over $50 each in some cases. We've all built these fees into our pricing, everyone has. And whether you as consumers like it or not, you're paying them. We now give discounts to try to encourage other payment methods, 5% for cash, 3% for checks or paypal (paypal charges a flat 2.39% and no per-transaction fees). Using plastic has a price, it used to be reasonable and no longer is. It's just a matter of time before the wal-marts and targets of the world jump on board with this policy too as they fight harder and harder amongst each other for true minimum pricing.

CREDIT CARD or NO SALE

 

YOU DECIDE

 

It used to be that way, now we let the customer decide. Some use the plastic, some take the discount. Choices are a good thing as I see it.

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This is a sore subject with me. In the past 10 years I've watched our merchant discount rates go from 1.89% to over 4.5% for some cards now. This on top of all the per transaction fees such as authorization fees, avs fees, batch settlement fees, "customer service" fees, statement fees and these are all when the transaction goes right. If some joker questions a charge or requests a draft retrieval the fees absolutley skyrocket. Over $50 each in some cases. We've all built these fees into our pricing, everyone has. And whether you as consumers like it or not, you're paying them. We now give discounts to try to encourage other payment methods, 5% for cash, 3% for checks or paypal (paypal charges a flat 2.39% and no per-transaction fees). Using plastic has a price, it used to be reasonable and no longer is. It's just a matter of time before the wal-marts and targets of the world jump on board with this policy too as they fight harder and harder amongst each other for true minimum pricing.

CREDIT CARD or NO SALE

 

YOU DECIDE

 

It used to be that way, now we let the customer decide. Some use the plastic, some take the discount. Choices are a good thing as I see it.

 

I don't shop where they have a cash discount. I feel that the business is ripping you off whether it is a cash discount or credit surcharge (the latter is not allowed by the credit card companies.)

 

Plain and simple... if you don't want to follow the rules and you can't afford the credit card fees, don't take credit cards.

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I don't shop where they have a cash discount. I feel that the business is ripping you off whether it is a cash discount or credit surcharge (the latter is not allowed by the credit card companies.)

 

Plain and simple... if you don't want to follow the rules and you can't afford the credit card fees, don't take credit cards.

 

Whether you like it or not you are already paying these fees whether you call it a credit surcharge or it's built into the cost of the goods. You'd rather they rip everyone off???? Pretty selfish IMHO.

Edited by Garret

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