Credit card fees (NAC!)

[Mike Arman]

This is a non-Audi question.

The reason I am asking it here is that I know I'll get some honest answers, 
and the Audi list happens to more or less fit the customer profile of the 
people who will be affected by my decision. (Vehicle enthusiasts, mostly 
male, and willing to tinker.)

This last month, the merchant account fees on my credit card acceptance 
came to a full 25% of total sales! Mastercard and Visa are making more on 
what I'm selling than I am. In addition, they sent me a 15 page document 
which itemized in great detail all the various upcharges and penalties and 
reasons why I'm going to have to pay them even more, and reminding me that 
if I offer a discount for cash, they will cancel my account entirely. This 
document is totally incomprehensible to me, and my specialty is 
international finance . . .

I'm more than a little tired of being on the *very* short end of a *very* 
sh*tty stick from them, and I am considering dropping credit card 
acceptance entirely. It simply costs too much, both on my end, and the 
customer's end. (And I am also mindful of an $1,800 fraudulent card 
transaction a client of mine just had to eat - after he complied with 
EVERYTHING).

There are also security problems - Visa International cannot protect our 
data, but they now charge the merchants $40 to $60 a year as a "security 
overview assessment" - and they want me to buy a new card processing 
terminal for "only" $649 . . . plus $10 or $15 a month forever. I know 
there is software available so I wouldn't need to buy the terminal, but 
that still leaves the transaction fees, the monthly fees and the underlying 
security problems. Basically, if someone steals your card numbers and 
identity, I don't want to be the guy responsible, and Visa International 
will certainly attempt to shift the blame to the merchant at any opportunity.

So the question is this - If you were buying an item which costs about 
$25.00, and your payment options were Paypal, send a check, money order, or 
cash, but NOT Mastercard, Visa or Amex, would that discourage you from 
buying the item?

Are credit cards absolutely necessary for the transaction, would I lose the 
sale, or would you use Paypal or send a check if you wanted the product? 
(The product is only available from me - it is copyrighted - even though 
there are other vendors, it comes from me.)

(I also note that Paypal seems to be offering credit card processing at the 
same rates as for Paypal payments - and they assume the risk, there's also 
no monthly fee - if that's the case, and you or I can confirm that, what 
are your feelings about my continuing to take cards, but using Paypal as 
the gateway?)

MAC - The group buy top radiator hose for my V8 came yesterday - $90 
instead of $261 at the stealership - Thanks Ingo!!!

Best Regards,

Mike Arman

V8Q
Cody now has all the 5 cylinder cars and parts.


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