Credit card fees (NAC!)

[Kneale Brownson]

Mike, you need to hunt for a different card processing agent.  I pay a
monthly fee to the processor for something like $12-15 and am charged
2.5-3.5% of transaction amounts, depending upon the amount and the card
used.  The only way my credit card costs amount to a quarter of the total
charged is if it's less than $50-60 for the month.

At 05:02 PM 4/14/2005 -0400, Mike Arman wrote:
>
>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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