Credit card fees (NAC!)

Thu Apr 14 22:57:05 EDT 2005

I agree with Kneale. I pay no monthly fee and my percentage is about 3%. 

-Adam

Adam A. Luy - President
Routers, Inc.
6730 E. McDowell Rd.
Suite # 133
Scottsdale, AZ 85257
USA
V - 480.941.0472
F - 480.941.0478
-----Original Message-----
From: quattro-bounces at audifans.com [mailto:quattro-bounces at audifans.com] On Behalf Of Kneale Brownson
Sent: Thursday, April 14, 2005 5:05 PM
To: Mike Arman; quattro at audifans.com
Subject: Re: Credit card fees (NAC!)

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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>
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