Credit card fees (NAC!)
audi at humanspeakers.com
Fri Apr 15 21:01:36 EDT 2005
> 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
Mike, I have to ask just what you're selling, or, why the fees came up
to such a high percentage?
I've been doing mail order for 17 years, and taking MC/Visa through my
bank for 15 of them, and I'm still paying a hair under 4% (plus $10 or
12 a month). Considering that 90-95% of my customers use the plastic
rather than send checks, I suspect they find it *very* much to be what
they want to do. It also makes international transactions transparent -
I charge in US $, they get billed in their local currency, and don;t
seem to be getting ripped off on the conversion AFAIK.
Customers of this type (mail order/web site etc.) also get some major
peace of mind using a card, since they have disputation rights that are
very strong if something goes wrong.
> 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
> I agree with Kneale. I pay no monthly fee and my percentage is about 3%.
As suggested, I would simply look into another vendor to do your
processing for you. My system is totally stone age - all I can accept
are MC/Visa, I pay a moderately high rate, and I actually dial the
transactions in on the phone to get authorization and charge the cards.
But it works, and I don't have to rent a terminal - there's not much
need anyway since I so rarely see cards in person.
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