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Credit Card Transaction Real Cost

Credit card transaction fees have turned into a financial problem for my small business. I don't mean the fees I pay the processor, Mercury Payment Systems, but rather the fees they pass along to me for credit cards which earn the user financial points. I don't take AMX but I do take MC/Visa & Discover. What I'm finding is the "Real" cost of taking these cards is 3 -

3.25% of sales.

I'm of the mind to pass this hidden cost back to the customer who uses the credit card by charging an additional 3.25% on any credit card sale. Anybody done this before?

If all I had to do was to pay MPC their processing fees I would be fine with that. But the hidden fees on the special credit cards available today are an interesting way for a merchant to loose money and I disagree with that. Is there any way to see up front what a customers card is going to cost to process?

Anybody have any advise on coping with this issue?

Thanks, Richard

Reply to
Richard
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It does add up to significant costs. IMHO, it is better to figure it in when you markup the product then to charge EXTRA, less chance of pissing customers off. Raise your prices to cover it, wherever you can get away with it. For most of us, credit cards are probably far and away the most common method of payment. Unfortunately, MC/Visa know this and can get away with just about anything they want.

Marc

Reply to
Marc

You should try Citi bank/First data instead of Mercury. You are absoulutely right Mercury has so many hidden charge. I have been doing business with Citi 4 years and They dont have any hidden cost like MPC. I tried Mercury Sep 2006 for one month and I end up paying $200 more than Citi bank in month. then I swich back to Citi bank.

Reply to
HARJIT SHERGILL

I would agree that it is better to build this into your pricing than to charge a fee for credit cards. Offering a "Cash Discount" used to be a common practice. I believe it is a violation of most if not all Merchant account agreements now. If you get caught charging extra for card transactions, you may soon be a cash only business...

Glenn Adams Tiber Creek C> It does add up to significant costs. IMHO, it is better to figure it in when

Reply to
Glenn Adams [MVP - Retail Mgmt

Please know your rights like 5 million other merchants that accept credit cards and Leverage information to your advantage.

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Know effective rate vs. rate. "rate" is an effective shell game business

"Richard" wrote:

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retail

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