I charge my customers extra for using credit/debit cards. Is this ok?
Manually adding charges to customers using credit cards is forbidden. Visa, MasterCard, Discover & Amex are currently cracking down on this and if caught the merchant could face multiple penalties:
1. TMF (Terminated Merchant File) & added to MATCH list which can difficult for them to ever accepting credit cards.
We however, advise a minor price adjustment on all products and services no matter the tender used for purchase be it cash, credit card, debit card or check. Then in return our Terminals are pre-programmed and authorized to discount a flat rate to each cash transaction to reward customer thus offsetting the cost of processing sales.
I’m scared I will lose customers with any small change that will help me profit. Should I be afraid?
Customers are already paying fees in many other businesses so this does not come as a surprise to them. Our merchants are no longer setting minimum credit card purchase requirements and are actually seeing an increase in sales. The feedback is consistent. For the first 30-60 days 5%-10% of customers ask a question about the small change less than 1% of customers have turned down the sale due to the slight adjustment. Remember, when the customer pays cash we offer incentives . Our business owners have reported an increase in cash sales and profits across the board.
Other Businesses that charge Fees:
1. Paying a Parking Ticket online
2. Utilities such Electric, Gas & Water charge anywhere from $5 top $10 for using a credit card to pay your bill.
3. Cell phone & Cable bills are comprised of fees that no one understands
4. ATM’s charge fees and then your Bank charges you a fee for using the another banks ATM (you pay twice)
5. Buying a movie ticket online cost an additional $5 for the convenience.
6. Using you card to buy gas costs an additional 2% per gallon
And many more...
As a 3rd Party Processor, why do you charge a convenient flat rate?
On many transactions the cost we pay to process the interchange transaction can be more than 4%.
The flat rate covers:
1. All Transaction Costs (except EBT)
2. Merchant online portal access
3. Fraud Protection
4. Processing Platform
5. Next Day Funding (see qualified businesses)
6. Chargeback Assistance
7. 24/7 Customer Support
Remember, there is no cost to you, so there is no bill or profits taken at the end of the month. As a bonus a portion is donated to several different charitable companies.