Card processing fee

chattychappy

molerat wrote: »

Very altruistic not passing on the full amount of the fee to the customer. I am sure you would much rather be paid in cash because that is absolutely free to handle

Well, at least cash won't be chargedback because the consumer throws a wobbly.

phillw

Parnott wrote: »

The European Commission capped these fees over a year and both credit and debit cards are now (or should be charged as %)

No, the European Commission capped the interchange fees. Not the merchant fees.

tastyhog wrote: »

then it's you being ripped off by your card processing company, considering anyone can get rates at 0.699% for credit cards and 0.499% for debit cards, and £50 for a terminal? christ, talk about getting dry humped

If you take a couple of credit card payments a month and pass the costs onto your customers

"From £12.50 +VAT Per Month £25.00 Set Up Fee
From £9.99 +VAT Per Month
From £16.75 +VAT Per Month
From £18.50 +VAT Per Month"

Then those fees could still be pretty high (they are "From", with no indication of how that is calculated).

chattychappy

There can be other "costs" as well...

1) Chargeback... With cash/bank transfer, if the consumer has a claim which can't be resolved amicably, then they must prove their case in a court of law before you must pay out. If you've taken a credit card, you are at the mercy of a CC which tends to be consumer biased, particularly for cardholder-not-present transactions.

2) Money laundering checks.... a friend's business had a number of payments suspended without warning. He was asked to provide all sorts of documentation to prove that the transactions were genuine and within the terms of his agreement. After a large paperwork shufffle (and thanks to some cooperative customers) the matter was "mostly" resolved. But they withheld one payment, returning it to the consumer, because they said it was outside the agreement. (Somebody had bought some stuff from his shop and at the same time paid a deposit for a special order. The deposit element was rejected.)

In fact, everyone I know that takes CCs has had some kind of compliance issue. You only need one or two problems to push the real "cost" of acceptance up a few percent.