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CC Transaction Fee questions

It is similar but still different in my mind. A credit report is just a report from many sources on your credit worthiness. The blacklist ensures that the few companies that run the industry can squash any sort of competition.

But maybe it is required for the system to work…
 
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Let me pose a question to you as a business owners. Do you require your employees to follow your rules? Of course you do, so that, hopefully you never get sued for someone being burned by an oven, a patron slipping on a wet floor. You all do that to CYA. Rules are in place to protect all parties. I’m not Visa or MasterCard, they are the ones who set the rules by which all processing companies and merchants are required to abide. You agree to that when you sign a contract, its those pages filled with tiny print that no one takes the time to read.

I agree that merchants are being squeezed from all directions and are simply looking for some relief. There are many processing companies out there that are honest enough to tell you exactly how much money they are going to make from your account each month. You would never go below your cost to sell your products and processors can’t go below their cost, ( which is what Visa and MasterCard charge us).

If it were up to me Visa/MC would come up with a more simplified pricing structure.
 
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I don’t think that analogy follows. Employees can go to another company to work. If you get blacklisted from one credit card company it seems that you are prevented from going with another.

What drives the “minimum purchase” is the per use fee of 20 to 30 cents. That is a huge chunk if not all of the profit on some smaller items. As we are now a plastic society, the per use fee should be eliminated. On top of that is all the rewards programs that are a benefit to the credit card company with the merchant footing the bill.

I doubt this would be a problem if the credit card companies truly had to compete.

In any case, there is little anyone can do about it so one just needs to factor in the cost and worry about the costs one can control.
 
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Why do we have to pay these fees to begin with? I think it is the equivalent of being ripped off.
 
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SolutionsGal:
Per the card associations rule you can’t assess a surcharge for a Visa/MC transaction even if it is a debit transaction. The first non-compliance notice is a call or visit from your representative. The second notification is by mail, and the third is a notification of the fine of up to $5000.00 and the merchant is put on the Terminated Merchants List. Which means you can never accept cards again under your business/owner name.
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I got a letter from my states Attorneys General office threatening criminal prosecution for charging a 50 cent fee on credit card orders. Now we discount our delivery fee 50 cents for cash orders. Exactly the same net result, but legal.
 
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on the outside it looks very simple fix the cc should offer any thing under 10.00 is excluded from the transaction fee and is strictly a percent biz…but they will not do this because they THINK it cuts in there profits but in reality they would not have merchants persuading them to pay with cash and would make up that difference.
also when customers come up to add on don’t you just adjust the total instead of re sliding…we batch out at the end of the evening so it isn’t extra when someone has already paid and wants to add a carry out coke
 
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As a related issue, why does it 48 to 72 hours to get funds deposited into my account? The money is withdrawn immediately…
 
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It shouldn’t take any longer than 48 hours to get your deposits unless it is over the weekend. The way the process works is 24 hours to be verified and moved from the card holders account and 24 hours for your bank to verify and receive the transfer. Some processing companies are going to next day funding, but you have to settle at 3:00 pm (est). They are just fronting the money, they really don’t have the funds yet. Downside to this is they may make you open a checking account with their bank. I think that next day funding will become the norm in the not so distant future, at least that is my hope. The only time it should take longer to receive your funds is on the American Express transaction, they take forever.GRRRRR
 
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The reason they do not do these improvements is because they don’t HAVE to. That’s the problem with a virtual monopoly.
 
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Banks do this to add to their enormous “Float” Just imagine they are holding your $500, times how many other people they’re doin it to. The interest is huge!
 
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So, I just opened my e-commerce visa/mastercard statement and read this:
…also effective October 2009, there will be separate line items on your merchant statement for the Visa Misuse of Authorization Service Fee… will be assessed on authorizations that are approved but never settled with your daily batch, as these can adversely impact cardholder’s open-to-buy, leading to increases declines and confusion at the point of sale.
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Well, duh! The clear solution is to charge me a fee - much better than providing a means by which to remove canceled authorizations.

At least my merchant service is passing them along to me “with no markup.”
 
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brad randall:
So, I just opened my e-commerce visa/mastercard statement and read this:
…also effective October 2009, there will be separate line items on your merchant statement for the Visa Misuse of Authorization Service Fee… will be assessed on authorizations that are approved but never settled with your daily batch, as these can adversely impact cardholder’s open-to-buy, leading to increases declines and confusion at the point of sale.
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Well, duh! The clear solution is to charge me a fee - much better than providing a means by which to remove canceled authorizations.

At least my merchant service is passing them along to me “with no markup.”
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How stupid. 99% of the time the reauthorization is needed because the customer makes a change to their order.

I bet VISA would cry foul if we try and pass this fee along to the customer… :roll:
 
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Registered Guest:
brad randall:
So, I just opened my e-commerce visa/mastercard statement and read this:
…also effective October 2009, there will be separate line items on your merchant statement for the Visa Misuse of Authorization Service Fee… will be assessed on authorizations that are approved but never settled with your daily batch, as these can adversely impact cardholder’s open-to-buy, leading to increases declines and confusion at the point of sale.
Click to expand...
Well, duh! The clear solution is to charge me a fee - much better than providing a means by which to remove canceled authorizations.

At least my merchant service is passing them along to me “with no markup.”
Click to expand...
How stupid. 99% of the time the reauthorization is needed because the customer makes a change to their order.

I bet VISA would cry foul if we try and pass this fee along to the customer… :roll:
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Easy fix, do it in a way where they don’t know. Raise menu prices to compensate.
 
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