FAA Investigates American Flyers

Rosspilot

So what do you do?. Just add your cost of CC service to the posted
price? If someone comes in and pays cash then you make more profit?

Big John

On 04 Nov 2003 17:08:49 GMT, ospam (Rosspilot)
wrote:

I take credit card payments all the time and can say with certainty that both
Mastercard and Visa prohibit their participating merchants from charging more
for using the credit card. It may not be illegal, but it violates the
merchant's contractual obligation to MC and Visa.
www.Rosspilot.com

"Ron Natalie" wrote in message
. ..

"Newps" wrote in message
news:ygdqb.113585$Fm2.101748@attbi_s04...



Must be an eastern thing, never heard of that.

Actually, it's an "internet bank" thing. Since these have no brick and
mortar branches (and
hence ATM's), they will generally credit you the charges back for whatever
ones you do use.

Considering it costs about $100K for each ATM, plus periodic maintenance,
it's great business sense for the eBanks to use competitors machines (which
are in place, at great cost) and just refund the fees the ATM owner charges.
Their customers would have to use EACH SINGLE ATM machine 30,000 to 50,000
times to cover the cost of having their own.

"'Vejita' S. Cousin" wrote in message
...
In article ,
When Debit cards came out a few years back, many merchants were charging
about 25 cents for DEBIT transactions until it was widely pointed out
that a
debit transaction cost much less (one cent) than processing a paper
check.

The AM/PM gas stations (ARCO) around here kept the practice in place for
about two years after the other merchants went to doing it free. I
stopped
going to those stations and don't know if they STILL do it.

I've always wondered why I can use my debit card w/o a service charge
any place EXCEPT a bank I can even get cash back, but there's no extra
fee. But if I go to a cash machine...

Because the machines in place at merchants are paid for _by the merchant_.
The ATM machines you use from a competitor bank cost the competitor bank
around $100,000 to install and setup.

"Kevin McCue" wrote in message
...
Compass Bank in AZ will rebate any bank's ATM fees.


Because they own no machines outside their own locations (typically
Albertson's food stores).

"Tom S." wrote in message ...
"Ron Natalie" wrote in message
. ..

"Newps" wrote in message
news:ygdqb.113585$Fm2.101748@attbi_s04...



Must be an eastern thing, never heard of that.

Actually, it's an "internet bank" thing. Since these have no brick and
mortar branches (and
hence ATM's), they will generally credit you the charges back for whatever
ones you do use.

Considering it costs about $100K for each ATM, plus periodic maintenance,
it's great business sense for the eBanks to use competitors machines (which
are in place, at great cost) and just refund the fees the ATM owner charges.
Their customers would have to use EACH SINGLE ATM machine 30,000 to 50,000
times to cover the cost of having their own.

Just a minor correction. It costs nowhere *near* $100,000 for an ATM.
Cash dispensers can cost as little as $10,000, while good full-service
ATMs can be had for $25,000. We just installed a new drive-through ATM
at one of our branches. Total costs for the ATM + installation came to
under $32,000. The ongoing costs are significant, but certainly not
outrageous. The breakeven numbers for cash dispensers in particular
are very low indeed.

Cheers,

Cap

On Tue, 4 Nov 2003 21:18:06 -0800, "Peter Duniho"
wrote:

My understanding is that the rules do not differentiate between the two
situations. If customers are granted a lower price for not using a credit
card, that's in violation of the merchant agreement. No matter how it's
worded.

Quite possible - it had been a while since I looked at that, but
that's how I remember reading it 'somewhere', but I don't remember
where that was.

aw

"Tom S." wrote in message ...

Considering it costs about $100K for each ATM, plus periodic maintenance,
it's great business sense for the eBanks to use competitors machines (which
are in place, at great cost) and just refund the fees the ATM owner charges.
Their customers would have to use EACH SINGLE ATM machine 30,000 to 50,000
times to cover the cost of having their own.

The cost would also involve finding someplace to put it. Perhaps with some national
aliance with some place like 7-11 or Exxon stations could do it, but otherwise they'd
have to real scramble to arrange with people to allow them to install these things.

By the way, I only paid $20 for my ATM, and I think I bid too high.

Rosspilot

So what do you do?. Just add your cost of CC service to the posted
price? If someone comes in and pays cash then you make more profit?

Exactly. I look at several things . . . first,
the margins on what I sell are sufficient to absorb the small percentage taken
by the CC company. Second, it is safe to assume that if you don't accept the
card, some customers might not buy anything at all. THAT cuts the profit
significantly G.
Third, the cost of accepting CC is more than offset by the immediacy of getting
paid. No reminders letters, statements, waiting for 30 days, etc. The money
is in my operating account within a day.


www.Rosspilot.com

On Wed, 5 Nov 2003, Doug wrote:

Although I understand your frustration, I would throw in the towel and
get with the credit cards. Cash is going to be obsolete and so are
checks. Credit card and wire transfer are going to be King. It's just
the way it is, more convenient, faster for everyone. Your customer loves
them. It's what is happening.

Maybe customers wouldn't love them as much if they knew how much they add
to the cost of their purchase. Credit card sales cost merchants a lot
more than most people realize. Of course, that comes out of the
merchant's pocket... but where do you think the merchant's money comes
from? All in all, cash is a much better deal for both customer &
merchant; the only ones who win when a credit card is used are those in
the business of issuing credit cards or processing transactions.

-Dan

wrote in message
rg...
On Wed, 5 Nov 2003, Doug wrote:

Maybe customers wouldn't love them as much if they knew how much they add
to the cost of their purchase. Credit card sales cost merchants a lot
more than most people realize. Of course, that comes out of the
merchant's pocket... but where do you think the merchant's money comes
from? All in all, cash is a much better deal for both customer &
merchant; the only ones who win when a credit card is used are those in
the business of issuing credit cards or processing transactions.

On significant purchases where I am going to use a credit card I ask if cash
would be preferrable and in 99.9% of the cases merchants say they prefer the
card.