Quote:
Originally Posted by TiltonBB
True, but that doesn't take into account the rest of the gross receipts that are reduced by 3 to 5% because of credit card fees. If you are operating a business that profits 15% of their gross a year the credit card fee is a big hit. If you have a $50,000 month you could lose $1,500 to $2,500 in credit card fees. And, you have to wait a month for your money.
A friend of mine who had a small independent gas station and C store lost money every time someone used a credit card. He had to stay competitive but the markup on gasoline is not that high. He finally gave up and took the tanks and pumps out.
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First I said that it would cover the first 15k not all but you are also grossly overstating the credit card processing cost. Amex is a flat 3% (which you do not have to allow your customers to use) and Visa, m/c and discover are just 1.2-1.3% no were near 3-5%
I seriously doubt he lost money on CC sales that would mean he was working on an extremely low 1.5% or less which is highly unlikely