Credit Card rates paid by Businesses
- Thread starter mebearman
- Start date
G
G
Guest
It depends on the business and it depends on the card. There are over 100 different types of credit cards. Each has its own rate. A card that generates airline miles costs the business a greater percentage than one that does not. A high volume business pays less than a low volume business. This is no longer a simple question. It can range anywhere from 1.8% to almost 5%.
X2 for the wife's business. I think there are some other misc. fees to but don't quote me on that one.
anonomoose
New member
Unfortunately, there is nothing you can do about it, and if you decide to be a stand alone, and NOT offer credit to your customers, you WILL loose business....which would, no doubt, be a greater number than if you didn't offer it.
We are a credit card society...and staying out of that money train will cost you, as a business owner. Folks will just move down the line to find one of your competitors who does offer it and buy there.
We are a credit card society...and staying out of that money train will cost you, as a business owner. Folks will just move down the line to find one of your competitors who does offer it and buy there.
Anonomoose is right but it sure is a kick in the teeth when that big chunk-o-money is taken out of your account to cover credit card fees. Hardly seems fair; the customer buys from you, pays for it with a credit card, pays the bill off complete at the end of the month and has no charges; the business owner loses some of his potential profits to cover the credit card fees, basically for the customer. The business owner can do nothing but take it in the shorts.
anonomoose
New member
This is easy to compute....assume that NOT offering credit to your customers amounts to 5% of your business. Figure that profit then subtract it from your monthly credit costs, and I bet you find that it cost you more NOT to have credit. In reality, the number of customers lost, would be greater. Credit let's you float to the next pay day...and let's face it...tons of folks live paycheck to paycheck....which means the money isn't there to buy right away.
Yeah, charges suck...and customers pay huge too, because most the time they don't have it to pay off the charge at the end of the month...so they take a even bigger hit than the business does.
I think I read that the average American now has over $7,000 carried balance on credit.....many have far more than that.
polarisrider1
New member
depends on the program your set up with and how the card is used. We dropped our Card machine for paypal. Phone in orders were at 10% because of the risk card could be stolen. Swipping thru our machine was 3.5%. also depends on volume and size of charge. Paypal charges me 1.6% way better deal.
Hey the biz gets paid.........they luv it whole lot better than sucking up bad check losses. Nobody carries huge amount of cash now days. The world goes around on plastic including utilities clean & paperless. 
I don't like places that won't take CCs never go back if can be avoided.
I don't like places that won't take CCs never go back if can be avoided.trailshredder
Member
We pay 2.8%. We are becoming a cashless society. If you don't take credit you will not beable to stay in business. I would say at least 75 to 80 percent of our business is plastic.
my fav part is the state of MN you cant charge say 2or3% to take a CC and then you go to the state office to buy tabs or what ever and they dont take cards because it costs to mutch money.I quit the whole cc thing just not that many people pay me with cc if they realy want I make them do paypal and pay the fees no law with that yet. prob only 1or 2 a yr for me
Last edited:
That's a bunch a BS.
polarisrider1
New member
Been in business 31 yrs. Taking plastic only has made the banks money not me. If you need to use a card, a machine is down the street for a cash advance. I take checks and have only had 2 bounce in all this time. I tell the customer, "Don't write it if it won't clear, My wife likes furniture, motorcycles and Mercedes Benz". "All of which we accept as payment". If your a gas station I can see taking cards as manditory. But If you want me you need to talk to a bank first anyways. Not all businesses are alike thats why we have multiple forms of payment.
G
G
Guest
I doubt we will ever be a cashless society. However it is the IRS and not the credit card companies that would love to see us cashless so they can track our every move and supposedly eliminate all fraud. Who knows? I hope I am dead before then.
michaeladams
New member
i've seen where the cash price is less than the credit price.mostly with gas but have seen it personally other places
That's the whole point. I agree, at least in the c-store business with gas you take credit cards, that's just the way it is. Still hurts when that big chunk of money is taken out of your account, the bank is using your profits to finance their CC program.