July 7, 2011
Ken,
I agree that credit card acceptance has many costs. But, I would suggest to any business owner to find a reliable bank or business that will work with you to find the best credit card transaction rates. The big banks really don't help small businesses with these fees.
We have a fantastic relationship with our merchant account representative, in fact he refers new business to us and we to him ~ and our credit card transaction rates, including American Express, are very competitive.
Carolyn Ambler
EBC Security LLC
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Ken,
you can get creative and call it a $2 convenience fee for paying it through a website that is a "billing company" and THEY charge the additional fee OR one main advertised price and offer a discounted price for cash may be your answer around the agreement.
Regards,
Bill Kouchis
Telnet Systems
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Ken:
Correct, but there is an acceptable work-around that many industries use.
Yes, you MAY NOT EVER charge a 'fee' of any kind whatsoever to a customer paying with a credit card. Doing so can get you placed on the industry's blacklist and you'll be unable to accept credit cards for up to 10 years.
Here's how you work around this (verified by three different credit card processing companies): Offer a cash discount. For example: 'Alarm System: $109.99 Cash Price: $99' or 'Alarm Monitoring: $29.99 Cash Price: $24.99'.
This is the only way around the credit card rules. Charging any type of 'fee' is going to get the company in trouble with their processor and a lot of consumers know the rules and will turn you in.
David L. Myers
Myers Protection Services
Indianapolis, IN