If you accept credit cards at your shop

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Forum topic by Lee Barker posted 02-24-2011 07:26 PM 1781 views 1 time favorited 10 replies Add to Favorites Watch
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Lee Barker

2170 posts in 3091 days

02-24-2011 07:26 PM

I’m in a business group and the subject of credit card processing companies came up. Business people are having difficulties in this area.

It is reasonable to assume that the CC companies are having financial/business challenges of their own. They are very much in control, given the complexity of the contracts that we sign and that we give them access to our accounts to both give and take.

I had noticed increasing deductions from my account.

I have made the decision to no longer accept credit cards. Fortunately, I had not leased or purchased a machine. That seems to be the most difficult area of negotiation. But I did sign a contract for their acceptance services, and clear and honest communication with the company appears to have generated an early end to it.

If this subject is of interest on this forum, it will be interesting to hear success stories and creative options. I’d prefer our slant was toward solutions rather than just complaining. I’d like to stay away from that useless, downward spiral.



-- " his brain, which is as dry as the remainder biscuit after a voyage, he hath strange places cramm'd with observation, the which he vents in mangled forms." --Shakespeare, "As You Like It"

10 replies so far

View lanwater's profile


3111 posts in 3175 days

#1 posted 02-24-2011 07:42 PM


Not only they are charging the processing fee, they also charge the merchant the reward fees.
All those free miles and points they “give away”, they get charged to the merchant as well.
So the initial rate of 1.7% to 2.5% (and 4% for american express) end up being close to 5%.

Many merchant are unaware of those and many don’t factor those charges in the cost of their products.

One way to get around the automatic charge back is to have a checking account with no minimum balance that you assigne to the CC and another for your regular stuff.
One a credit comes in from the CC you transfer it to the other account where they have no access.

The best way probably is to go through paypal or similar service were dispute are a little harder.

Many people abuse the system.

-- Abbas, Castro Valley, CA

View sawblade1's profile


754 posts in 3268 days

#2 posted 02-24-2011 07:45 PM

I wanted to, but my local bank turned me down, what they wanted to cover me as a liability was 60% of my projected income as a deposit, sign a 3 year agreement, and turn over control of my business checking for a year due to my lack of sufficient credit :( This is the same reason I was turned down for a SBA 7a Loan as well even after writing a loan proposal, 45 page business plan and having 5 years tax returns. In my honest opinion they suck and they are wondering why they are struggling well they need us we don’t really need them as you have proven and I am out to prove that as well ;)

-- Proverbs Ch:3 vs 5,6,7 Trust in the lord with all thine heart and lean not unto your own understanding but in all your ways aknowledge him and he shall direct your path

View lanwater's profile


3111 posts in 3175 days

#3 posted 02-24-2011 07:54 PM

I forgot to mention that they will have tons of competition soon as new payment methods are rooled out.

There are a lot talk about paying with your phone, your trwitter account and many others. Some of those method will bypass the CC gateway and they won’t be collecting the extra charges they impose in those fee.

-- Abbas, Castro Valley, CA

View Lee Barker's profile

Lee Barker

2170 posts in 3091 days

#4 posted 02-24-2011 08:42 PM

NPR reported this week that in a few Starbucks shops in the US now you can pay with your phone. Closer than we might think, eh?

-- " his brain, which is as dry as the remainder biscuit after a voyage, he hath strange places cramm'd with observation, the which he vents in mangled forms." --Shakespeare, "As You Like It"

View superstretch's profile


1531 posts in 2934 days

#5 posted 02-24-2011 09:03 PM

I tend to be a bit more techie than most, so let me explain my setup.

Just about everyone I know has a ‘smartphone’ that is capable of paying someone (me) by simply tapping the two phones together. Yes, it sounds ridiculous, but its jaw-dropping.

For those that don’t have that ability, I’ve been able to take card #’s over the phone and in person with Square ( ). They actually just dropped their per-charge 15c fee and now just charge a flat 2.75% (better than paypal!). There is a $1000 daily limit (if I recall correctly), but there is the addendum that you can negotiate your way higher if you contact support. I’ve used it several times to split dinner bills, and its been spectacular.

-- Dan, Rochester, NY

View Puzzleman's profile


417 posts in 3185 days

#6 posted 02-25-2011 12:55 AM

Lee, I accept CC all the time, in fact most of my payments wholesale and retail are with CC’s. I have found that the higher the average ticket, the lower the fee. I also have processing companies calling at least twice a month wanting me to switch processors as they say they can save me money. I am currently paying about 3.1% with all fees included.

As far as chargebacks. they just deduct them from what they owe me if there isn’t enough money in the account. However, the best way to reduce chargebacks, is to include name and number with every purchase so if there is any questions or problems, I can resolve it first.

-- Jim Beachler, Chief Puzzler,

View longgone's profile


5688 posts in 3550 days

#7 posted 03-01-2011 06:47 AM

I have the Intuit Go Payment plan. It has a plan available with no monthly fees. It is used with my iphone and numerous other smart phones and they also provide a free card swipe device that plugs into the top of the phone. Low transaction fees and %.
check it out if you have a smart phone.

View Rydell's profile


18 posts in 2878 days

#8 posted 03-17-2011 07:05 AM

There’s also a new startup called Square. It was founded by the guy who started Twitter.

Their terms are exceedingly simple. There are no monthly fees and no startup fees. They mail you a free card reader that plugs into the headphone jack of a smartphone and download the free app. To use the service, simply open the app and swipe the card. Pretty simple. They simply charge a flat 2.75% fee on any transaction using any card(Amex included). Once you link your bank account to the service, your funds are deposited nightly into your bank account. is their site. Although I don’t own a business, I still signed up and got my reader earlier this week. I performed a couple test transactions and everything went through okay.

I’m sounding like a commercial, so I’ll hush now.

Edit: Just saw superstretch’s comment above regarding Square. Count my post as another kudos for Square.

View Wood_smith's profile


261 posts in 3266 days

#9 posted 03-18-2011 02:31 AM

Credit card companies facing their own challenges? Like what? Where to store all the money? Up here in Canada, you can get anywhere from 0-2% for your money in a bank, and pay 19.5% on a credit card balance.
I’d love to have that dilemma!

-- Lloyd Kerry; creator of the Kerry-All Pouch,

View Resurrected's profile


671 posts in 2933 days

#10 posted 03-19-2011 04:36 AM

The fees have been there for a while but banks are getting greedy and want to charge more for using plastic. A lot of retailers are fighting this but with a up hill battle at large. Banks are saying if the company don’t take the hit they will go after the consumer. Altogether I can see this as the little guy getting screwed. Just read about this in the wall street journal.

-- Who can I block now???????????????????????

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