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Credit Card Processing Companies Complaint - Credit Card Processing Fees

Review by Dinamit on 2010-04-13
LAKE ELSINORE, CALIFORNIA -- I would like to know who we complain to regarding the fee's that credit card processing companies charge. I own a small business and for convenience of my customers I take credit cards for payment. I can never process a payment that arrives in the "qualify" category and find that even though I enter the payment following all of the guide lines stipulated by the processing company I still fail to process, ever, under the "qualify" rate. The credit card processing companies make money off of my sales transaction, the credit card issuer makes money off of the sales transaction and the purchaser receives frequent flier miles and bonus back points and I "PAY" for this transaction at the tune of about $6000.00 a year and get nothing for it but a receipt that the product has been paid for. This is wrong in so many ways, when I take a check to the bank to deposit it, they don't charge me to deposit it. Why should a processing company get these outrageous rates monthly? The Government is pushing everyone to use credit cards for various purchases and yet the small business man is paying out the nose for this, and it is illegal to charge the customer for the credit card processing fee's. I don't get bonus points or frequent flier miles to take a credit card, nor do I get interest for taking the credit card for payment. This is just wrong in so many ways. The person taking the credit card should not be charged at all, the person that is using the card should pay the processing fee's.
Comments:5 Replies - Latest reply on 2010-04-15
Posted by spiderman2 on 2010-04-13:
What you get in return for your fee is business from customers. You can turn your business into an all cash business if you would like, then you won't have to pay the fees. Most businesses build the fee into the price point of their product. It is called a cost of doing business. I'm not sure what you are talking about in the "qualify" rates, but at our business we do not give people cash back as a cost control measure. We aren't paying a fee on that money to be someone's personal ATM.
Posted by bcd on 2010-04-13:
As a small business owner I sympathize with the OP. Some business cards, debit cards, overseas cards, bonus points, and manual entry (on a card with a bad magnetic strip) are all additional expenses to the merchant. It angers me that I pay for the bonus points. It is a cost of doing business and has resulted in a cost increase to all of my customers.

Dinamit,
Increase your rates.
Posted by Dinamit on 2010-04-14:
spiderman: Thanks for you input, however if you look at the credit card processing fees with common sense you really can see that we the business owner are paying for the luxury of the customer to be able to use his "credit card", MC, Visa and other card issuers are making money off of the credit card user, the processing company is making money off of me the business owner for the luxury, the customer is earning cash back bonus, frequent flier miles and so on. It is against the law to charge a customer to process his credit card weather you "hide it" somewhere else in your cost of goods sold. I do admire your laid back attitude regarding this issue, however we work hard for our money and every government agency chips away at our business with new taxes and permits. We pride ourselves in keeping our specialty racing products affordable to our customers, if I attach every fee onto their invoice pretty soon they will go somewhere else for their racing needs. It irritates me that credit card processing companies charge up 3% plus .27 to simply process a transaction, you may not have a problem with them stealing your money, but I do!!!!!!!!!!
Posted by skelly39 on 2010-04-14:
Dinamit and bcd-If it makes you feel better, the pet store where I buy my daughter's frog food is a small business, and I ALWAYS pay in cash. The guy never said a word about fees, but I wasn't about to make him swipe my card for $4.99. Only after I gave him the cash did he tell me how much he appreciates it when customers pay in cash because of all the fees. Then he rang a bell over the register. Not sure why...but ok. Now if they would only carry the filters I need for the tank...
Posted by Dinamit on 2010-04-15:
Cash is always good but hard for customers to pay on a high end purchase, when we sell a race transmission for the $5000.00 + range, cash is a bit hard to come by. :) It irritates me that the Government has their hands in everything that we do but it really irritates me when it comes to small business, what people don't understand we pay the same permits, fees, taxes and so on that bigger business does and yet when it comes to credit card processing fee's big business gets the breaks, we don't. I feel that there are far to many business owners that have the complacent attitude of "oh well that's the way it is", this kind of attitude is what allows the different State, Local and other Government agencies to take full advantage of applying more fee's and taxes to run our businesses, this is just wrong!!!!!!!!

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