I finally got around to reconciling the business account today. Aside from the strange ending balance (2,222.22), I'm horrified at the amount I'm shelling out for merchant account fees associated with accepting credit cards. Because I do very low volume, and it's online, it's not easy to get a good deal.
I just did the math, and between the discount fees (3.61%), per item fees and various surcharges, I'm pissing away on average 9.5% for every transaction. That means a $20 CoasterBuzz Club membership sends $1.90 to the banks and credit card companies, before I even print or mail the card. How ridiculous is that?
Someone has gotta be able to do better than that.
The discount fee seems reasonable with a minimum of perhaps $.25 - $.35. It's the incremental transaction fees and charges that are BS .... I am researching these costs for my business and will be happy to advise if I find anything more reasonable. Small average ticket size and/or low volume has always been a tough issue to overcome. I actually sold merchant services a long time ago in a world far, far away.