Merchant fees are killing me

posted by Jeff | Wednesday, June 10, 2009, 6:30 PM | comments: 4

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.



June 11, 2009, 12:40 AM #

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.


June 18, 2009, 12:27 AM #

Why do yo think places like Target, Sears and others want you to have their card. They get a huge discount on these rates.


June 18, 2009, 12:29 AM #

BTW: Like the new look, but if you click on my name, it mixes your url w/ mine...


June 18, 2009, 12:54 AM #

That's because you left off the http://

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