Articles tagged with: transaction fees
Credit Card Blog »
Rocked the new aldi on park row. Great prices! Only bummer…no credit cards.
The reason? Aldi doesn’t take credit cards in order to save on transaction fees.
Those fees are the reason many discount stores don’t take cards. Transaction fees can add to overhead, and when discounts are important, those fees can raise prices.
Credit Card Blog »
Delsuggs posts about some news that’s been bubbling around the blogosphere:
Your cell phone can accept credit cards!
He links to an article about Square, a Twitter founder’s new device.
What is it?
It’s a simple hardware device that plugs into an iPhone or iPod to help consumers accept credit card payments.
Right now, the details seem half-baked to us (at least reading the article). It’s unclear how transaction fees, transaction percentages, and other specifics will be handled. We’re guessing that the sole business model won’t be the 1$ fee Dorsey suggests, …
Credit Card Blog »
JoeCaruso notes an interesting Costco policy:
Costco to accept food stamps nationwide… They don’t even accept Visa or Mastercard in their stores…
The reason is actually simple: transaction fees.
Costco probably refuses to accept credit cards for the same reason convenience stores do: they want to avoid fees charged by credit card companies on a per transaction and percentage basis. These transaction fees often create costs that wipe away profit margins for merchants.
Food stamps involve processing fees as well- however, they are usually a smaller percentage or transaction fee than …
Credit Card Blog »
CharleneDavis highlights a possible trend:
Two grocery store chains attempt to ban check writing: http://bit.ly/12QcOInteresting because a few vendors no longer process credit cards
The story makes an interesting point- in a lot of cases, the most popular method becomes the most convenient method for merchants, even if it costs them more.
Checks used to be one of the most popular payment methods. Apart from any bank-imposed fee, they are free for consumers and deduct money directly from the consumer’s account. …
Credit Card Blog »
Bgcallam is curious about convenience stores and credit cards:
If you’re a convenience store, what reason besides tax evasion would you not accept credit cards?
Why do some convenience stores refuse credit cards? Simple- every time a customer uses a credit card, it costs them money.
The National Association of Convenience Stores has lobbied to change the way that credit cards and convenience stores work together. The processing and transaction fees card companies charge frequently sap away whatever profits a convenience store makes. A representative of the Circle K chan …
Credit Card Blog »
Entrepreneur mdjensen tweets that he’s looking for the best way for his customers to pay online:
If I offer Google Checkout and PayPal, is that enough or do people just want to put in a credit card? Please respond, I need to know!
Before we can determine which is the best way for customers to pay online, we should review the three most popular options for paying on the web: Google Checkout, PayPal, and traditional credit cards.
Google Checkout …
Credit Card Blog »
We were feeling hungry after Johnny_Watkins tweeted:
I’m pretty sure the invention of vending machines that take credit cards is the universe’s way of saying its OK to get 87 Snickers bars.
As you might guess, it also got us thinking. We can’t speak for the universe, but we do know that vendors would be more than happy if you bought 87 Snickers bars- assuming the machine can fit that many in the first place.
According to the vending machine gurus at VendingMarketWatch.com, the vending machine industry’s initially testy …
Credit Card Articles, Credit Card Glossary »
Per Transaction Fees and Your Purchases
Though they may occur whenever you use a credit card, many consumers are not aware of per transaction fees. By understanding these fees, you can understand the full costs associated with your purchases.
What Are Per Transaction Fees?
Per transaction fees frequently affect merchants. When a merchant processes a credit card transaction, they usually pay a per transaction fee to the credit card company. This may be in combination with or instead of monthly fees or volume based fees credit card companies impose.
How Do Per Transaction Fees …
Credit Card Articles, Credit Card Glossary »
Clarifying Prepaid Credit Cards
Each financial product you encounter has different specific conditions. “Prepaid Credit Cards” can be an especially confusing term for new consumers. By understanding how prepaid credit cards differ from normal credit cards, you can decide if they are the right card for you.
What Are Prepaid Credit Cards?
Prepaid credit cards are plastic cards tied to an account you have established with a credit card issuer. When you make a purchase using a prepaid credit card, the merchant draws directly from the money you have in your prepaid credit …
