Ferrari Mailing List: Re: Business Banking

[Brian E. Buxton (BrianBuxton]

Steve,
Most of what you wrote makes sense, and I have heard some things here 
and there about the free market system, but there are other things to be 
considered ...

<<Any merchant who chooses to accept credit cards must feel that they 
are getting something in return for the percentage they pay, otherwise 
why would they do it? It's a business decision. >>

Sometimes businesses are forced to.  If I had the choice I would not 
accept credit cards at all.  However, due to the amount of business I 
conduct out of state and outside of the country, it is a necessary 
evil.  Regardless of my margin, 3% of $500 here and $1,000 there adds 
up.  And reducing the cost of doing business is very important, because 
many times the margin isn't that much and won't increase with the 
increase in bank charges, etc.  As I'm sure you know, merchants get 
charged for having a credit card terminal in their business or office 
(whether it is used or not), they are charged more for a printer, and 
(as you stated) they are charged a percentage of every transaction.  And 
in my case there is more cost because I have to pay for a dedicated 
telephone line just for the cc terminal.

The banks and credit card co's make plenty of money off of all the 
transactions, all of which increases my cost of doing business, and 
decreases my margin and greatly increases my possibility of loss due to 
credit card fraud.  In 11 years I have never received counterfeit money, 
a bad check, nor had my bank refuse any cash that I deposited.  However, 
I have been taken MANY times by stolen or fraudulent credit cards, and 
they bank ALWAYS has removed money from my account in the end.  And I 
PAY for this "service" every month.  I can understand the logic behind 
what you wrote, but if I went into a business where I couldn't pay a 
$5.00 check in cash I wouldn't shop there.  I accrue six figures of 
points every year on my credit card without adding 50 cents here and 
$2.00 there.  And in something like a coffee shop I just don't see the 
logic.  Even in our music store we very rarely take cash to the bank.  
Most of it goes into a safe and is re-used daily for change in the cash 
register.  Same thing with coins.  We never deposit change (even from 
soda and snack machines) as it is always re-used ...

Brian