As a small business owner selling high ticket priced, low margin business, my profit margins are highly influenced by how people pay. Bank Transfer is free, debit cards attract a certain fee to process, double that for credit cards and I don't take Amex as the processing fee doubles again (not great considering our main sponsor!) People think that cards that give points and or cashback are paid for by their card issuer, but most of it is picked up by the retailer in inflated processing fees. A large payment by Amex could impact my profit margin by 30-40%.
I'm all for transparency, but I would price differently if I knew the majority of my business was by bank transfer and probably pack it in if the majority of business would be paid for on Amex. At the end of the day, the cost of points/cashback has to be picked up somewhere along the chain......
I'm all for transparency, but I would price differently if I knew the majority of my business was by bank transfer and probably pack it in if the majority of business would be paid for on Amex. At the end of the day, the cost of points/cashback has to be picked up somewhere along the chain......
