A couple of years ago I vowed to try not to use my credit card for any local businesses after I found out from my local food co-op how much credit card fees can add up. At our annual meeting they asked us to think twice about using our credit card. That year they had spent $65,000 in credit card fees! Whew!
As a potter I started to accept credit cards three years ago, knowing (I thought) full well about all the fees. I must admit… people do buy more when they have that little card with them. So the reality is that I have made more sales since accepting credit cards. But those darn fees… I just remind myself, ” it’s a write off on my taxes.”
This past week I started doing some research on the credit card app for the iPhone. I wanted to compare my current fees with what they would be with an iPhone app. It was then that I learned that not all transaction fees are equal. Did you ever think about when you earn bonus rewards, or flyer miles, etc. where that extra bonus money comes from? Each time you purchase an item from a merchant, the merchant pays a little extra in transaction fees. So in essence each time you buy a pot from me and earn your rewards points I pay 3.61% per transaction fee rather than the 1.92% standard fee for the non rewards card. Whew… that really made me think about the whole credit card industry! We all just so blindly use these convenient little cards without asking any questions. Like Forest Gump said, “well… that’s all I have to say about that!”