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Per transaction fees in finance really suck. I struggle a little to understand why more merchants don't get rid of them.. as it still encourages cash for smalle

Per transaction fees in finance really suck. I struggle a little to understand why more merchants don't get rid of them.. as it still encourages cash for smaller transactions at shops. Really confuses me. I guess they are smarter than me.

scottostler 8y ago
I’ve been told the answer is interchange fees: https://en.m.wikipedia.org/wiki/Interchange_fee https://en.m.wikipedia.org/wiki/Interchange_fee
clintonb 8y ago
> I struggle a little to understand why more merchants don't get rid of them... Why is this a struggle? The reason is obvious. Most individual merchants have little, if any, bargaining power. Once you get big enough, you can negotiate lower rates, but you will almost always pay a percentage per transaction. Encouraging cash isn't necessarily a good thing. Some customers (like me) like the convenience of paying with a card. If a merchant doesn't accept credit cards, I probably won't make a purchase since I rarely carry cash.
- ddingus 8y ago
  Encouraging cash is a great thing. I make sure to patronize and speak up about cash where I know the merchant will get the message.
  - lathiat 8y ago
    It may be a great thing for consumers, but it doesn't seem like a great thing for electronic transaction processors
    - ddingus 8y ago
      Priorities. Mine are definitely aligned with ordinary people long before payment processors. Ever had bad things happen? I have. Cash counts then. Payment processors not so much. Now do not get me wrong. The processors are not doing anything wrong. I am not making a statement against them at all. Just not one for them. Not a priority, put simply.
djsumdog 8y ago
I've never owned a store, but I imagine there have to be processors that charge only the percentage available to most states, even for small businesses. But maybe not? I don't think the major EFPOS providers in New Zealand charge a per transaction fee, because most bars will let you ring up ever single drink individually if you want.
- lathiat 8y ago
  I think it is very country dependent. In Australia it seems hard to get stuff without the 30c fee.

scottostler 8y ago

I’ve been told the answer is interchange fees: https://en.m.wikipedia.org/wiki/Interchange_fee https://en.m.wikipedia.org/wiki/Interchange_fee

clintonb 8y ago

> I struggle a little to understand why more merchants don't get rid of them... Why is this a struggle? The reason is obvious. Most individual merchants have little, if any, bargaining power. Once you get big enough, you can negotiate lower rates, but you will almost always pay a percentage per transaction. Encouraging cash isn't necessarily a good thing. Some customers (like me) like the convenience of paying with a card. If a merchant doesn't accept credit cards, I probably won't make a purchase since I rarely carry cash.

ddingus 8y ago
Encouraging cash is a great thing. I make sure to patronize and speak up about cash where I know the merchant will get the message.
- lathiat 8y ago
  It may be a great thing for consumers, but it doesn't seem like a great thing for electronic transaction processors
  - ddingus 8y ago
    Priorities. Mine are definitely aligned with ordinary people long before payment processors. Ever had bad things happen? I have. Cash counts then. Payment processors not so much. Now do not get me wrong. The processors are not doing anything wrong. I am not making a statement against them at all. Just not one for them. Not a priority, put simply.

djsumdog 8y ago

I've never owned a store, but I imagine there have to be processors that charge only the percentage available to most states, even for small businesses. But maybe not? I don't think the major EFPOS providers in New Zealand charge a per transaction fee, because most bars will let you ring up ever single drink individually if you want.

lathiat 8y ago
I think it is very country dependent. In Australia it seems hard to get stuff without the 30c fee.