4 ms·
After setting up my first merchant account for online credit card processing this year, I have to disagree whole heartedly. Rewards program cost the seller of
by cullenking 16y ago
After setting up my first merchant account for online credit card processing this year, I have to disagree whole heartedly. Rewards program cost the seller of goods. The fancier the card (platinum, cash or frequent flyer programs) the more it costs the seller as a percentage of the transaction. This is why many places refuse to take AmEx. They have high monthly account fees, and their per transaction percentage is considerably higher than a plain old visa.
- cd34 16y agoMy AmEx merchant account carries no monthly charge. I do pay a higher discount rate for American Express than I do for MC/Visa/Discover - roughly 1%. I certainly don't pay higher rates because someone uses a rewards card. Nor do I pay a higher rate because someone uses a Gold, Platinum or Black AmEx Card. My discount rate is affected by qualifying discounts, i.e. AVS, AVS+Address, non-AVS. I find it in my best interest to make it as easy as possible for clients to pay me. If I have to pay a percentage point to make it easy for a client to hand me money, I'll gladly take that as a cost of doing business.