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Your bosses' bank would have been charging him a cash processing fee. Easy to forget! A quick Google and found Danske UK's small business fees, 80p per £100 (o
by mattmanser 2y ago
Your bosses' bank would have been charging him a cash processing fee. Easy to forget!
A quick Google and found Danske UK's small business fees, 80p per £100 (or 0.8%). Without all the other costs associated that I mentioned that your boss took a lot of risks not handling. Obviously stores that 90% of transactions actually happen in can't take those risks.
And that 30% for a $5 is totally made up, that's not the fees charged.
I'm not from the US or Canada, but UK, so the first Google result is Square's fee that say 1.4% + 25p, so on £5 that's 32p, or about 6%.
Obviously that's for small transactions.
https://squareup.com/help/gb/en/article/5068-what-are-square-s-fees https://squareup.com/help/gb/en/article/5068-what-are-square...
Obviously bigger chains won't be paying anywhere near that much.
My point was cash has processing fees, and gave people some context for that.
- matthewdgreen 2y agoI checked my local US bank (Bank of America business account) and for business accounts the processing fee appears to be 0.3% with the first $5,000-20,000 per statement period exempted. That is approximately 1/20th of the card fee for that 5 pound transaction you gave. I think it’s easy to treat a factor of 20x as just another number. But at a certain point quantity is its own quality: the difference between 6% and 0.3% is so large that the second one might as well be zero.