Do you take credit cards?

For us points junkies that love using credit cards we hate to hear, “I don’t take credit cards.” This is extremely annoying when you go to pay for something with your favourite points card only to be told, “sorry we don’t take that card.”

If you are unfamiliar with the way credit card processing companies work I’m probably a good candidate to tell you about it. I worked for a software company that supplied online credit card processing. I have a good understanding about the business and know the reasons why many merchants don’t take certain credit cards and along with their fees associated with credit card processing.

The truth is, credit card processing can easily add up to hundreds if not thousands of dollars for merchants so it’s in their best interest not to take certain cards. Some of the American Express cards like the Platinum can charge between 3-8% on any single transaction which for some merchants with low profit margins means profits can easily be eaten away. Not only are the fees expensive so is the turnaround time for deposits. Merchants can wait up to almost two weeks before they see their money be deposited into their account.

My response to merchants when I worked for the online processing credit card software company was – to always give customers as many ways to pay you that way you will more than likely get  the sale.

That was back a few years ago but with credit card readers there is no excuse for any merchant not to take credit cards these days! The credit card processing market is getting extremely competitive with new companies popping up all the time offering unbeatable deals and these guys are charging a flat rate of  2.69% on all transactions. This company also doesn’t charge for set up fees or any monthly monthly fees. Pretty darn competitive if you ask me.

To give you an idea of some fees besides the transaction fee that ranges from 2% to 8% here is a small list. Really there are hundreds of fees that banks love to charge.

• Monthly fee
• Annual fee
• Set Up fee
• Statement fees
• Fraud Prevention fees or
• Authentication fees
• Batch processing fees
• Pre-Authorize transaction fees

These are just a handful of the 100’s of fees that can be added on to credit card processing.

As you know I love saving money where ever I can and if you read my blog you probably do too.