Name:   Lifer - Subject:   Credit cards Date:   2/26/2015 12:25:20 PM

MM you are right about AMEX and their discount rate to retailers.  When last I was dealing with them my MC/Visa was at about 2% while AMEX was 4.5%.  Anytime I got to working off a close margin I would ask the method of payment they planned to use.  Some times I might be as low as 10-12% margin in order to close a larger sale and AMEX would take nearly half of it.  In some instances I would even ask cutomers to write a check instead of using plastic due to the cost of taking credit cards.  Most folks don't realize that processors also charge a 'transaction fee' to the retailer that could be anywhere from 5-25 cents each time they swipe a card plus the discount rate.  On top of that the industry also charges retailers as mcuh as they can get away with for a 'statement fee'.  I have seen that fee anywhere from $5-25 per card per month.  A fee for simply mailing a statement!! Now it is usually email also.  They really stick to small and medium size retailers because they have them by the gonads.  They don't have enough clout to negotiate good rates but absolutely must take plastic in todays world.

Just last week I advised an aquaintence to drop her acceptnace of CC's.  She has a small but successful resteraunt that seves lunch and breakfast buffet only.  She has priced the buffett at $10 tax and drink included.  I told her to put in an ATM for folks that dont carry cash.  Wtih and ATM they will actually pay her for each transaction.  Last year she paid over 10K if fees for taking plastic.

Then there is one of my pet peeves, the 'conveience fee'.  NEVER pay one.  It is illegal for the retailer to charge.  Only government and quasi-governmental agencies are allowed by law to do so.  Although I really feel the pain of the retailers if folks refuse to pay the fee in big enough numbers it will make the industry fight harder for fair practices. It is legal to set a 'minimum purchase' to use plastic but not to pass their fees onto the consumer.  These laws are passed under the guise of consumer protection.  Just another way the government really puts the screws to small business.