rcashin: Credit Card Charges

[rcashin@juno.com (Robert P. Cashin)]

--------- Begin forwarded message ----------
From: rcashin
To: owner-aga-mcm-digest@thekrib.com
Subject: Credit Card Charges
Date: Wed, 23 Sep 1998 14:43:54 
Message-ID: <19980923.144309.6751.0.rcashin@juno.com>

Hi All,

        At the Falls Fish Festival AGA meeting, I spoke about the credit
card charges being excessive. Since then, I've compiled some data. Up
until April Fools Day ( how appropriate ) we were being charged 8.07%, on
the average over 16 months, of the amount charged as fees for the
process. Since then, the bank has imposed a $15.00 minimum on a portion
of the fees. This means we would not be charged the minimum if we had 15
transactions/month but we would be charged $1.00/transaction. With this
minimum in place we are donating 21.61% of the amount collected for the
service of collection.

        I called Merchant Services at the bank to see what we could do to
get it reduced. Basically, they said there is nothing we can do, short of
increasing the number of monthly transactions. When I suggested we would
look around, I was told that because this was an old account, both the
assessment fee and the monthly charge ( different from the monthly
minimum ) would be much higher now even at the same bank, and we are
unlikely to find better elsewhere.

        Furthermore, the contract we signed with the credit card company
prohibits us from discriminating against the card users by charging them
more for using the card. However, we can establish a higher price and
then offer a discount for cash or checks. We have been charged
$4.34/transaction since the minimum was introduced.

        Frankly, I'm not sure what to propose. I understand the value to
our overseas members of the credit card system, but we are loosing our
shirt on the deal. Your thoughts would be greatly appreciated.

                                        Bob Cashin.
--------- End forwarded message ----------

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