He's showed me bank statements, things like 'points' and 'cashback' and other 'features' of the card all seem to come back to the merchant as deductions against the amount billed vs the amount payed. He summed up the total billed (what he charged at the register) and the total deposited, and computed the difference, that difference was 8.5% rounded to the first decimal place.
Sure if he's doing small transactions but in general you shouldn't be allowing people to use a credit card to make a $2 purchase, right?
What is defined (in this thread) as "most cash businesses" would be to me businesses that would typically allow someone to pay with a credit card.
That wouldn't be a local bodega allowing some to pay for a pack of gum with a credit card. It would be a business allowing cc use in a typical case where the per transaction charge is not significant and you don't stand to loose business because you don't accept credit cards.
Examples:
You run a restaurant and your average ticket is $45. If you don't accept cc's you will generally loose business.
You run an ice cream stand and your average ticket is $5. Less expectation of being able to (or needing) to use a cc for a small transaction like that. Chance of loosing business: significantly less.
Entirely possible. for a long time in California it was illegal (state law) to require a minimum purchase amount in order to use credit cards I believe (but can certainly be mis-remembering) that this was only recently changed. And yes, his business does include a lot of 'small' transactions like someone coming in to get a key made etc.
Comments
He's showed me bank statements, things like 'points' and 'cashback' and other 'features' of the card all seem to come back to the merchant as deductions against the amount billed vs the amount payed. He summed up the total billed (what he charged at the register) and the total deposited, and computed the difference, that difference was 8.5% rounded to the first decimal place.
Sure if he's doing small transactions but in general you shouldn't be allowing people to use a credit card to make a $2 purchase, right?
What is defined (in this thread) as "most cash businesses" would be to me businesses that would typically allow someone to pay with a credit card.
That wouldn't be a local bodega allowing some to pay for a pack of gum with a credit card. It would be a business allowing cc use in a typical case where the per transaction charge is not significant and you don't stand to loose business because you don't accept credit cards.
Examples:
You run a restaurant and your average ticket is $45. If you don't accept cc's you will generally loose business.
You run an ice cream stand and your average ticket is $5. Less expectation of being able to (or needing) to use a cc for a small transaction like that. Chance of loosing business: significantly less.
Entirely possible. for a long time in California it was illegal (state law) to require a minimum purchase amount in order to use credit cards I believe (but can certainly be mis-remembering) that this was only recently changed. And yes, his business does include a lot of 'small' transactions like someone coming in to get a key made etc.