Is there credit card charge backs with Credit card readers?

[anyvendingcom]

Few question to vendors with Credit Card Reader or knowledge:

Is there credit card charge backs with Credit card readers on the vending machines?

If so, how much are the charges and what is the apporximate rate?

What if the person didn't get the item and wants a refund, who refunds this amount back

to their credit card?

Thank You

[Sparta_Automation]

Any charge on a creditcard can be disputed and returned....nature of the beast. I have had several card readers for 3 years and I have yet to have a single chargeback. With USA Tech, they take care of any customer service and returns that are initiated....you would need to contact them for exact fees. As far as them not getting their items, if they dispute it, it will be refunded by the creditcard servicing company (USA Tech). Alot of time, machines in an office environment, you will often just find a sticky note saying that the machine owes them.

Also, every machine that you have should have contact information on it so that customers can report issues and request refunds.

Travis

[anyvendingcom]

Any charge on a creditcard can be disputed and returned....nature of the beast. I have had several card readers for 3 years and I have yet to have a single chargeback. With USA Tech, they take care of any customer service and returns that are initiated....you would need to contact them for exact fees. As far as them not getting their items, if they dispute it, it will be refunded by the creditcard servicing company (USA Tech). Alot of time, machines in an office environment, you will often just find a sticky note saying that the machine owes them.

Also, every machine that you have should have contact information on it so that customers can report issues and request refunds.

Travis

Thanks for the response. I will check them out.

Do you get information on type of sale? (item number, amount, etc...)

[Sparta_Automation]

Yep......

USATech.pdf

[AngryChris]

Since this topic is rather fresh, I have a question of my own. I consider myself a mixture between a manager and an entrepreneur to be honest (as I don't really do anything "new" for the business except find better ways to increase sales and increase efficiency). However, I have seriously considered installing credit card readers.

Here is my question (that I could find elsewhere, but why not discuss it here!?): Is there a different charge for credit card transactions vs. debit card transactions? To ask this differently... do you get charged more/less for using a debit card than you would for a credit card?

I have a few locations that I really think could benefit from a credit card reader (in terms of profits) but I really am only considering installing them in order to (a.) keep up with new technology and (b.) please my customers. I actually expect the readers to break even at best.

[Sparta_Automation]

From a cost to the vendor...no, the cost is the same regardless of what account the money (checking or credit) comes from. From the customer perspective, no, the cost for the item is the same, except of course on a creditcard purchase, you may end up paying interest on the purchase....but that is from the credit card provider and not from the vendor.

With the newest version from USA Tech, you have a option of providing a "discount" when paying for cash. So the vendor could post a sign that says something like, prices shown are for creditcard purchases. Cash purchases will receive a XXX discount.

Travis

[AngryChris]

From a cost to the vendor...no, the cost is the same regardless of what account the money (checking or credit) comes from. From the customer perspective, no, the cost for the item is the same, except of course on a creditcard purchase, you may end up paying interest on the purchase....but that is from the credit card provider and not from the vendor.

With the newest version from USA Tech, you have a option of providing a "discount" when paying for cash. So the vendor could post a sign that says something like, prices shown are for creditcard purchases. Cash purchases will receive a XXX discount.

Travis

Thanks and I was indeed referring to the customer's side of things. I am under the impression that someone has to pay a $0.25 debit card fee for the transaction, but maybe I have been at a complete misunderstanding.

I remember several years ago when credit card readers started to really gain popularity, people would complain about being charged something like $1.60 for a $1.25 soda. Perhaps the fees were much higher back then? P.S., these were with USA Tech if I recall.

[AZVendor]

Another thing to remember too, Chris, is that the customer may see a temporaty hold placed on their card at the time of the swipe. This hold will equal the highest priced item in the machine (could be a pretty high price in a frozen machine). That hold is later replaced with the actual total of the transaction, but this can cause some customer concern in the beginning. You will want to put a notice on the machine about this. USAT may have a label to use for this reason and USAT will also field all questions or concerns about the card readers and their charges via toll free number.

[Sparta_Automation]

Yes....this hold can cause unhappy customers, especially ones that use their cards multiple times in a day. We preauthorize $4 when someone uses a card. I once had a customer who used their card 5 times in one day and was mad when they had $20 held out of their account until the charges actually cleared. Did not matter that we had a note posted, nor did it matter when I explained to them that we had no ability to clear the hold on their account, that was something that their bank was responsible for.