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Going to $0.20 on two-tier pricing?


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Is anyone going over the standard 10 cents?  It would give quite a boost to my bottom line but it seems like a bit of a ripoff to the customer but if everyone else is doing it, I would too.

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4 hours ago, Vendo Mike said:

I'm not an operator but my 2 cents...

If you realize that it's  "a bit of a ripoff to the customer", it shouldn't matter if someone else is doing it.  

I mean paying 45k for my used van felt like a ripoff and seeing 5k+ price tags for vending machines feels like a ripoff but here we are today lol

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Funny, I was wondering the same thing today.  I have a very high volume, high priced, commissioned account that the dime doesn't cover the fee.  I was going to inquire about changing the fee on that particular account. 

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There was a ruling 6 or 8 years ago that if by a certain date you were not charging more than a dime, you will not be allowed to. Only those companies that already were got grandfathered in. Unless something has changed, you're way too late.  

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As far as I can tell credit card companies certainly allow surcharging, but the exact laws vary by state. It looks like Connecticut & Massachusetts are the two states that don't allow  it, and every state appears to follow a 3% of the transaction surcharge maximum. Colorado allows for a max of 2% of a surcharge, but are also given the option to match the processing fee, which then allows them to exceed the 2% threshold. 

 

Most important thing I can find basically says to make sure the increased cost is made plain to the customer, like it is on most vending machines. 

 

 

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Standard 10 cents??  I would consider that ridiculously low. You're not actually sweating raising that by ten cents are you?  Obviously, you're not factoring in the cost of installing, maintaining, accounting and service calls for the reader. That rip off to the customer comment is nonsense. I guess it depends on where you're at but being somewhere where you feel guilty breaking even or even making a few cents is nowhere I would want to be. 

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The card fees aren't meant to be a profit center but just a recovery of transaction fees. Your cost of the reader, the install, the cost of accounting and the cost of repairs are are all costs of doing business. Your product pricing is what covers those costs. If the .10 fee covers your actual transaction fees then that's all that is warranted. If you make a little bit off the .10 fee then that's fine. If .10 doesn't cover your transaction fees then a jump to .20 is warranted along with whatever tiny bit might be left over for you. 

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