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Thread: What percentage of sales are credit card sales

  1. #1
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    Mar 2008
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    What percentage of sales are credit card sales

    What percentage of your total sales are credit card sales and what are cash sales? I'm not talking about what cash sales are reported, but actual cash sales.

    We are seeing a huge increase in credit card sales and are approaching a 50-50 split. I don't know if it's the economy and people are using more credit, or if it's just more convenient for some to use credit cards.

  2. #2
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    Shep,
    If you do a search, I think you'll find that this was covered about a year or 2 ago. Unless you're wanting more updated numbers I was just assuming that you knew that. I don't think much has changed but I would bet that more usage of cards is becoming even more prevailant(spelling?).

    I think simply put, it's more convenient for people to use their credit cards. But I'll give you the breakdown of facts and my personal opinions about credit cards. And sorry not to hijack the thread and go on a rant but here I go.

    ****Disclaimer******(I realize we could argue all day long about what works for your place and others so I'm going to try to be unbiased here and provide basic info based on "general" business practices for bars/clubs/restaurants

    1. Convenience. Credit/debit cards are more convenient because it's a simple thin piece of plastic that holds no value other than a magnetic strip that contains information to access your bank account info through an ATM or credit card machine at a merchant.
    2. Theft/loss. Money can get stolen or lost very easily. A credit/debit card can get stolen or lost but you can prevent anyone from accessing the money available by calling your card company and stopping your card from being used. Once money is stolen or lost, it is gone and can be used right away.
    3. Spending amount/limit. Here's the tricky one so let me explain: When using a card compared to cash, people tend to spend more because they don't think about how much they have on their card. They just simply don't think about the amount of money available other than just knowing that whatever they have in the bank can be used. If it's a credit card, the limit could be endless for some people. This is good for businesses because people don't feel "constricted" when it comes to spending as compared to when they have cash. Reason? Once you've spent that $100 in your pocket and it's gone, it's gone. You can't spend anymore if you don't have anymore. However, with a card, you're only limited to either what you have in your bank if it's a debit card with a limit on a limit to available balance or if it's a credit card, it could be limitless or at last seem so to a point. Most people will forget about this and just keep spending. Good for businesses....bad for the people with the cards. Again, you can't do that once you run out of cash because once it's gone, it's gone. Bad for businesses but good for people so they don't spend more than they can or "should."
    4. Reality. Businesses WILL make more with a credit/debit card than cash. Argue all you want but if you do, you're only being naive to reality and fact. You can say you live in a small town and it's different or a city and it's different but although I travel all over and live in a city, I'm from a small town and go to them everyday so I know what's real and what isn't. I see how people spend and I know how they use their money. They use it by using a card and rarely pay using cash. People don't want to carry cash around with them because it's inconvenient and risky to lose or have stolen. Plus, you can track ANY AND ALL of your purchases with a card even without a receipt because you can simply look it up online with your bank (very convenient and saves you a lot of work by not having to write them down). Unless you keep ALL of your receipts or write down ALL of your purchases (which is extremely inconvenient), you can't track them with cash.

    **Bottom line** Businesses (especially bars/clubs/restaurants) should ALWAYS...ALWAYS...ALWAYS accept a credit or debit card NO MATTER WHAT. Reason being, people will spend more. When people don't have to think about how much they have, the limit is endless and therefore, they forget about it and just keep drinking. Good for bars. The thing is, bars shouldn't even make their guests go to an ATM because it gives them a reason to quit spending as much by making them "think" about how much they're taking out of their accounts each time they have to go to the ATM (which we all know we don't like to do). Even worse is if a bar doesn't have an ATM and does NOT accept credit/debit cards because if a person runs out of money but has a debit card, in order to buy more drinks, they will have to stop having fun, leave the bar to go to an ATM (possibly drive somewhere which could get them a DUI), and then search for an ATM. By the time they do all of this, they may decide not to come back to the bar. Not good for business.

    So why make a guest go through this? I don't know. I've never figured out why a bar owner only looks at the amount of money a bar can make from their perspective. A lot of bar owners see the ability to accept credit/debit cards as an expense because it does actually cost money to have a processing company process the information and put money into the bar owner's bank account. The problem is, a bar owner NEVER looks at it from the guest's point of view. I'm going to give you one.....mine.

    Here's the deal: The costs of accepting credit/debit cards far outweigh the alternative of NOT accepting them but in a positive way. I don't want to carry cash for many reasons but I like to use my debit card for many. When I'm at a bar and they say that they don't accept credit cards, I don't spend my money there. Why? Because it's not welcoming to insist that I adhere to their rules and/or policies by carrying cash when using a card is so simple and I don't carry cash. I also don't spend my money at a place that has a $10 minimum. Why? Because maybe I only want to have 1 or 2 beers and then head home or go to another bar. I don't want to be "told" that I have to spend a certain amount of money or my business is no good there. That's basically what they are saying. I don't carry cash but I like to use my debit/card because it's convenient for me. I don't care that it costs the bar money. That isn't my problem. In my mind, it's called "a part of doing business". Bars need to think of it as an "investment" no different than a pool table, dart board, TV's with videos or sports on them, the sound system for playing music, video game on the bar, or dancefloor. Without these things, people might not even come to your place. Why would making people use only 1 certain form of payment that is becoming more and more obsolete and inconvenient be any different? It isn't.

    A bar owner will argue that it costs too much money to accept cards because it costs them money but it's quite the contrary and I'll break it down into a factual arguement. Don't argue with facts people.

    A typical beer may cost the bar $0.80 - $0.90 for a domestic Bud Light or Miller Lite bottle (roughly) or about that for a typical well drink if you pour only 1 ounce. It may be $1.00 to $1.20 if you pour an ounce and a half. Generally, a bar will get $3.00 to $3.50 for this beer or well drink. Maybe $4.00 for a well drink. If it's a small town it may only charge $1.75 to $2.00 for a beer and maybe $2.50 for a drink. Now, the profit in the beer would be $2.00 to $2.10 if at a $3 price and $1 to $1.10 at a $2 price. The drink would be roughly the same or maybe a little more depending on the type and/or cost of the booze for the bar. Now, add in the cost to accept a card for the payment and you reduce the profit by $0.21-$ 0.22 per purchase (I'm going on my numbers that I had when I owned a bar and it was $0.15 per item/transaction and 1.87% per transaction for Mastercard which would come out to 5 or 6 cents on a $3 beer. Visa and Discover were less so this would be the highest charge). To round things out and consider that some places may have a little higher rate, let's just say it's 25 cents per beer to use a credit card. On a $3 beer, by the time you take out a cost of $0.90 for the beer and $0.25 for the credit card fee, you're looking at a profit of $1.85. On a $2 beer it's only $0.85.

    Even if it costs you money to accept cards consider this, I may be like a lot of people that won't spend ANY money because you don't accept credit cards. In the end, it's your business that's out the $0.85 profit on a $2 beer or $1.85 profit on a $3 beer. Why say NO to profit? I can't figure out why anyone would ever turn down profit. Either way, is it really worth NOT accepting a card as a form of payment when the amount TO ACCEPT them is so small? No it really isn't. Profit is profit but when you don't get any because you're stubborn and only view this as a COST to your business INSTEAD OF an investment, it's illogical and/or impractical.

    Like it or not, I know I'm not alone and people DO like to make a payment using a card. Use common sense, do you yourself have a card and use it? More than likely you do. Or, you know of a lot of people that do. The reality is, the majority of people do NOT carry cash or if they do, it's not much. So, why limit yourself and the profit of your business to only how much cash is in someone 's pockets? Doesn't sound too smart to me in the long run. Especially considerring that to accept a card is so simple AND AFFORDABLE. As a business owner, why risk NOT making a profit over 25 cents?

    Some bar owners will say that to counter the costs of accepting cards they should raise the prices of their drinks but then it's not fair to those who carry cash because it doesn't cost anything for the people with cash. Owners argue and say why should guests pay the same amount for a beer with the added costs of accepting a card built in when they could get the same beer for 25 cents less if they had cash? Well consider this, if they run out of cash, you have to quit serving them because they don't have any money. It's a little thing called "convenience" and it goes a long way. Numbers don't lie and the fact is, people spend more when using a card whether you want to accept it or not. If you don't limit the usage to a certain amount or do other stupid things like not allow tabs after or before a certain time, you would be surprised at how much more you could make. If you haven't seen an imporvement in sales since you've added the convenience of using a card, it isn't because of the card that your business has fallen off. Taking out a credit/debit card machine is NOT going to save your business.

    Use your head.

    Again, I know you can argue all you want about how much accepting cards "costs" your business but look at it from a guest's perspective and consider how much your business could be "losing" by NOT accepting a card. I may not do business at your place BECAUSE you don't accept a card. And I may not be the only one. If you don't realize how many people don't want to come to your place or won't purchase as much because of this inconvenience, over time, NOT accepting cards could cost your business more in the long run and evntually be too costly to overcome and ultimately shut it down. Is not accepting a card worth that?

    By the way, our usage was more like 75% card sales to 25% cash and even higher on a lot of nights. Some nights were even as high as 90% to 10%.

    Sorry for the rant.

  3. #3
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    Scott,

    I agree with most of what you have to say, however I do believe there are valid reasons to have a credit card minimum (even though I am aware that such a thing is technically a violation of the merchant agreement with the cc companies.)

    Simply put, the processing fees are fairly negligible on transactions of approx. $10 or more, but they would represent a serious decrease in margins if all your sales were a couple of dollars and each one was on a card.

    I believe that for small transactions, where the total is under $10, most customers carry enough cash on them. While there are some people like yourself who do not carry any cash, I believe this is the exception. Thus, if someone is going to have one beer and leave, I would vastly prefer they pay in cash. I prefer this both due to the extra cost or processing the transaction, which is significant for very small transactions, and because processing a card slows down the server more than a cash transaction.

    The reason why many places post minimum credit card amount signs is to discourage people from using cards for these transactions. If a customer insists that he wants to pay by card for a small check, I will usually let him, but many people will just throw down cash for small transactions because of the sign.

    Having said that, I agree that it is bad for business to not accept cards. I think people avoid cards either because they mis-understand impact the processing fees, or in many cases because they want to hide income.

  4. #4
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    I see what you're saying but.....

    Rainee,
    Sorry this post got long again but I guess I'm passionate about this subject. (Who me?)

    I understand what you're saying and knew those points when I made my comments. Hey, I understand the side of the business owner so don't think I know that it does "suck" sometimes but like I said in my post, I believe it's like remodeling, replacing a table, fixing a ripped chair seat, putting new felt on a pool table (or whatever that is I forget), or fixing your neon sign outside......it's a part of doing business. I'll admit that the comparison I draw may be a little tough for some to digest but understand that without the things I mentioned in the previous thread, people might not come to your business. Without a pool table, dart board, tv's, dance music, food, drinks and etc. what have you got? I may not "always" spend a lot when I got to places but sometimes I do chose to have a night out or bring a date and then spend $40, $50 or $100. If the place is convenient and/or accomodating enough to accept my 1 or 2 drink purchase on a previous visit, I may come back. If not, there is good chance I won't. Isn't it worth the possibility of me coming back repeatedly?

    Of course the point is to discourage patrons from only having 1 or 2 drinks and yes, it does cost more for the transactions less than $10 or so. Well at least from the transaction percentage cost based on the amount of the transaction. The per swipe charge would still be the same because that doesn't change if it's $1 or $100 or $1000 (it's still 15 cents per swipe). But my points are that I don't want to be told what to do when considering doing business (buying a beer or eating food) at a bar/restaurant. If I want to have one and leave, I should be able to. If I'm a little hungry and want to have a $4 or $5 appetizer with a glass of water, I should be able to as well. And I know I can but I don't want to have to worry about carrying cash around to do so. It's inconvenient for me as a guest and you can say that I'm the exception but I've talked to many people that are right along with me so I know I'm not as much of the "exception" as you state. I know you're not saying that we aren't out there because you did say you know that we are but I'm thinking you may be thinking that there aren't as many as you think but think again cause there are. (Whew......got that?) Again, I don't care about whether it's convenient or cost efficient for the business. As a guest, this isn't my problem. I'm not looking at it from their point of view because it's not my responsibility.

    I'm trying to give a heads up to the owners of these businesses that just "assume" that everybody has or wants to spend cash. A lot of people don't and don't want to. Instead of it being we carry cash first and cards as a backup it's we carry cards first and a little cash as a backup. We don't want to have a load of cash in our pockets for theft and other reasons. A card is much easier, convenient, easier, safer, easier, and well......easier. As I said, I know that it does cost a little extra and it does eat out of the profit margin but if that's what's holding a business back, I would bet there's more to it than just paying the credit cards fees every month.

    Look, I know it's not fair for the merchants to have to deal with these charges but that wasn't why I was making the points I did. Like you said, I don't believe it's even "technically" ok to have a minimum charge for your credit/debit cards either. I can't say for certain because it didn't effect me when I had my place (because I was never going to have a minimum anyway) so I didn't remember that in the contract but I think you're right about card companies NOT allowing this sort of practice. I think if you were to mention that a place was doing this, the card company would give them a call and tell them to read their contract and stop doing this. I may be wrong.

    It reminds me of when this credit/debit card usage started becoming popular about 5 or 6 years ago and businesses were putting up signs that said "there is a 25 cent fee or $1 fee for every credit/debit card transaction". Credit card companies put a halt to this real fast because they didn't want their "potential" card customers being discouraged from using their cards (which would in turn ultimately make the card companies money by using their cards through the merchant's card machine/swiper). I'm sure there are still a few of these signs around but if you see one, you might want to mention to the business that this is actually illegal in their contract. This is one I know for sure is in there. Not because I did it but because I know others that used to and have since explained it to me that they can't because of this. Another one that is going on right now is at gas stations. I know this for a fact because I travel a lot but get gas at the same stations because I know they are cheaper than others in the area by as much as 30 cents/gallon. If you go during the day and pay with a card at the pump, it says that the receipt is "with clerk" or "reciept did not print" or something similar. The receipt printer isn't out of paper but the gas station business owner set the pumps to NOT print receipts during the day. Why? To get people to come into their store for their receipts. Why? To get people to "potentially" buy something whether it be a pop, jerky, magazine or whatever. If the receipt prints at the pump, they can pump gas, get their receipt and drive away thus leaving the gas station with no chance to make any extra money selling these items. Gas doesn't make it for gas stations so they need that extra money. I know this because when I go to these same stations at night when they are closed (but still allow you to pump gas with a credit card) they print a receipt at the pump. Plus, it's really not a secret that this has been going on but again, if the card companies found out about this, they would put a halt to this real fast.

    Like I said, I know it costs a little bit of money for the business owner to accept cards and eats a little more away when it's only for 1 or 2 drinks but the bottom line is, if people don't want to use cash or don't carry it, do you really want to not make ANYTHING just because of some stupid minimum? Profit is profit and even at only a $2 item, you can make a profit. It's the stores that have items for $0.50 (or even less for that matter) that I wonder how the card companies work with them to offset those costs. I can't imagine there can be ANY profit at all on an item that probably costs the store owner $0.20 to $0.25 if a person wants to use a card to pay. In these cases, I could understand that there would be a $0.50 minimum.

    But one other thing to remember is it's kind of like serving or bartending. Not every single night is going to be a $200 night or a $10 night for that matter. There's a saying that "you have to take the bad with the good" and I don't think you can assume that every transaction is going to be for $5 or $10 or under. Usually, it will even out for the most part.

    Rainee, you mentioned a couple things that I think you're overlooking. If you're saying that your business would suffer greatly if people only bought 1 or 2 drinks and paid with a card, I would say you would have to reconsider your business structure and/or pricing strategies. Again, I know that (percentage wise) it does cost a little more to have a small transaction but....aren't you figuring your business pricing this way in the first place? In other words, if you figured your transactions at the worst case scenerio and worked up from there, this shouldn't be an issue. Sure, "ideally", you wouldn't want ALL your transactions to be $4 and paid with a card but my point is that if you can figure your business built on this "worst case" situation, all the other higher transactions are just that much more profitable. It's just an opinion (but really it's not because I do speak from experience), but if you're gonna say "well I live in a small town of 1000 and nobody pays more than $1.50 for a beer or $2 for a drink" I would have to ask you to again pause and I think you would have to reevaluate how guest's mindsets are for your business. It's funny how people think about small towns because they think that everything should be cheaper because it's a small town but why? Food, liquor, gas, groceries, building supplies, and everything else costs the same for a business owner in a small town as it does in a big city. Heck, sometimes a small town even has to pay more because they are "off the beaten path" of the normal delivery route for the truck drivers and get an extra trip surcharge added on to their bill. Or, maybe they don't meet the required minimum for ordering every week or 2 so they have to pay extra for that too. Food and beer and even employee wages and costs are the same for bars and restaurants in small towns so why should they have to be cheaper? They shouldn't. So it's amazing that people in a small town get discouraged when they go to their local restaurant and pay $10 or $12 for a steak dinner or $5 or $6 for a lunch (with a drink mind you) but won't even bat an eye for the same exact thing in a city where the same steak dinner is $5-$10 more or a lunch is even $2-$5 more (and WITHOUT a drink usually). Why do things have to cost less in a small town? They don't because they usually cost the business owner more. Why do we see so many businesses closing in small towns? One reason would be that the costs are NOT offset enough to be profitable.

    Just becasue a guest says a beer should only cost $1.50 does NOT mean it should in order to keep your business open. And if you are charging less than you should just to keep your guests happy for everything (I'm not saying you never should but be cautious), then your place will probably close just like in small towns.

    As far as cards slowing down your servers, this is pretty much untrue to a point. Sure, if a person wants to get one beer and knows the price and pays by cash, the transaction can be faster if the server is banked by carrying cash. The server/bartender can put the order in, bring the beer, get the cash but doesn't have to worry about closing out the ticket immediately as compared to having to do the extra step of paying with a card and going back to the cash register/POS and swiping the card and waiting 8-10 seconds for the print slips and THEN walking back to the table. Yes, in that case (which aren't many), it may "slow" down your staff but only if your place is busy to begin with. But, if the server is NOT banked or doesn't have the right change and has to go to a terminal to cash them out or get change anyway, then it really doesn't save any time at all because they will have had to go to the cash drawer or card terminal in the first place. Plus, if your place is "that" busy anyway, most guests will see this and not be worried about getting change back immediately. In which case, if your staff is smart enough, they can usually multitask by waiting to run their card when they need to use the cash register/POS to put in other orders at the same time. Therefore, it really doesn't "add" any time or "slow down" your servers. It's just another excuse to not want to allow this minimum usage but that was kind of my point.

    And to catch your last point, that would probably be more true in many cases. People don't want the government to know what they bring in because it only means paying out more in taxes so yes, having a card machine would only hurt matters for those trying to hide a transaction or two and show less profit when there really is more. Same reasons bar/restaurant serving staff NEVER want someone to tip them on a credit card because then they technically "have" to report it because it's tracked as an income. But that was another thread.

  5. #5
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    Hey Scott,

    once again, I agree with the majority of your sentiment, but I think there are a couple differences that bear examination. Let us take, just by way of a example, a beer that is sold for $2 and costs the bar $1. Further, let us assume that the credit card processing fee is $0.25 per transaction, just to keep the numbers simple.

    A cash sale in this case nets $1 of marginal profit.
    A credit card sale, when the transaction is a single beer, nets only 0.75, a decrease of 25% in the profit.
    If my only transaction was selling $2 beers one at a time, this would represent a huge hit to profits and I would probably be forced to raise the price to account for the processing fees.
    That, of course, would put me at a competitive disadvantage to the places that don't take cards.

    Further, if selling $2 beers one at a time is my business model, I have to sell a LOT of them, meaning I need very fast, high-volume service. The extra 30 seconds or so to process each transaction with a card then really starts to eat into how much business I can do vs. cash.

    I want people to use cards, for all the reasons you state about convenience and spending more money, but I don't want them to use cards for very small and frequent transactions. I think the example I gave illustrates why not.

    As an additional point, I don't think there are that many customers who can not or will not use cash for these small purchases. This is specific to the location and clientele, of course, but I know that very few of my customers are ever walking around without at least $10-20 in cash on their person.

  6. #6
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    Okay I see your point but I'll raise ya one

    Rainee,
    I too will not disagree with what you have pointed out and as stated earlier, I'm not saying that everyone will do the $2 beer transaction many times in your place. I too hope for your sake from a profitability standpoint that you don't have to deal with that. But let's go back to something else you mentioned that I was trying sort of say as well.........

    You mentioned that if you have to raise your prices because of doing multiple single transactions that it would put your place at a competitive disadvantage compared to your competitors down the road however, I would like to point out.....if your only "advantage" over your competitor is nothing then what do you have to offer your guests that's better than your competitors? What I mean is, if you and your competitors both have the same policies about your card usage and/or transactions vs. cash, then what are the other things that make your place special? More to what I'm saying is, if you're providing a place that is more exciting and fun to be at or has better decor, atmosphere, hot girls and/or employees, better music, etc. etc....then the smaller transactions and costs of such that may be made in your place would be justified by having more people in your place than your competitors. In other words, you'll sell more volume wise. Therefore, you should make more than your competitors despite having to deal with these tedious 1 off transactions.

    I'm just saying that you should have more to offer than your competitors than just a no minimum card usage policy. If you go to Vegas, there are bars that charge upwards of $8 or even $10 for a bottle of Bud Light or Miller Lite. And you know that bottle doesn't cost them any more than you and you can charge $3 or $4 for the same thing. So why do people pay more when they go to Vegas? Yes, there are a number of reasons and we could all say that it's a different city with a different vibe and on and on but one of the other reasons is because some of these bars have things in them that your doesn't. Point being: they offer more.

    So my point to you is you should offer more than just this service to gain an advantage over your competitors. Yes, I agree this would cut into your profits if it was the "only" way you were selling your product but if you get the right people in your place because you have a better bar than your competitors, you should make more. People, like me (and yes we may be few but we are out here like it or not), will frequent your place more because we don't have to worry about a minimum charge. It would be better to at least sell us a beer or two wouldn't it?

    Or the alternative, not at all.

    Just sayin'.

    Look I know it's really harping on a thing that in your mind can be easily taken care of by just not allowing small transactions but I think you're forgetting about the other side. Well, maybe your not because you admit (like I do too) that you see my points and I see yours. Sure, I'm speaking for myself but not just thinking that way. I'm actually looking at a bigger picture and seeing how something as tedious as limiting me to how I spend my money in your establishment may really limit me from spending that much, if any, in the first place. Or down the road. I just don't think it's worth it to take the chance of not having business because of something like this.

    And yes, I won't disagree with your last point.

  7. #7
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    We do about 33% with the cards, even though we have a ATM as well. People love the cards. We do have a $10.00 dollar minimum, the patrons understand this and have no problems with it.

    Most of the patrons that use the card are there for awhile and spend alot more than $10.00 and enclude tips...... Works for us.

  8. #8
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    37% for the year, with a monthly range of 31%-40%.

  9. #9
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    Can I pose a weird question that's sort of on topic.

    I've been thinking about this for awhile now and I haven't heard anyone really talk about it. We're quickly becoming a cashless society - which as Scott said has it's perks. However, I've been trying to think of it on a long term global economic scale.

    Basically, Credit card companies and banks now make what? 3% or so on every single transaction that people make? They make 3% of most sales in the country. From the internet to the bar. People use their card for everything, and as you know, it's technically a violation of the merchant agreement to demand a minimum.

    But this is a cost that bars/restaurants/companies eat to offer the convienence to their customers. But eventually this cost will get factored into prices, thus trickle back down to the consumer. I feel like it's adding to inflation. It basically makes the cost of EVERYTHING go up cuz EVERYONE offers the ability to pay with debit/credit. (Even if you pay with cash, since so many customers use their card, it's gotta be factored into all sales, not just card sales).

    I'm worried about it's long term effects of this because if I raise my prices 3% now, they're making that much more on each transaction, and it's like adding fuel to the inflation fire.

    And all it's doing is making credit card companies richer and richer and average people poorer. Right? I mean - it's GOT to be having an effect on inflation.

    Thoughts?

  10. #10
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    Jack,
    You're right. Or at least I'll say I agree with you. Your logic is probably right on. Now, your comment about "Everyone" accepting cards is technically NOT true because there are still a few businesses out there that don't but they will either learn to accept them or close their doors. It IS inevitable.

    You brought up a point that most businesses don't remember when placing minimums on their purchases. Credit card companies don't allow this and if you decided to say something to the owner of said business, they might not like you but the harsh reality is, it's the truth. Credit card do this for many reasons but mainly back to the one you pointed out: it makes them richer and richer.

    It sucks but we can either accept it and adapt or not and get behind. I wish someone would be willing to take on the challenge of starting another card company that would be more reasonable but that's like asking the someone to take on the oil companies. It ain't happening.

    **Not to hack the thread but speaking of oil companies (and this sort of relates to this thread come to think of it with credit card companies) did anyone notice or hear that BP made a $23 billion dollar profit last year? I read that a month or so back. How is this possible even "after" they have a huge spill like that? Because we, as Americans, are idiots and support bloodsuckers like that. **

    There are air powered vehicles already being produced in other countries and until we allow that technology over here, we're doomed. Doomed.

  11. #11
    Join Date
    Jul 2008
    Location
    Tempe, AZ
    Posts
    90
    But it's not just the percentage they get from us, the retail shops. It's also the percentage they get all up the supply chain. Everyone's buying everything on credit and moving money electronically. They days of the "check" or cash are quickly becoming ways of the dinosaur. So if the manufacturer buys it's raw materials via electronic payment then the supplier eats that cost so it raises the cost of the raw materials by 3% say. Then the manufacturer passes that expense on to the distributor who buys the stuff from the manufacturer and they pay the fee. Then the distributor raises the cost by another 3% and then we buy it and we add our cost to the transaction and ultimately that gets to the consumer (which when we're not working, is us). And it's just like cumulative interest compounding at every step of the way and the more we raise our prices and the more our costs raise the MORE money the credit card companies make. It's insane. It's got to have an effect on inflation. Has to. And it's endless. Their 3% keeps getting bigger. I wish there was a way for them to have a flat fee per transaction, cuz it's not like their lifting heavier stacks of money or anything. Flat fee per transaction. No percentages. It's the only thing that's even remotely fair. Seriously - it's gonna bury us. And that's not even our biggest problem.

  12. #12
    Join Date
    Dec 2008
    Location
    Atlanta GA
    Posts
    35
    In response to the question about % of sales on credit/debit cards...

    Our latest venue is a nightclub type environment. For most events, our credit card sales have been in the range of 20% to 35% of total bar sales, but we're getting a newer crowd in that has more money and drinks more, and they are consistently at 50/50.

    We encourage a minimum $10, and also encourage patrons to run a tab, but a lot of times they would rather run their $13 or $18 for a few drinks multiple times during the night, rather than run a tab.

    We have an ATM in the lobby and make money off of it, but there is no way we could do without taking credit cards.

    Stacey
    Find YOUR Center .. at Spring4th Center, Atlanta's Alternative Event Venue. www.spring4th.com

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