Kalvin00 said:
:laughing
Don't get mad at me....be mad at the guy who is angry that he has to pay 5cents off my transaction back to the company, which is something he AGREED to.
You really have no idea what you are talking about do you.
Visa alone is .12 cpt (cents per transaction) PLUS 2% of the total purchase.
So, lets calculate this out......at your purchase of what, say $2.00, that makes a credit card transaction cost of $.14. Subtract sales tax (CA is what 8%, so that is $.16), add the cost of the product (not sure what you were buying but margin on a regular soda is about 25%) say 1.04.
So, if we take
cogs 1.04
sell 1.38
at 25% margin $.34 is gross profit
So we have 34 cents to work with. Now, subtract the CC fee of 14 cents. Mr. Retailer now has a gross profit of 20 cents. Now try subtracting all his costs, rent, insurance, employee pay (even if the owner runs it himself he has to have some money to live on). When you factor all his expenses in he is losing money on your little $2.00 purchase.
I am guessing that this person has calculated out that on an average credit card purchase his break even is $5.00.
You can bitch and whine all you want but your anger should be directed at the credit card companies, not at the retailer.
But hey, go ahead and get this guy in trouble (if you can), the result will be you won't have anywhere to buy a drink out there. Maybe the will open up a Wal-Mart on that corner for you.:hand