by dirwiz on 9/16/15, 2:38 AM with 22 comments
by jeffmould on 9/16/15, 3:08 AM
1. Development effort - there are many off-the-shelf carts available. And, even easier, is a processor like Stripe that offers the ability to simply create a "Buy Now" button that is placed on your page and they handle the rest. Shoot, even PayPal is easy and will allow you to accept credit cards.
2. Security - you don't have to store numbers. Stripe, Braintree, etc... all handle this for you. In fact, the credit card number and financial details should never even touch your server. In fact most processors handle this for you.
3. Service fees - true, debit and ACH can be done a lot cheaper.
Finally, you bring up development effort as an issue, yet the second to last paragraph touts a processor like Dwolla. Dwolla is a great service and I have helped clients in the past get hooked up with them. But there is a development effort there as well, so you sort of contradict yourself.
No offense, by the title of the article I thought you were going to give me some never heard before advice on why accepting credit cards is bad for business. Instead you simply told me that transaction fees are high and your company is no longer accepting credit cards.
by freehunter on 9/16/15, 3:12 AM
Also:
> It baffles us why a larger sale should cost more than a smaller sale. The storage and transfer of an digit or two on a computer is negligible.
Represents a massive misunderstanding of what a credit card company charges for. A larger payment represents a larger risk if the payment is never received or is received fraudulently. It's one thing if $5 is fraud. It's another if $5000 is fraud and needs to be returned. You're not paying someone to move bits around, you're paying someone to take the risk that someone could issue a chargeback and demand their money returned.
by lemevi on 9/16/15, 2:52 AM
Haven't they heard of Stripe? It's really easy to use Stripe. They should just use that. I'm not sure they looked at all the available solutions out there for processing payments.
by mkozlows on 9/16/15, 3:09 AM
Okay, that's nice, but... not sure there's really a larger takeaway.
by larrysalibra on 9/16/15, 3:16 AM
It's silly to pretend checks, wire transfers, and dwolla don't have costs. You're asking the customer to pay a month or two earlier than they would credit cards - many businesses will then ask for net 30 terms (or 60 or 90!). If you're providing terms, you have to run an accounts receivable department and make sure customers pay on time. You're also now in the position of tying up your own working capital providing vendor financing. With credit cards, these things are included in the price.
by vtlynch on 9/16/15, 3:14 AM
They can use systems like Authorize.net and the fees are very reasonable. There are LOTS of reasons that credit card companies charge you fees based off the transaction: fraud protection costs scale, as do the "cashback bonuses" that they give to customers as an incentive to use credit (can you imagine how many billions are spent on credit that people cant afford on debit??), etc, etc.
The most obvious reason, as they say, is because they mainly work with B2B customers who prefer to pay another way. They just wanted an opportunity to rag on credit cards.
by vtlynch on 9/16/15, 3:16 AM
They wrote:
"Can't recommend AMEX highly enough. Did the online application and got the card fedex'ed to me the next morning. Never an issue and points tie to Amazon directly. Best decision I've ever made."
And they wonder why there are fees...
by wyattjoh on 9/16/15, 3:00 AM
by elwell on 9/16/15, 3:05 AM