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User Info Amazon Makes Money Exploiting Honest Merchants; entered at 2017-11-24 23:04:51
Tickerguy
Posts: 150674
Registered: 2007-06-26
The discount rate has nothing to do with what a credit card company charges its customers. It is simply a charge for handling the money from one place to another, and other than the unrecoverable chargeback risk and interbank exchange rate (which is measured in BASIS POINTS, not percents) it's pure extortion.

Everyone has to make a profit to remain in business, but remember that chargebacks are hella-profitable for the processor. They get to hit you with a fee (usually in the range of $25 EACH) AND they have direct access to your bank account, so their risk of non-recovery is nearly zero. Of course if you have no money that's a different issue, but we weren't cash-starved by any means, and our bank knew it. That was the other negotiation point I hammered on -- we only paid when we LOST, and since we had excellent records and could prove it, despite having five-figures of customers billed every month we lost about one or two contests a YEAR -- all from actual stolen cards. Other than that we NEVER lost.

It's all a management thing. If you let yourself get pushed around, well, you'll get raped. Don't.

Last modified: 2017-11-24 23:05:53 by tickerguy

2017-11-24 23:04:51