It’s not cheap for small store owners to accept credit cards. Not only do they have to pay set up charges, buy or rent equipment, get a dedicated phone line or other connection for the equipment and often pay monthly fees, they also have significant per transaction fees.
On average a small retail store has to pay somewhere around 20 cents per transaction plus 2% of the transaction amount whenever you pay by credit card. That means when you pay for your meal at the local deli, $0.30 of that $5 goes towards credit card processing fees.
30 cents may not seem like much but it adds up. You also have to consider the full $5 of the sale isn’t a profit to the merchant, in most cases closer to $1 of it is. That’s a 30% decrease in income. So be polite and use cash for your small purchases.
On average a small retail store has to pay somewhere around 20 cents per transaction plus 2% of the transaction amount whenever you pay by credit card. That means when you pay for your meal at the local deli, $0.30 of that $5 goes towards credit card processing fees.
30 cents may not seem like much but it adds up. You also have to consider the full $5 of the sale isn’t a profit to the merchant, in most cases closer to $1 of it is. That’s a 30% decrease in income. So be polite and use cash for your small purchases.
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