We are IT Retailers and our margins are now actually down to 2.5% to 3%. For all Credit card transactions in my case ICICI they deduct 2.248% from our Payment and give the balance payment to us. How do people expect us to absorb the transaction fee when we are as it is working on such miserable margins. Hence we have to pass on the Fee to the Customer
RE:Transaction Fee
by Smart Fool on Nov 23, 2007 02:13 PM Permalink
One more thing most retailers like cash transaction is to avoid paying tax. If it is paid through CC or Cheque, they cannot avoid tax. So they scare away the consumer by saying that they will charge 2% extra is paid by CC so that indirectly they force the customer to pay by cash and inturn save on tax.
RE:Transaction Fee
by Jignesh Gunvantrai Gandhi on Nov 23, 2007 11:04 AM Permalink
If bank is charging you for the credit card transactions than why you do not negotiate with the bank that you will keep the credit card swiping machine only if the bank will provide it for free. Why you pass it on to the customer? Else you take the payment from the customer in cash/cheque. No customer will like add extra 2.5% on purchasing any costly item as 2.5% of Rs. 30000/- is Rs. 600. Why pay that extra?
