cramerjohn004
117 posts
Oct 11, 2022
9:45 AM
|
In today's economy every cent a merchant can save counts, however you might be surprised how many merchants are being robbed every month, simply because they are unaware of what fees they are paying.
Here are just 5 ways merchants are being robbed by issuers and acquirers.
1. Rewards Cards: It is surprising how many merchants are unaware that they are being charged a higher rate every time a rewards card is swiped in their establishment. Often times rewards card are swiped at a 3%-4% rate, an increase of as much as 2 to 3 points above their initial processing rate.
2. Rewards/Bonuses: Merchants might be surprised to learn that they not the issuing banks pays for their customers rewards and bonuses on special cards. That's right, how to become a merchant iso merchants are paying for free flights, cruises, give backs and a host of other programs created by issuing banks to attract both personal and business card holders. These cards aren't just created with at drop of the hat, actually issuing banks spend considerable amounts of time creating specialty cards. The process involves a team made up of individuals across various departments, from sales and marketing, legal, underwriting, finance and card development. These cards are carefully designed and targeted towards specific individuals and businesses. They are well planned out and every possible way for the issuing bank to profit and reduce direct cost has been explored.
|
