Feature in Focus – The Benefits of Card Fees!
Nobody likes to the hear the words ‘card fees’ spoken out loud because as consumers we aren’t used to paying them. The truth of matter is someone is paying a fee for every transaction that is made by card, there isn’t a business out there that can avoid this. This now falls at the hands of the business who is selling their product of service.
Are card fees really that bad though? The simple answer is no!! Where a card transaction is made using an IT system, there is a huge benefit in reduced admin as the payment can be automatically reconciled and applied. The payments reach you quickly, and you do not have to go to the bank or check your statement. You can also forget about inputting transactions from the bank statement, this all happens automatically while you focus on other tasks. The card fee transaction cost is therefore minuscule to the time saved, not to mention the benefit to the consumer for ease of payment in today’s modern age.
That said, you need to be careful to seek a competitive deal and ensure you are not overcharged, and it’s worth looking into how you can control and monitor the costs.
If you are taking card payments, you need a payment gateway and merchant account which require PCI compliance. It’s important these systems integrate with the booking/ordering system you use. As part of the magicbooking package we would provide the payment gateway and merchant account, meaning we deal with all the compliance elements, thus removing the strain from you!
Some booking/ordering systems use card fees as a way to pay for their system. This allows them to keep the cost of the system down but the overall cost may be higher than if you get a more sensible system price with lower card fee.
Alternative payment solutions exist such as paypal, where the standard rate is 3.4% plus 20p per transaction (this reduces depending on volume).
magicbooking negotiates the best deals possible for their customers by using the collective card processing volumes to drive the price down for everyone. We then simplify these fees for our clients by offering a simple rate of 1.8% without any additional costs per transactions or different rates for different card types (ie credit or debit card), allowing our clients to manage their income better.
Many payment gateways also have additional costs for various items such a monthly fixed rate or a fee for storing the cards in their system, which can cost as much as 9p per card. magicbooking doesn’t pass on any monthly fee using their payment gateway and our system will regularly clear this gateway of all stored cards ensuring there is no additional costs being incurred.
Although card fees could be seen as a necessary evil, they should be looked at as a huge benefit and time saving element which should outweigh the small percentage costs. By improving your payment options to your customers, you will be freeing up your time to spend on other areas of the business.