Business owners - how much are you charged for debit card fees?

There was a time where they weren’t allowed to pass on the fee and it was a violation of their terms with Visa, etc.

Then like magic…everyone started doing it and it’s accepted.

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say their processors charge same fees for debit or credit.

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I’ve used two different companies and both charged less for debit card processing than credit card. Like 1% vs 3% different.

I’ve never charged a convenience fee for debit cards. It’s not a big deal.

And how much do you pay in taxes from cleaned money?

I wonder if they put an exemption on government processing of Debit cards.

If I recall using a Visa Debit card to pay taxes is a flat 5 dollar fee in Lafourche parish while the fees for using a credit card were like 3-5%.

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Imagine if a business was forced to survive with -3% profit.

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Well a 3% change is a shite ton when a lot of industries are barely running at 10-20%.

And yeah debit has a smaller charge than credit and credit card companies started charging the business for storing the cards too on top of the rates.

So that’s why people are “passing” on the charge. You can get around most laws surrounding it by giving a cash discount instead.

It's illegal in Louisiana to charge a transaction fee for using a debit card as of today.

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It's illegal in Louisiana to charge a transaction fee for using a debit card as of today.

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Yes, and I’ve seen a stream of small business owners complain

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Imagine if a business was forced to survive with -3% profit.

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Imagine the costs and risk of cash. So if you collect cash, someone now has to count and balance a cash register drawer. Then someone has to bring the money to bank to deposit said cash and sometimes come back with coins and smaller bills for change. All that adds additional labor cost into accepting cash. Then you also have the factor of someone stealing the money or giving out too much change.

It almost makes too much sense to eliminate cash transactions and eat the fee or add the cost into your business model.

it's moronic to use a debit card.

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I'm sorry but this just seems like a joke. Not any of those things you mention take more than a couple of minutes in a day.

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I base this on my experience as a manager at a McDonalds over 20 years ago. We would volume about 4 thousand dollars a day in cash. So morning manager would have to count the previous night’s deposit. Recount the register tills and place them in the registers. Periodically, you would then have to count and skim the drawers to make sure if you were robbed they were not getting a register full of cash. Then when the person’s shift at the register was done you would have to balance the till again accounting for the drops you took out. Then the morning manager would then have to count a morning deposit and then bring both deposits to the bank for them count the deposits and get smaller bills and get rolled coins for change. Some banks charge for this service. Cycle repeats in the afternoon for a midday deposit and at closing for a late night deposit.

If I had to put a man hour count on this it could be close to 6-8 hours over two to three people. Some places like Taco Bell in my area use courier services and time locked safes where cash can be inserted and withdrawn like an ATM, but this is not free service. Some banks even charge if you make too many cash deposits.