Few consumers think about the hidden costs of cards while making a purchase, yet unfortunately the perceived convenience linked to a swipe (or a tap) also comes at a cost: a cost that is incurred by the merchant but inevitably passed on to the consumer. Indeed, small retailers are often obliged to raise prices, generally against their will, to balance the costs. In turn, this makes them less competitive compared to larger shops who are big enough to easily absorb card fees.
To respond to this issue, VizyPay – a credit card processing company catering to small business owners – proposes a Money in physical form such as banknotes and coins. More Discount Program – a quick and easy solution to calculate merchant service fees per purchased product. By simply encouraging consumers to pay cash, shop owners can offer up to a 4% discount at the check-out line for those ready to pull out their bills. You can even test the product directly on their website by simply writing your business’ approximate monthly earnings: the program will immediately estimate the savings you could make should all of your customers pay with cash.
Debit, but especially credit card service fees are quite a challenge for small businesses across the globe. In the UK, the British Retail Consortium asked the government to step in and better regulate A transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More processing fees, which are costing £1 billion a year to shop owners – a 39% increase since 2017.
As Boston Globe journalist Neil Swidley wrote in his article “Put away that credit card. You need to use cash more”, “We should all take this moment to remind ourselves of the massive amount of control we have ceded to the big financial institutions — not to mention nefarious hackers — in The Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More for minor convenience on our march to credit card servitude.” Convenience, unfortunately, does come at a cost.