Mechanical Music Digest  Archives
You Are Not Logged In Login/Get New Account
Please Log In. Accounts are free!
Logged In users are granted additional features including a more current version of the Archives and a simplified process for submitting articles.
Home Archives Calendar Gallery Store Links Info
MMD > Archives > March 2001 > 2001.03.11 > 01Prev  Next


Credit Card Regulations
By Ken Vinen

John Tuttle recently posted about U.S. Federal Regulations in effect
that control credit card charges [010309 MMDigest].  There are
different regulations in different countries, but the same, very
easy solution applies.

Here in the frozen North, known now as Canada (until Quebec gets it
changed), it is the credit card companies who make the rules!  If you
are in a business that accepts payment by credit card, it is written in
your contract that you agree NOT to pass on any service charge to the
customer.

The result: you adjust all your prices to reflect this additional cost
of doing business, hence the person enjoying the credit is the one to
pay for it!  To keep things fair, you offer a discount for cash.  There
is no regulation against this.

The net result is that the plastic card customer is paying for the
costs of credit; the cash customer is not subsidizing the other guy's
credit, and you as the merchant are getting your required amount no
matter what way the sale is made.  Book keeping is much the same, no
matter if you are adding on a percentage service charge for plastic,
or taking off a discount for cash.  Human nature makes most folks
choose the discount!

David and Goliath -- the banks vs. the little people!

Best to all - Ken Vinen


(Message sent Sun 11 Mar 2001, 05:39:21 GMT, from time zone GMT-0500.)

Key Words in Subject:  Card, Credit, Regulations

Home    Archives    Calendar    Gallery    Store    Links    Info   


Enter text below to search the MMD Website with Google



CONTACT FORM: Click HERE to write to the editor, or to post a message about Mechanical Musical Instruments to the MMD

Unless otherwise noted, all opinions are those of the individual authors and may not represent those of the editors. Compilation copyright 1995-2024 by Jody Kravitz.

Please read our Republication Policy before copying information from or creating links to this web site.

Click HERE to contact the webmaster regarding problems with the website.

Please support publication of the MMD by donating online

Please Support Publication of the MMD with your Generous Donation

Pay via PayPal

No PayPal account required

                                     
Translate This Page