Adding a credit card charge

[Angi]

HI There,

We have to pay a credit card charge for any purchases made by Credit Card (currently charged at 2%) do you know if Actinic can automatically add this to the invoice and does it inform the user of this?

Many thanks

Angi

[los_design]

HI There,

We have to pay a credit card charge for any purchases made by Credit Card (currently charged at 2%) do you know if Actinic can automatically add this to the invoice and does it inform the user of this?

Many thanks

Angi

Would it not be more prudent to factor it into your retail prices?

Just a thought...

[Angi]

Well its to sell vouchers in £10, £20, £50 & £100 so my client who im designing
the site for does not want to include the 2% in the cost of them.

Do you have any other advice please?

[Paul Bulpit]

(short answer) I haven't tried this myself so it's only a suggestion.

In View | Discounts & Surcharges Settings you can set discounts and surcharges for specific products and by payment method (which is under 'Restrictions') - perhaps you can do something with this. A surcharge is simply a negative discount.

-o0o-

(long answer - this is something I have some knowledge of)

However as Daren says, it would be much much better to absorb the credit card costs* - otherwise you will only upset people (and sell less as a result).

What you are saying is 'Buy a £10 Gift Voucher it will cost you £10.20' - I don't think they do that in M&S! (and they give you a free card & envelope as well, so in fact their costs are even higher).

£20.00 = £20.40
£50.00 = £51.00
£100 = £102.00

Ask your client to think this through - surely a Gift Voucher is meant to ENCOURAGE sales, not charge extra for the priviledge. After all, you are asking the purchaser of the gift to advertise your website to another person (who should spend more than the value of the voucher in order to redeem it) - you shouldn't penalise them for doing you a favour.

-o0o-

NOTES (sorry to get complicated but it doesn't add up)

* You say 2%*** on credit cards, that's 20p on £10 - ask your client his cost of debit** cards. That's likely to be between 25p & 50p per transaction- i.e. 2½ - 5% on a £10 voucher (though obviously a lesser percentage on larger denominations).

** It is my understanding (from years ago - I don't need to know anymore as I stopped surcharging & built it into pricing) that it is legitimate to charge a surcharge on credit card transactions (a percentage) provided it is advertised at the point of sale. It is NOT legit, under any circumstances, to surcharge a debit card transaction (a fixed fee) - yet in your example, at £10, this will cost you more.

(So the exercise is pointless?

We are analysing our payment transactions and find that we receive more Debit Cards than Credit Cards.

Is this an internet trend? Are more paying from their bank direct than using c/cards?

If order values tend to be higher, this is good - If your sales are low value, this is bad)




*** The bank charge of 2% (if that's what you're getting - must be a busy site) is on the total transaction value. Assuming we're talking retail (& the ten quid for example) includes VAT then we are saying (moving on to a separate subject):

Gross Sale £10 incurs bank charge of 20p (- i.e. 2% - as quoted)

now do the math, as they say.

Gross Sale £10 = £8.51 net of tax.

20p bank charge = 0.20 / 8.51 * 100 = 2.35% of sales income.

So it's not 2% at all - it's 2.35%
(extrapolate as necessary according to your rates)

-oOo-

I watch costs. If any member requires further thoughts fro me on the subject

[TraceyHand]

Is this an internet trend? Are more paying from their bank direct than using c/cards?

I've noticed this too.
Looking back on card transactions of late...there seems to be a shift from credit card to debit card. I certainly take a lot more debit card transactions now than credit card. Something which surprised me when I looked into it.

[george]

Shopping online then paying by credit card? Hardly a surprise is it?


You'd be better to offer discounts to the people paying by the `cheaper to process` methods than adding to the price (when paying by cc) that the customer has agreed to pay.

[leehack]

Credit cards on the whole are maxed out, that is why you are seeing the shift.

[TraceyHand]

speaking from personal experience, Lee?

[leehack]

LOL, no not at all, i've so far managed to steer well clear from them, but i'm sure she has her eyes on them. Everytime we go out for an hour, it costs me £150. I'm becoming a recluse to combat it.

[TraceyHand]

Everytime we go out for an hour, it costs me £150.

Easily done in her condition LOL

I'm becoming a recluse to combat it.

ahhh...that explains a lot....

[leehack]

I have a very simple existence currently, I'm either:

• Working in the nursery
• Working in the office
• Out buying nursery stuff
• Sleeping

[TraceyHand]

Sleeping

you sleep?


I'm shocked!

[leehack]

LOl of course i sleep, i just do it for less than most and at different times.

[Angi]

Thank you for all your replies but I have just remembered another hurdle, the payment service provider I am using is Protx so is this something I need to sort out with them?

Many thanks in advance

Angi

[los_design]

Thank you for all your replies but I have just remembered another hurdle, the payment service provider I am using is Protx so is this something I need to sort out with them?

Many thanks in advance

Angi

Hi Angi

Nope, your sales price has absolutely nothing to do with Protx, it is the store owners decision. Protx is merely a gateway to process orders received and send the cash to the acquiring banks.

Regards