Dropping merchant fees?

[SSadmiral]

Since the credit card co's emv will no longer be eating the costs for fraudulent charges as of Oct 1st does that mean our transaction fees will reflect their reduced operating expenses ?

 

[rph9168]

I wouldn't count on it.

 

[Earl Weiss]

Since the credit card co's emv will no longer be eating the costs for fraudulent charges as of Oct 1st does that mean our transaction fees will reflect their reduced operating expenses ?

Your premise is untenable based upon the BS they have been giving which goes something like "After 10/1 the responsibility for fraudulent Charges shifts to the merchant"

They already do all they can to shift it. At my gas station I run over 3000 transactions a month. Almost once a month I get a kickback where a fraudulent transaction is claimed. If I provide a signed slip I win, BUT pay at the pump has no signed slips. So, I was supposed to prevail if I show the printout indicating the card was used as opposed to a number being manually entered. Then I get a response that card issuer still contest and I have to go to arbitration if I continue my objection and I agree to pay a $500 arbitration fee if I lose. The whole thing is BS since all the card issuers need to do is require a PIN, This is already required for debit so the technology is already in place. Additional note: What idiot decided entering a Billing Zip code was some layer of security? probably 90% of cardholders have the bill go to their home and that info is probably in the same wallet as the credit card that got stolen or easy to find on an internet search.

 

[SSadmiral]

That's what I'm guessing too... They were essentially insuring each transaction for the merchant before and we were paying for it in fees. Now no insurance and we're still paying for the it. If we get hacked etc... We will be paying for any damages

How is that not BS?

 

[slash007]

Your premise is untenable based upon the BS they have been giving which goes something like "After 10/1 the responsibility for fraudulent Charges shifts to the merchant"

They already do all they can to shift it. At my gas station I run over 3000 transactions a month. Almost once a month I get a kickback where a fraudulent transaction is claimed. If I provide a signed slip I win, BUT pay at the pump has no signed slips. So, I was supposed to prevail if I show the printout indicating the card was used as opposed to a number being manually entered. Then I get a response that card issuer still contest and I have to go to arbitration if I continue my objection and I agree to pay a $500 arbitration fee if I lose. The whole thing is BS since all the card issuers need to do is require a PIN, This is already required for debit so the technology is already in place. Additional note: What idiot decided entering a Billing Zip code was some layer of security? probably 90% of cardholders have the bill go to their home and that info is probably in the same wallet as the credit card that got stolen or easy to find on an internet search.

I have come across the same issue a few times. I win, then it is reversed and I have to go to arbitration if I want to continue fighting it. Like I am going to risk losing $500.

 

[SSadmiral]

Depending on the cost of the new chip readers I may just go back to all cash and say screw it. Save 6% on all trans fees and no hacking bs

 

[mjwalsh]

Depending on the cost of the new chip readers I may just go back to all cash and say screw it. Save 6% on all trans fees and no hacking bs

SSadmiral & others,

That kind of mindset would help open the door to more straight forward & efficient processing & tracking of cash where higher denomination coins should be included.

I personally think with more of us with that specific attitude there will be a healthier tension put on whatever merchant fees & liability shifting is done out there. Earl's suggestion of pin on all transactions would tend to require pin pads (waterproof?) in our self service bays. For the more sheltered payment equipment of IBAs & pay for gas at pump etc. it would be a lesser problem than in the more wet environment of a self service bay with both doors closing during the winter etc. in our northern climate.

My main help discouraged me & continues to discourage me from putting in the over 60 card swipes we would need at our facility ... based on him & his wife's experience with credit card companies in the hotel industry. They also know that any lost money could make it so our ability to have better wages & more additional needed help could be put at risk.

mike walsh www.kingkoin.com

 

[Randy]

I don’t think you’re going to see any of the fee’s that the credit card companies charge go down anytime soon, maybe right after pigs learn how to fly.

The last time I checked on the Chip-pin reader there were only 2 companies that make a Chip-pin reader system that will work with car wash pulse technology. One company is in France and the other is in Australia, both are very expensive and both aren’t very water resistant. So hang on boys it could get interesting. When I find out more I'll post it.

 

[SSadmiral]

Wonder who has done the math on the cost of bill acceptor maintenance, time spent counting money and wrapping, cost of currency counter, coin acceptor, throw in security lighting cameras etc. what's cheaper paying the man @ call it 5% (emv) or taking hard currency

Also time spent emptying vaults and theft etc... Bagging quarters.

I love the convenience of cc but what's the break point?

 

[Earl Weiss]

.......a Chip-pin reader system that will work with car wash pulse technology. One company is in France and the other is in Australia, both are very expensive and both aren’t very water resistant. So hang on boys it could get interesting. When I find out more I'll post it.

Perhaps why the gas stations got two more years to comply. I was quoted $3500.00 per each 2 sided dispenser to upgrade at this time. I decided to wait.

 

[washnvac]

All this kind of reminds me of the Y2K scare. People spent lots of money being scared into buying products, because the World was going to end when the clock stuck January 1, 2000. I spent $0, and had no issues. That is my same plan with this subject.

 

[MEP001]

Same thing happened when they announced the gold dollar coin. Everyone was in a big panic because they thought they'd have to alter their changer and swap all their acceptors, and no real changes have happened.

 

[I.B. Washincars]

Same thing happened when they announced the gold dollar coin. Everyone was in a big panic because they thought they'd have to alter their changer and swap all their acceptors, and no real changes have happened.

Yeah, but it could take off any day

 

[Randy]

I don’t think that the Mag stripe card will be going away any time soon so we are taking a wait and see attitude.

I'm still waiting for the dollar coin to take off.

 

[JustClean]

Chip-pin reader there were only 2 companies that make a Chip-pin reader system that will work with car wash pulse technology. One company is in France and the other is in Australia, both are very expensive and both aren’t very water resistant. So hang on boys it could get interesting. When I find out more I'll post it.

Hi Randy,
what's the name of the French one?
There is another company called Nayax http://www.nayax.com/en/
They are in the process....but I still haven't seen a 100% working carwash system from them yet.

 

[mrfixit]

I just ran across nayax earlier today. It looks good promising.. I was trying to see if I could get the latest swiper with contactless built in but its not ready.. And likely will be years..

Imo Credit card processors are making a killing off nearly every dollar that is spent in America.

These readers don't have to cost this much.. I mean really the crypto pay is a case, a reader, a board, and a radio.. Its less than $100 to make I'm sure..

The thing that gets me is the cost of the equipment.. I mean if you figure how much carwash time you have to sell before you break even, its a little disheartening, but dollar and coin acceptors are just as much in $300 range.

I have to replace a cryptopay reader today its 350.00.. There went my profit again... Lol

 

[Earl Weiss]

The reader just went bad? How old was it. I think I have had one out of the 8 go bad in about 3 years which is better than a lot of other stuff and they may have given me a no charge replacement.

As far as cost goes, the comparison of cost to make it and selling price is like saying the customer pays $2.00 for 4 minutes of time at the SS but the cost of Utilities and supplies to the wash is only 35 cents.

I really have no way of knowing if the CCs increase the average ticket. I do know that last month was not a great wash month and the CC recpts were about $2500.00. No counting, No going to the bank.

 

[mrfixit]

Yes it got water damage due to the way it was installed they said, it was almost a year old... They're not water proof, you could say water resistant.

Yes that's true, everyones got to make thier money.. some make a lot more than others.. I know I'm complaining 'how expensive everything is today'.. This just happened this week.. I'm sure you know how it is sometimes.. I saw the lost revenue at an immediate glance... But you have to accept credit in today's world I think, for sure.. Its so much easier as you said..

I just don't think the processing technology should be this costly, its been around for how long now... I can get a whole computer for that much is all I'm saying.. And I'm sorry it was off topic somewhat talking equipment.

But I hope processing fees go down, 1% sounds nice to me... Its not like they process by hand its a computer that does it all. Mail people physically process it for 30 cents. Merchants let you make a 10.00 or less transaction that their computers take care of in cyberspace... I guess it's a good business to be in. Lol

 

[JustClean]

FYI In Australia vending machines with chip, swipe & wave readers are around 2% plus the $300 for the reader. Depending wether it has its own modem with SIM card they also charge another $20 per month per reader. But there is still no decent aftermarket carwash solution available...

 

[SSadmiral]

All this kind of reminds me of the Y2K scare. People spent lots of money being scared into buying products, because the World was going to end when the clock stuck January 1, 2000. I spent $0, and had no issues. That is my same plan with this subject.

Hilarious !

Hopefully the general public rejects the pin and business as usual. I've noticed a lot of ads on Facebook from visa touting its awesomeness and every comment below it is a negative one so there is hope.