[lug] Credit - was: [Letting folks pay from the web.]

[Nate Duehr]

On 2/3/2010 10:22 AM, George Sexton wrote:
>> I concur.  I own a small web hosting business and it was fantastic to
>> be
>> able to charge customers' credit cards every month for their services.
>> But a few years ago the merchant processing fees started to rise,
>> eventually costing me about 50% of every transaction (we're talking
>> $10/month services).  So I had to stop accepting credit cards and go to
>> an annual payment by check, which many customers didn't like at all.
>>
>>      
> For our two least expensive packages, we require prepayment for one year.
> For our more expensive products, we offer payment quarter by quarter. This
> keeps our minimum ticket in the $100 range.
>    

So George, I "get" Jeff's "fix" for his problem.  He stopped accepting 
cards.

How does making your ticket larger help the problem?

I missed what you pay the card company, but it looked to me like a 
percentage of the transaction.

So, mathematically, 5% of $5 has the same effect to your bottom line as 
5% of $100.

What am I missing in the math?

Nate