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| Credit Cards are a double-edged sword-- By accepting them, the
clients feel more secure, they earn miles and statistically the
probability of a sale is increased. On the flip-side, processing
cards costs us 3.2% of gross sales. |
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3.2% of a year's worth of rentals could be a lot of money, so it is
important to discuss. |
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| Here are the realities: |
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The actual cost is 3.2%; I
only charge the owners 2.5% because that is what Penny does. Over 90% of my contracts pay by
card these days. In our on-line world-- it is a cost of business. I
recently added a secure payment portal to the site. I hope this
results in more bookings to offset the probable increased usage of
cards. |
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My base line cost of card processing is 2.5%-- but the "corporate",
"rewards", and "miles" (Disney) cards the clients use add another
1-2% onto the discount fee charged--frustrating. |
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However--As an owner-- you need to understand that (IF) by accepting cards
gets you just ONE additional rental a year-- the "profit" from that
rental more than covers all the rental card fees you MIGHT have had
to pay for the full year. If the incremental "profit" of a rental week is
roughly 60-70% of the rental rate-- just one 60% "profit" covers 24
charges of 2.5%-- and that assumes all 24 of the other rentals used
cards. It is actually very much worth it to accept cards. It just
irks all of us to do it though. |
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