Actually vendors are prohibited from surcharging customers who use credit cards by their agreement to be allowed to accept credit cards. Surcharging the customers can cause a vendor to lose his "agreement" and he would not be allowed to accept ccards.
---- "Donald S. Roberts" <donald@hummellawfirm.com> wrote:
=============
> From: Thorn, David J
> I don't think it has to do with ability but with cost. 2%-3% is taken
> from every credit card purchase for the credit card company. Think
> about the typical crew of 12 (# in Crew) X $600.00 (average cost of
> trek) X 30 (Number of crews each day) = $216,000 per day.
> 2.5% of that
> is $5,400.00 per day.
>
> Because there is no sales advantage to taking credit cards
> (Philmont is
> always full) the Ranch would loose up to that much each day in revenue
> (no small change).
>
Oh come now. That is rather distorted. Your numbers assume no
payments at all prior to showing up.
At a minimum, a crew would have paid 7*$600 ahead of time,
leaving only 5*$600 or only 3000 for a minimal crew.
Of course, treks aren't quite up to $600 per person just yet.
Also, this also assumes every crew will be full, while many crews
have fewer than 12.
PHilmont is not always full, it is only the 12 day treks that
fill up generally. Even then, they usually have openings for
additional crews after about August 4 or so. In 2005, we had an
August 9 trek and only 6 crews kicked off that day with us.
Not to mention not every crew will underpay either.
Besides, there is nothing to stop Philmont from surcharging
credit card payments to recover that amount. So there really
is no justification for not accepting credit cards.
Regards
Don Roberts
Fullerton, CA
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Received on Thu Dec 28 22:46:46 2006
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