Alternative to merchant fees on debit cards?

[MisterMusty]

Hi,

I'm looking into merchant fees on debit card transactions for a cafe and the lowest I can find is 22p per payment. But in a cafe your average spend per customer is around £3.25 so if you pay 22p per debit card that's essentially 8% of your post VAT revenue. That's enormous! Seems like easy money for the merchant account providers!

How does everyone else deal with this?

 

[David Griffiths]

Seems like easy money for the merchant account providers!

It's a flat rate charge. It costs them the same to process £3.25 as £3250

Most people set a minimum level of expenditure for card payments

 

[deniser]

Don't you have to add on the fees for the payment gateway as well eg.20p per transaction?

Best to have a £10 minimum spend limit for using a card of any kind although a credit card will work out a lot cheaper for smaller amounts.

 

[Parrot Hosting]

We always used to enforce CC only under £5 because the fees were 25p for debit cards whereas by CC it would be only 8 pence.