Rewarding Cash-paying Customers
It cannot be denied that credit card processing fees are a necessary evil in the world of economy but just how much can consumers and merchants take? More and more merchants are getting irritated by the exorbitant costs of card fees that they have taken initiatives to fight back by awarding cash-paying customers with attractive discounts.

Take one Diane Chung for example. The Boston Globe reported that this enterprising lass has started to wage a silent war against MasterCard and Visa to protest against burgeoning credit card processing fees. Diane crafted a discount plan called “Sunday Maki Madness” at her Japanese restaurant in Brookline whereby cash-paying customers can enjoy scrumptious maki rolls for up to 55% off. Customers who use plastic are excluded from enjoying this discount. She initially wanted to get back at these credit card giants for imposing huge fees each time a customer swipes his or her credit card but it seems that her plan is working like a charm. Customers are raving about her food and how affordable it is to enjoy good Japanese fare. Diane added that she does not like “giving away money” to huge credit card companies and instead preferred to give back to her customers to retain loyalty.

Revealing a merchant’s many grouses
Diane’s actions may have brought her good business but we think that not all merchants have taken the same proactive steps. Others took the hard way out by refusing to accept credit cards.

“But what can we do?” Lamented one merchant. “These swipe fees have gotten so costly, even in the economic downturn. Not only do card issuers do not want to negotiate, they also raised the fees, much to our horror!”

Business owners are also complaining about the complexity of the entire credit card professing fee system. The statements were deemed too difficult to comprehend while fluctuating charges caused many a headache amongst merchants. Casey Sewall, who runs a chain of electronic stores specializing in HDTVs, says that approximately 70% of his customers use plastic whenever they make purchases. This forces him to pay $75,000 annually based on the $4 million spent by him customers. Casey has tried to talk to Visa and MasterCard but to no avail. To counter skyrocketing fees, he too has followed Diane’s initiatives by offering attractive cash rebates for customers who pay in cash.

Cash vs credit card (fees)
While some customers happily pay cash when they see that they can take advantage of the discounts and rebates offered by many merchants, experts say that a lot of merchants are still reluctant to completely do away with credit card processing. Consumers love their plastic and it’s here to stay. Refusing to accept credit cards may be detrimental to your business, so perhaps it’s time to see what merchants can do to cope with the escalating fees.

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