Infact, only 21 percent of the respondents said they use cash compared to 39 percent 5 years ago.
It seems that the biggest shift for this is millennials using more and more the plastic in their pocket.
Why is this killing your bottom line you ask? “I already planned for it in my calculations”. The problem is that you know what you are supposed to be charged based on the contract that you have with your processor. What you are actually getting is completely different.
How would you know? YOU WOULDN’T! That is where a company like ours comes into play. Your credit card processor sets up the qualifying fees based on your agreement and then lets it ride. You get your statement every month and look at it and can not make heads or tails of all the line items.
Look, your processor may have said your discount rate is 2.2% and when you do the math its more like 2.78%. On a million dollars in processing that is $5,800.00 dollars you overpaid.
They did not mean to overcharge, but just like going to the grocery store to buy an item and the price on the shelf says 4.99 and the register rings it up at 6.99, when you look at your bill at home you realize something is wrong.
You as a business owner can keep telling yourself that this is “just how it is” or let a company like ours audit your bills for you at no charge and tell you what you have. If there are mistakes, we can show you how to fix them without changing your processor.
If you wish to read an article that has more detail about credit card usage and how cash is not as KING as it used to be. Check out this article - Fewer Shoppers Using Cash in the CPA Practice Advisor magazine.
If you would like to know how we can help. Give me a call for a 15 minute phone conversation.
Call Ray Alkalai 612-217-0157