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Old 06-28-2005, 09:21 PM  
Ron Bennett
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Join Date: Oct 2003
Posts: 1,653
Small businesses have a tough time as it is with covering their merchant fees ...

Many businesses have a minimum not because credit cards are a hassle to process or anything, but rather because many processors charge a flat fee of around $0.50 or so for each transaction *in addition* to the percentage of the transaction. Small businesses have little to no leverage when negotiating with a credit card processor unlike big businesses, such as Wal-Mart, Target, etc.

It's the flat-rate part that can really hurt margins and thus many businesses, in particular small ones, requiring a minimum purchase of around $10 to $20.

Ron
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