If you are running your own business there are many profit margin ideas you need to take into consideration. One of these being charging more for individuals who buy a product with credit cards over those who buy with cash. Although credit cards are easier to use, the credit card companies can charge you a large percentage of the sale, in turn taking money out of your pocket, and if you are running a razor-thin profit margin, this can be extremely devastating.
Program your cash register so there is a button that adds an extra percentage amount onto the end of the sale.
Determine how much extra you want to charge each individual who is paying with a credit card. You may want to charge the person extra for the card they are using (Visa users being charged 1 percent extra while American Express users are charged 5 percent extra), or you may just want to compromise and set the extra charge in the middle somewhere, perhaps around 2.5 percent.
Ring up the order on your register. Come up with the final sale and ask the individual how they are paying. If it is with credit card, press the credit card charge button to add the extra percentage, then total the order up. It is a good idea to have a sign somewhere in the building that states you charge less for cash purchases. This may give people incentive for purchasing the items with cash instead of credit.
Look into your credit card rates to see how much each company is charging you. Typically, cards such as Visa and MasterCard only charge around 1 percent of the purchase price, while American Express can charge well over 5 percent of the purchase price.
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