You can read part one of this post HERE.
Wow! I received a lot of feedback on the first post (if you receive this by email or in facebook - go to the blog to read comments). Thanks for all the input. Very interesting discussion.
Philosophically, I have no problem with allowing the use of credit cards. We don't drop our website because people misuse the Internet. We probably will even allow people to put sugar in their coffee. Just because things are misused doesn't mean that we will keep everyone from using those tools. I would rather see those who live in debt learn to use wisdom. If they cut up their credit cards - good for them. They can use their debit cards or carry their envelope system. I think that is great!
The second issue that I want to mention in this blog is the practical issue.
A very common comment was to only allow debit cards to be used. Philosophically, I am fine with that. But that creates a practical problem - bank surcharges. Our cafe/bookstore team has done some research. If someone uses a credit card - it will cost us .22 cents per purchase PLUS 1.67%. BUT if someone uses their debit card - it it a flat fee of .72 center per purchase.
To illustrate it - think about this. If we sell a cup of coffee for $1.00. Here is the breakdown:
- Cost of the coffee to us (23 cents)
- Cost for use of Visa (22 cents)
- That leaves 55 cents that goes to the cafe
BUT - if someone uses their debit card - this is the breakdown:
- Cost of the coffee to us (23 cents)
- Cost of debit transaction (72 cents)
- That leave 5 cents that goes to the cafe
And this does not add cost of the cup, stirrer, cream, sugar, lid, equipment, etc. It also doesn't include the loss that will occur by giving free coffee coupons in our guest packets.
The cafe and bookstore won't be there to make money, but we can't have them lose money either. Any profit that is made will be put right back into the cafe and bookstore.
So - here is the question (for those of you who want us to take credit/debit cards): Are you willing to a bottle of water to cost $1.50 instead of $1.00? Are you willing to pay $1.50 instead of $1.00 for the cup of coffee? Are you willing to have everyone pay 40 or 50 cents more per item?
Based on this knowledge of fees - NOW WHAT IS YOUR FEEDBACK? Does it change your opinion? What do you think we ought to do? Cash only? Cash and debit only? All three?