Brian K. Lingard
Dear Oluskin & List:
My office machine dealer told me his bank adds a 10% fee to all foreign
remittances they make in addition to the foreign exchange conversion! This
Seems most merchants use third-party card processing firms like Monaris and
Paymentus to process their card sales. You forgot to mention the processors
have a higher discount for processing charges billed to cards with Air
Miles, Sky Miles. Cash Back or other rewards features!
Seems few retailers have card transactions handled by their VISA, Master
Charge bank or American Express now. Possibly because of the lower discount
by third-party processors.
Brian K. Lingard
From: main@TechTalk.groups.io <main@TechTalk.groups.io> On Behalf of
Olusegun -- Victory Associates LTD, Inc.
Sent: Sunday, September 1, 2019 11:26 PM
Subject: Re: [TechTalk] sending the full amount of money through pay pal
Evan, I think you're mixing apples and oranges! We're dealing with
international business transactions, not local. I own and operate a
business and my company is charged x-percent plus about $0.15 transaction
Here's an example: I sell you some test rips at $6.75 per box of 50; you
pay my company via PayPal; PayPal charges my company 2.9% off of the dollar
amount, plus another $0.30 transaction fee. In the end, my company doesn't
In the case cited above, my company will receive $6.35 because PayPal will
subtract $0.40 to cover discount rate charges and transaction fee.
Here come the likes of SquareCardR, Striper, Go Payments R , and SumUpR!
These ones charge a flat discount rate ranging from 2.65%-2.75% so that my
company will get back more pennies than it would have from PayPal or another
Merchant Account Service Provider. Of course, Master and Visa cards hate
their guts, so do Merchant Account Service Providers because their ability
to MILK MERCHANTS is somewhat curtailed.
The Consumer Finance Protection Act allows businesses to charge these rates
back to the customer. These can either be charged separately or
incorporated into the total cost of a given merchandise. American Express,
Master and Visa cards hate this too. Some airlines will add a surcharge of
extra $40-$50 cause you're paying with a credit card; you get around this by
using the particular airline's card. However, there's generally an annual
fee of about $90-$95 in most cases.
International business where currency exchange is involved is vastly
different from the scenarios discussed herein. No matter what you do or how
you choose to do it, there will always be a CURRENCY EXCHANGE transaction
fee. Just go to a major bank and try purchasing Euros or Pound Sterling
with CASH-IN-HAND; your socks will be knocked off big time.
If you use your credit/debit card for making purchases outside its
local/national authority, you will be charged a set transaction fee to cover
the cost of foreign currency exchange.
Ok, I can't think of any better way to explain this rather complex subject.
However, if you're in business for yourself and you have to juggle any of
these, it ought to become a lot more clearer. Just always read the fine
print cause failure to do so always gets one in some unsought-for trouble!