Quote:
Originally Posted by Yoda
Simply because I wanted to use my credit card when I couldn't use Pay Pal and didn't want to write any kind of check. It seemed reasonable to me, and if Heritage didn't want to eat the 3% charged by Visa then that is just a business decision that is hardly customer friendly. I believe they are big enough with real deep pockets to afford it. Sometimes business models need to be tweaked.
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The reason that most retail businesses or restaurants eat the credit card fees is because they are generally operating with gross margins at 50% or better. An auction house is working with a gross margin as low as 20%, so “eating” 3 pts represents a significant (15%) profit hit. Big or small, it wouldn’t be fiscally prudent to take that hit off the top.