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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal>In a recent “round-table” discussion with a few of my peers on a variety of topics, the opinion of *<b>more corporate transparency</b>* emerged over and over again as what’s wrong with America. (Warning: wine was flowing).<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>So… my wife and I went out to a nice dinner last night at Sangria where we saw a note paper-clipped in their menu.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>I forget the *<b>exact</b>* phrasing, but the note said something along the lines of:<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>“As of September 10<sup>th</sup>, the menu prices listed will reflect a cash price, and a 2.9% surcharge will be added for any order that is paid for by credit card. [Something something about fees]. Please help us fight the evil corporations that want to take money out of Moscow by paying in cash!”<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Again… it’s not word-for-word, but that’s the gist of the message.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>So… interesting notes, since I happen to know a thing or twelve about the credit card industry. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Sangria has actually raised their prices, but managed to jump on the hate-wagons at large still blame larger “corporate America” in the process.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='mso-list:Ignore'>1)<span style='font:7.0pt "Times New Roman"'> </span></span><![endif]>The current “going rate” (cost) to a merchant such as Sangria for a swiped Visa/MC credit card is ~1.5%.<o:p></o:p></p><p class=MsoListParagraph style='margin-left:1.0in;text-indent:-.25in;mso-list:l0 level2 lfo1'><![if !supportLists]><span style='mso-list:Ignore'>a.<span style='font:7.0pt "Times New Roman"'> </span></span><![endif]>American Express charges 3.5% for their merchant fees, but Sangria doesn’t accept Amex (and also why many merchants don’t accept Amex). <o:p></o:p></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='mso-list:Ignore'>2)<span style='font:7.0pt "Times New Roman"'> </span></span><![endif]>Since Sangria is only charged ~1.5%, but their surcharge is 2.9%, they are now making an additional 1.4% on every single credit card swipe taken at the restaurant.<o:p></o:p></p><p class=MsoListParagraph style='text-indent:-.25in;mso-list:l0 level1 lfo1'><![if !supportLists]><span style='mso-list:Ignore'>3)<span style='font:7.0pt "Times New Roman"'> </span></span><![endif]>In addition, every transaction that Sangria can push to cash via their little note is now saving (making) an additional 1.5% on every single transaction, since it’s a merchant cost they no longer have to pay. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Bottom line: on every single transaction, Sangria is now making a little more money.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>The part that bothers me isn’t that Sangria is making more money… (as I’ve said before, I’m a “for profit” individual)… what bothers me is that they choose to make a larger enterprise the whipping boy for their own profit. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>In my opinion… they should either drop the dig in their menu insert about helping them stick it to the larger banks… *<b>or*</b> they should make their surcharge only equal to their merchant fees. <o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>But not both.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Jay<o:p></o:p></p></div></body></html>