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<br><strong>I hope you're REALLY sure about that "going rate". . . also, aren't there "other" fees attached to doing business accepting credit cards? Like the "lease" fee for use of the swipe device? Seems like I remember a whole plethora of bank charges at the end of the month. I felt like my pocket was being picked by my bank on a regular basis.</strong><BR><strong></strong> <BR><strong>Don't know if they actually can charge a surcharge. . . . I wanted to, but was told I couldn't. However, it might be o.k. to give a discount. But that could backfire on you also. After all, if you give a 2.9% discount you run the risk of being branded as a "cheapskate". Sometimes you can't win.</strong><BR> <BR><strong>Don't want you to paint a very simplistic view of doing business that might cast doubt without cause.</strong><BR><strong></strong> <BR><strong>Ellen A. Roskovich</strong><BR> <BR> <BR><div><hr id="stopSpelling">Date: Thu, 6 Oct 2011 22:12:47 -0700<br>From: jborden@datawedge.com<br>To: vision2020@moscow.com<br>Subject: [Vision2020] Sangria and Transparency<br><br>
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</style><div class="ecxWordSection1"><p class="ecxMsoNormal">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).</p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">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.</p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">I forget the *<b>exact</b>* phrasing, but the note said something along the lines of:</p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">“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!”</p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">Again… it’s not word-for-word, but that’s the gist of the message.</p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">So… interesting notes, since I happen to know a thing or twelve about the credit card industry. </p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">Sangria has actually raised their prices, but managed to jump on the hate-wagons at large still blame larger “corporate America” in the process.</p><p class="ecxMsoNormal"> </p><p style="text-indent: -0.25in;" class="ecxMsoListParagraph"><span>1)<span style='font: 7pt/normal "Times New Roman"; font-size-adjust: none; font-stretch: normal;'> </span></span>The current “going rate” (cost) to a merchant such as Sangria for a swiped Visa/MC credit card is ~1.5%.</p><p style="text-indent: -0.25in; margin-left: 1in;" class="ecxMsoListParagraph"><span>a.<span style='font: 7pt/normal "Times New Roman"; font-size-adjust: none; font-stretch: normal;'> </span></span>American Express charges 3.5% for their merchant fees, but Sangria doesn’t accept Amex (and also why many merchants don’t accept Amex). </p><p style="text-indent: -0.25in;" class="ecxMsoListParagraph"><span>2)<span style='font: 7pt/normal "Times New Roman"; font-size-adjust: none; font-stretch: normal;'> </span></span>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.</p><p style="text-indent: -0.25in;" class="ecxMsoListParagraph"><span>3)<span style='font: 7pt/normal "Times New Roman"; font-size-adjust: none; font-stretch: normal;'> </span></span>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. </p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">Bottom line: on every single transaction, Sangria is now making a little more money.</p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">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. </p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">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. </p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">But not both.</p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal"> </p><p class="ecxMsoNormal">Jay</p></div><br>=======================================================
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