eCommerce Credit Card Processing Fees

 

Current Costs of Processing eCommerce Transactions

  • Two components of each transaction fee
    • $.50 flat fee
    • 2.3% (VISA,MC)  or 2.99% (AMEX) of total transaction
  • Average transaction cost is $.85, but we only collect $.50

Some Constraints

  • 2013 opinion from SAILS attorney says we cannot pass processing fees on to public libraries.
     
  • Visa guidelines say fee must be a fixed amount and can not be based on the amount of the transaction.

How Other Networks Handle Fees

  • Minuteman, MVLC, NOBLE and CW MARS deduct fees from checks issued to libraries.  
  • OCLN charges a $.50 convenience fee and deducts the remainder from checks issued to libraries. 

Recommendation from Board

  • Increase processing fee to $.85 to fully cover cost of transaction.
    • This change would require an addendum to eCommerce agreement.
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