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.