Small Money Is Good Money - Losing a Transaction Over a 1.5% Fee
We all know small business is doing it tough and bank transaction fees for tap and pay are not helping. However, as a person who does not carry cash (who does anymore?) I was amazed at one store owners response for a recent attempt to buy a greeting card.
I admit it only was a $1 card in a $2 style store, but on my attempt to pay with my Apple Watch I was told the store had a $3 minimum spend on tap and pays.
Now let’s do the math. Let’s say the store generates a .60c profit from the sale, less a 1.5% transaction fee, the owner is still left with .58c profit.
Additionally the store gets a happy customer, as finding a store that stocks greeting cards anymore is like trying to find a Blockbuster store.
Sadly the small business lost a sale over 1.5 cents. Now, I’ve always been told small money is good money, am I missing something here?
Maybe because on walks with my dad when I was very young, I used to watch him cross a street if he saw a pay phone and check the coin return repository to see if anyone left coins behind.
Micro-transactions make the world go round and it’s time small business embrace a cashless society.
