Quote:
Originally Posted by Vermilion Villager
Several drinking establishments in Northern Minnesota now charge if you use a credit card. Usually 2-3%. I questioned it and the owner said "last year I paid $50,000 in credit card fees". To which I responded if $50,000 is 2% of the total charges your customers paid… That means you took in $2.5 million in gross revenue. He shut up real quick!
|
There is a lot of difference between gross revenue and net profit. All kinds of businesses fail because there is no net profit after business expenses are taken from the gross revenue. Credit card fees are just one of those expenses.