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northernms

Senior Member I
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Reply with quote  #1 
Hey sales reps!

Does your company charge your customers to pay via credit card? Is it a percentage? How much?

Thanks curious

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broadliner

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Senior Member III
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Posts: 745
Reply with quote  #2 
US Foods used to pick up the credit card service charge. The percentage varied by card (Amex, Visa, MasterCard or Discover). TMs will be charged for the fee under the new USF compensation plan. It will be deducted from their checks. Just another way that TMs will get screwed.
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doingthisfortoolong

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Posts: 16
Reply with quote  #3 
PFG does, 2.5% of the sale
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northernms

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Reply with quote  #4 
Have you had any customers pit you against other distributors with the fee?
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doingthisfortoolong

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Reply with quote  #5 
Quote:
Originally Posted by northernms
Have you had any customers pit you against other distributors with the fee?
. Doesn’t happen. The customer doesn’t pay the fee. It comes out of my GP dollars on the order.
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Salamiking

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Posts: 7
Reply with quote  #6 
Small independent: 2%
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Retiredfoodpro

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Posts: 68
Reply with quote  #7 
The fee can be buried in the "sales cost" of the item sold. If you ask the right person in finance, they can artificially adjust the profile of the customer pricing schedule to absorb the fee so the customer never sees it.  You'll have a ~2.5% increase in sale cost on every item but it's a smoke screen to tell the customer "we don't charge processing fees". 
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ISellLettuce

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Posts: 95
Reply with quote  #8 
Make no mistake about it, no matter how you spin it to the customer, credit card fees are something that the distributor incurs (much like the operator does) and its affects the profitability of the invoice/order/customer.

There's really only two (and a half) ways to address is:

1) Charge the fee as a line item surcharge.
2) Build it into the cost of goods.
2.5) Absorb the charge through margin, though that is really the same as #2.


Having customers pit on distributor against the other over this is ignorant at best, downright stupid at worst. I'll "not charge" the customer every time if its a point of contention, but rest assured it impacts margin and will have to offset accordingly. 

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laser

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Posts: 141
Reply with quote  #9 
This goes back about 5 years ago, but we were  charged 1.25% directly against commission dollars, because that was basically what the company was being charged on credit card transactions. The only honest way to handle it is to address it as a separate cost and do whatever the company decides to do directly(charge the DSR,the customer, or absorb it).
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laser
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