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A few weeks ago I introduced Sorriso Smart Pay and the success that one of our clients has achieved. Today I’d like to speak a little about credit card payments.

As a packaged food manufacturer or distributor you need to keep your prices in line with the expectations of retail outlets. And retail outlets want to pay in a way that’s most convenient to them, credit cards, debit cards, single-use cards, or bank accounts. The cost of credit card processing presents you with a dilemma, do you offer credit cards and increase prices so you can cover the expenses, and then offer a discount for bank payments, or do you just eat it? Will your prices be non-competitive? What about your margins?

Credit card expenses can be high. When a customer uses a credit card, you pay two sets of fees, a non-negotiable base fee that pays the card issuer and the card network, and then fees to the payment provider that gives you access to the network. Base fees average anywhere from 1.5% to 3.5% depending on the card used and your business type; you have no control over them. Payment providers charge a much smaller fee, often based on total expected volume. Accept cards and that mom and pop retailer will use their travel card to pay their $10,000 bill; and at 3.5% that would be $350!

With Sorriso Smart Pay, customers can use credit cards at no charge to you. As long as you also offer payment by debit card or bank ACH, 48 states allow you to recover your credit card fees through direct charges to the customer, up to 4% of the customer payment (2% for customers in Colorado).

When your customer’s billing or delivery address is in one of the 48 states (Connecticut and Massachusetts excepted), Sorriso Smart Pay will calculate, display, and charge the legally compliant surcharge. You keep your price competitive; your customer sees the fee before paying, they can switch to a different payment method if it’s too much.

Convenience for all!

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