(PRWEB) August 14, 2014
It has occurred to those in the acquiring industry that every time a customer uses their rewards card they are able to receive a direct benefit from their card issuer in regard to some sort of incentive, this can be in the form of cash back, rewards, travel, massage or other incentives to drive customer spending. As a retail or e-commerce merchant those charges are absorbed through monthly fees paid to the card companies so they can turn around and give the customer what they want through the hard work and dedication of the merchant. The majority of merchants are not aware why some of these card fees are so high, so here is the truth.
The merchant pays for the rewards.
In order for the issuing card banks to issue their rewards and all their cash incentives to their customers they must pay that money out their customers. The issuing card banks do not want to pay out those fees, so the only solution is to charge more for those cards to the merchants who accept them, thus creating a way for the card companies to give the customers what they want; so the customers spends more and the card companies never have to pay out a dime, since the merchant is the one responsible to pay for those expenses.
As a business owner margins are already tight to begin with and if the merchant has to pay an extra 1.5% because Customer A wants a purse bought with a reward card, those extra fees being paid by the merchant is the incentive that the issuing card bank promised that consumer. In the end, the issuing card bank is still making fees on the customer through interest that they are charging and then they give the customer the "rewards" that they offer them through the merchant fees they collect from the merchant. So essentially they are making money from both sides and there is zero down side for card companies.
For the executives at Visa and Master Card, that is what they like to call a "win-win."
MLS Hotel has designed a program that will allow all merchants whether big or small to collect and receive rewards based on every single transaction that they accept throughout their cash register or terminal. These rewards include everything from vacations, playoff tickets, plane tickets, watches, jewelry and many more items. This program is putting the power of the "rewards" back into the merchants pocketbook and officially launches September 1st.
Remember being a merchant is not for charity, this is a business. Lets make sure that businesses continues to thrive, but puts the merchant in a position to reap the "rewards" and cash incentive bonuses of success.
For more informant on this program and how to enroll businesses should contact MLS Hotel with all the information provided to the right of the article or visit, http://www.mlshotel.com