|The math for the effect on profits of card transaction cost is pretty interesting. I hope I can present it here in a clear and valuable way.
This baseline example is using these inputs…
If your insured just pays the down payment with her card, here is what happens…
|Change to Profit = $20 profit plus $3 pay fee minus $5.74 = $17.26 profit.
Change to Profit at Various Payment Numbers
If you write 12%* less premium because of the fee and all else is equal…
The use of Service Fees is the only way to accept card payments and legally avoid this impact on profits. To discuss this further please call me – Duke Williams – at 800-768-0907.
Contact us at 800-768-0907 to discuss accepting credit cards and benefits for your company.