|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 Security & Delivery 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.