Sunday, February 21, 2021

Nothing in Life is Free - Beware of Hidden Fees!


Let me begin with a great big disclaimer.  I am not a financial wizard.  Too often I learn by my mistakes.  Everything contained here-in should be read with a bit of skepticism on your part and, if you see the error of my ways, please correct me.  Finally, what I am writing here captures only a single moment in time.  Everything is subject to change.

Now that I have that out of my system, I am going to express my opinion on fees that B&B Owners pay.  None of these are actually hidden but, if you don't do your research, you may not be aware of where your hard earned money is going.  Ignorance can be bliss but knowledge is power.  

As a child (many, many years ago) I remember my best friend, Robin, getting a new bike.  It was so beautiful and I wanted one just like it!  I told my father that Robin's dad didn't even have to pay for it - he simply gave them piece of plastic, signed a paper and the bike was hers.  My father explained to me that, even though Robin's dad did not have to pay today, he would have to pay sooner or later and there was danger paying tomorrow for your hamburger today.  I did not get a new bike that summer and, as I recall, Robin did not get to keep her bike for long. 

Today, very few people use cash and plastic has become the norm.  There are many advantages and pitfalls for both the user and the receiver of credit transactions.  Today I am writing as the recipient of plastic money though I could give you quite an earful about using these devil chips for purchases.

We primarily process our credit card transactions through Square and Quickbooks.  Each charges a flat fee per transaction plus a percentage of the charged amount.  Each allows for swiping the customer credit card through a card reader, manually entering the credit card information on their app or having the customer pay their invoice directly.  Below is a summation of the charges that can be incurred.









Charged Amount

$ per transaction

% fee per Transaction

Fee For   $100 Charge

Fee For.    $150 Charge

Fee For    $200 Charge

Square

Swipe Card

$0.10

2.6%

$2.70

$4.00

$5.30


Manual Entry

$0.15

3.5%

$3.65

$5.40

$7.15


Invoice

$0.30

2.9%

$3.20

$4.65

$6.10


Stored History

$0.15

3.5%

$3.65

$5.40

$7.15








QuickBooks

Swipe Card

$0.25

2.4%

$2.65

$3.85

$5.05


Manual Entry

$0.25

3.4%

$3.65

$5.35

$7.05


Invoice

$0.25

2.9%

$3.15

$4.60

$6.05

Additionally, these companies may charge a monthly or annual fee to use their services.  Services can include invoicing, book keeping, customer records, etc.  We use both service companies for different reasons but try to maximize our income by reducing our fees when collecting payments.  Its very important to understand where your money is being spent so we encourage you to take a close look at the fees you are paying, after all, a penny saved is a penny earned!

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