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09-25-2020, 12:45 PM #7
- Join Date
- Aug 2016
- Posts
- 486
Thanks you to everyone that has responded on this thread or sent me a PM! Keep them coming!
Thus far I have received fee charges anywhere from 3% to 10% of approval amounts.
That made me think about when will the fees be paid....???
The fees are tied to an approval that's once issued, isn't actually usable until the credit card is received. So do you all float collecting on the fees until the cards are actually received, and at that point charge each card the percentage owed based on that particular cards limit?
To me, this would seem to be the least evasive, customer friendly way of going about collecting on the fees that are owed.
For example, you facilitate $50,000 of approvals total across 3 cards and you charge a 5% fee. So you are owed a total of $2500 in fees.
Card 1 has an approval of $16,000. You send invoice 1 to merchant for 5% of the $16K = $800.
Card 2 has an approval of $25,000. You send invoice 2 to merchant for 5% of the $25K = $1250.
Card 3 has an approval of $9,000. You send invoice 3 to merchant for 5% of the $9k = $450.
Card 1 is delivered to the merchant in 3 days.
Card 2 is delivered to the merchant in 7 days.
Card 3 is delivered to the merchant in 10 days.
So would you collect the fees as follows???
When card 1 comes in (3 days), Merchant pays invoice 1 with card 1.
When card 2 comes in (7 days), Merchant pays invoice 2 with card 2.
When card 3 comes in (10 days), Merchant pays invoice 3 with card 3.
That method seems so nice and neat! The merchant that is trying to get money, is not having to come out of any money on the front end to facilitate this deal..
Everyone wins!
Now is this how you all go about collecting on fees? If not what is the method?Last edited by Winning; 09-25-2020 at 12:57 PM.
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