Credit Card and Banking Costs

Anthony Toepfer here. I have a small well established store in Keene,
NH. We sell our own designs as well as jewelry from many other
suppliers. I have a question about Etienne’s breakdown of expenses.
He has figured bank credit card expenses as 1 percent. My expenses
would be closer to 2% for Visa, MC, Disc and closer to 4% for Amex.
Are there merchant service providers out there that have rates that
are significantly lower than what I am paying? If so, would anyone
be willing to share their names with me.


I believe that Etienne meant that the cost of credit card sales was
1% of his total gross. Please remember that people still pay with
checks and cash. I don’t believe he meant that the card companies
were only charging 1%. 2% is about right for jewelers who move a
reasonable amount of high end and mid range merchandise.

Daniel R. Spirer, GG
Spirer Somes Jewelers
1794 Massachusetts Ave
Cambridge, MA 02140

Hi Anthony, I figured an average with some sales on the card and some
not. But yes there are companies that charge as little as 1.5% for MC
and VISA and about 3% for AMEX. We work with a company through our
membership in the American Gem Society. I think that Jewelers of
America has a good deal also.

Good Luck,
Etienne Perret
Designing Colored Diamond Jewels
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20 Main St
Camden, Maine
USA 04843