Now there is a way to Eliminate Your Credit Card Processing Fees.
As a result of a legal settlement between a group of merchants in the U.S. and VISA & MasterCard, merchants are now allowed to pass the credit card processing fees to their customers.
Merchants finally have a choice.
This is GREAT news for small business owners, who accept credit cards (who doesn't these days), and have to carry the burden of high traditional credit card processing fees.
Orumfy is one the few innovators in the field of credit card processing that offers Merchant Surcharge and Cash Discount Programs.
Law Changes That Created These Programs
After a long lengthy battle in court the merchants won an explosive class-action lawsuit, they filed against VISA & MasterCard, accusing them off not only charging excessive credit card processing fees but also not allowing the merchants to pass that cost to their customers or offering them less expensive options.
Now merchants are allowed to choose to pass, the cost of credit card processing fees, onto the credit card users, by switching either to the Credit Surcharge Program or Cash Discount Program (in those 10 states that still don't allow the Credit Surcharge Program).
Orumfy stays up to date, with all legal changes and keeps our customers informed and educated on the continuously changing laws.
There are four parties involved with every credit card transaction:
There are four parties involved with every credit card transaction:
- receiving the payment
- the bank that the merchant uses to provide processing services
- the bank that issued the card to the customer
Credit Surcharge Program
Credit Surcharge Program/Cash/Debit Discount Program
What is a Credit Surcharge Program
Instead of paying yourself 2.5%-3.99% and higher on every sale with conventional credit card processing fees, merchants now have an option to pass on the cost to the users of credit cards, by charging them a "Surcharge" of 3.99% and only pay for the equipment and software for the Surcharge Compliant Terminal, which is usually about 10% of what they are currently paying for credit card processing fees. You save up to 90%!
Orumfy and its partners have developed software, and have integrated it with our Surcharge Compliant Terminals, to completely make that process headache free for our clients. Surcharge Compliant Terminal does everything for you. All you do is SAVE!
What is a Cash/Debit Discount Program
Orumfy offers Cash/Debit discount program.
Cash/Debit Discount Program is a very similar concept to the Credit Surcharge Program, except here the merchant provides his clients with a 3.99% discount for cash or debit card payments, rather than surcharging them.
One of the benefits Orumfy provides with the Cash Discount Program is that it is allowed even in those 10 States that have banned Credit Surcharge Program.
Also, some businesses would rather advertise discounts than notifying customers of surcharges, for ease of marketing and to ensure customer satisfaction.
Having said that, Orumfy would like to note, that our research indicates that surcharging clients 3.99% surcharge rarely results in any loss of clients, as some customers don't really care, and others understand.
However, the savings from not paying anymore for credit card processing fees, are such, that businesses can afford to reinvest in themselves, marketing, advertising, establishing better business practices and as an end result generate new clients, and more revenue.
Most customers are already accustomed to paying more for the convenience of using their credit cards. Gas Stations, Municipalities, Education facilities and even ATMs have been surcharging for years.
These are prime examples of goods and services sold at various businesses, going up in price without merchants having to pay for credit card processing fees.
Orumfy will help you keep the money and use it to expand your business and improve your bottom line!
Advantages of Surcharge or Cash Discount Credit Card Processing with Orumfy
Between the high credit card processing fees, not being able to understand where your hard earned money is going, and the constant change of regulations, technology and fraud, the headache that is called "credit card processing" is real, and is not going away.
These are just a few reasons why businesses are turning to Merchant Surcharge or Cash Discount Programs.
The obvious benefit of surcharging is that the burden of expense for processing will no longer fall on you.
By passing the credit card processing fees to your customers, you’ll reduce your expenses while still allowing customers their choice of payment type.
For businesses with thin margins, any cost reduction can be a big help.
Savings that come from switching to Surcharge or Cash Discount Credit Card Processing, far outweigh the potential lost business revenue, from customers who would rather go somewhere else than pay miniscule credit card processing fees (especially given the option to pay with a debit card or cash, without it).
Again, a 3.99% fee on an individual transaction generally has a very small impact to the consumer, but for you, the merchant, your savings can mean the difference between struggling or not.
Let's take for example a restaurant business.
By switching to surcharge credit card processing you save close to 90% of your credit card processing fees. Let's say you generate about $100,000 monthly volume in credit card sales, so you would pay somewhere from $2,500 - $3,000 monthly in conventional credit card processing fees (let's meet in the middle and call it $2,750), so your yearly processing cost is about $33,000.
90% of $33,000 is almost $30,000. Since we know the average profitable restaurant's margins are about 10%, you would need to sell extra $300,000 worth of service to match that.
We all know, you won't lose $300,000 worth of sales over the year, due to the Credit Card Surcharge of 3.99% per sale. Not even close. Especially, since your customers can just pay with a Debit Card or cash, and not pay any fee.
Instead you can take those saving, and reinvest it into your business.
Hire more staff to improve quality of service. Spend more on marketing and advertising.
Purchase equipment that will generate extra revenue.
Invest in growth or take a well deserved vacation. YOUR MONEY. YOUR CHOICE.
We at Orumfy believe you know how to make your hard earned money work for you better than credit card processors.
States that only allow Cash Discount Program
- New York
Cash Discount Programs been around for decades in Europe and is used across the US in gas stations, where a cash discount is offered at the pump, for over 15 years.
Some people argue that it’s a matter of semantics…. And in March of 2017 the Supreme Court agreed with them, by unanimously voting that the 10 states that allow Cash Discount Program but prohibit the Merchant Surcharge Program are in violation of the First Amendment.
In order to correctly implement a Cash Discount program, all you need to do, is simply post signage (that Orumfy will provide) that states that all transactions now carry a 3.99% customer service charge.
customer pricing notice
A 4% customer service charge is applied to all store sales
cash/ debit card discount
As an incentive for customers, we now provide a discount to pay with cash or in-store gift card by giving a 4% immediate discount on the service charge
pay by cash and save
If you explain that the Cash Discount program is a way for you to keep providing quality goods and services without increasing your overall prices, customer research shows that the majority of customers understand that and are accepting of it.
How does it work
How does it workThe process is easy as 1-2-3
You can contact Orumfy, via any of the available channels: phone, email, chat, Facebook, twitter, and one of our specialists would be happy to assist you.