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Apology in advance if this has been addressed already, but WTF is up with USAT and credit card fees?
"There is a $2.75 credit card processing fee for online registration for a Bronze Membership. There is a $5.50 fee for a Silver Membership and an $11 fee for a Gold Membership."
Can someone tell me, one why one is $2.75 and the other is $11? Is one that much more work, Come on? Why do they charge them at all? If I mail it then I get a discount... isn't this all backwards? I just don't get it. Who still charges credit card processing fees? We did just roll over to 2005 right? This is weak.
The credit card processing companies charge a fee, called the 'discount rate', on all transactions. For MC/Visa, it's around 2.5%. For Discover, it's 4%, and I think AmEx used to be 6%, but it may have come down to 4%. So everything you buy with a credit card has this additional fee built in. In fact, since it is a cost of doing business, most companies charge across the board, such that people who pay cash are subsidizing those who pay credit.
You will note that they are charging an amount that is several times this percentage. A certain amount of that may be attributed to other fees they are charged for online transaction processing, but frankly, they're making money on the fee as well. Think about it: Active.com's entire business is based on charging you a processing fee to register for a race. And they usually charge less than usat does.
Another interesting thing to note is that the fees charged are usually higher percentage-wise on less expensive races than more expensive races, meaning that they are making greater profit off the lower-priced transactions.
As long as races sell out, and you have no other option, you will continue to be gouged by your triathlon organizers(who, as I believe Dan pointed out once, already have their registration costs built into the race fee). But even at Walmart, the cost of transaction processing is built into the price you pay.
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They have to pay fees to credit card companies, fair enough and that is just business, but $11 on a $200 purchase is a bit rich. Besides, like I said, who lays out credit card fees like a menu? If you want to charge for those fees then charge everyone an extra X$ for a membership and it will balance out. I just find listing out fees for credit cards a bit silly and their fees a bit steep.
I wonder what it costs for them to sort through the mail and handle all the checks, for that I get a $3 discount so they must have someone paying them to have that fun?
My good friend does credit card marketing for a bank. He says if you want a USAT card, you're much better off to put your USAT sticker over your (old) Wachovia card....
He doesn't work with the USAT card, but mentioned its all a big scam. I complain about all the junk mail and his response is "you'll get one sooner or later".
I could check to see how much goes back to USAT, but my guess it that its minimal.
Why is it that some of my friends are in the slimiest of industries?
I agree with you completely. I'm not defending them, I was just trying to answer your question. I send USAT a check myself, although, as you indicate, it is probably less expensive for them to do the transaction online(where one would hope that the computers are integrated so that someone doesn't have to manually enter every transaction again). But they make it less expensive for me to send them a check.
I could start ranting about how this is just one indicator that a company is not well run, or that it is not very good at creating the illusion that it represents its members when it is really just squeezing them dry, but I'll spare you.
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Thanks for sparing me:) I got it and I will be sending them a check too.