When I was in the hazardous waste business my boss loved to take a credit card for payment and would readily absorb the fee. It meant he got his money right away and didn’t have to wait 30 to 60 days for payment. Our margins were high enough that the trade off of fees for almost immediate access to the cash made sense.
I’ve only seen upcharges from smaller businesses who are most likely working on much tighter margins to be competitive. (I think the general public might be shocked at how small business margins actually are.) I also see businesses that don’t take Amex because they charge the highest fees in the business.
I am mildly shocked to hear that Casella Waste is up charging for credit card use. Their margins should be high enough to absorb the fees but, I also bet that they have a lot of people extending their payments well beyond their 30 day terms.
|