Online Shopping Secrets: the hidden fees credit card companies and processors don’t want you to know about
Did you ever wonder why companies charge a restocking fee? Before we started Qore Performance, we did too. Especially since in those rare instances that we return items, we, like you, make sure they are returned in pristine condition. It only seems fair to get a full refund, right?
Well, yes, but that does not take into account the fee that payment processors charge. Every time you pay with a credit or debit card, the company you are purchasing from is charged a fee to process that payment. Typically this fee is a percentage of the total payment, and varies from 2-3%. International payment processing fees are a percent or two higher. The worst part? With most payment processors, it’s completely nonrefundable, even if the charge is reversed. For us it looks something like this:
ACTION |
|
CUSTOMER | QORE PERFORMANCE® | PAYMENT PROCESSOR |
---|---|---|---|---|
New Order Placed | John Doe placed this order on Online Store (checkout #2323xxxxxxxx). |
|
|
|
New Order Paid | A $952.78 USD payment was processed using a Mastercard ending in xxxx. | -952.78 |
|
|
Payment Processed | $918.18 USD will be added to your Mar 25, 2022 payout. |
|
+918.18 | +34.6 |
Order Canceled | John Doe canceled this order |
|
|
|
Refund Paid | Refund Paid You refunded this order using a Mastercard ending in xxxx. | +918.18 |
|
|
Refund Processed | $918.18 USD refund was deducted from your Mar 28, 2022 payout. |
|
-918.18 |
|
Aggregate | Total | -34.6 | 0 | +34.6 |
Unfortunately, there are not many options to work around this. Since payment processors charge this as soon as the initial payment is processed, we do not ever even have 100% of the funds in our account.
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