b'FOGHORN FOCUSThe Cost of Payment AcceptanceTHEODORE KEITH, JR.// THRIVE PAYMENTS F or passenger vessel operators, credit and debit card payment ac- COST COMPONENTSPHOTO: CLAY BANKS / UNSPLASH ceptance can be a significant expense. This article is designed toCard acceptance involves several cost components, and within each one provide a clearer perspective on the cost components involved, thethere can be a great deal of complexity. The single largest cost is called pricing methodologies of merchant service providers, and some pros andinterchange fees, and this is typically 75-80 percent of the cost of accep-cons of software companies integrating payments into their offering.tance and about 1.9 percent of your sales volume. Although the cost Further, we will explore the infamous merchant statement and leveragecan be higher for certain situations, namely if the card is not present or industry knowledge and experience to provide suggestions on how towhen commercial/business cards are used. Interchange fees paid to the reduce your cost of card acceptance.credit or debit card issuer by the bank or provider with whom you have a FOGHORN 20'