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Credit cards charging businesses for their customers reward points?

Discussion in 'Business Operations' started by nlminc, Feb 29, 2008.

  1. nlminc

    nlminc LawnSite Bronze Member
    from GA
    Posts: 1,671

    My brother runs a computer and software business and told me the other night that Chase added $460.00 to his 2-3% bill after he charged a customer $11k on his Chase card for software. Chase said that my brothers company was responsible for the customers rewards points! He fought it and there was nothing he could do about it. How can they get away with this? This is the first I've heard of a charge being tagged on for someone's reward points.

    I want to add CC to my business, but not if I'm going to get slapped with paying for a customers reward points.
  2. pyrocare

    pyrocare LawnSite Member
    Posts: 96

    With QB Merchant services the best rate that they quote is for qualified purchases. Qualified purchases are for card swiped purchases. In the lawn industry most are considered Mid qualified purchases - or card number was keyed in but the address verification matches. The mid qualified purchases are 1/2% higher than the qualified. Although if the customer has a rewards card it is considered a non qualified purchase which has a rate almost double that of the qualified purchases.

    If he read the merchant agreement it would outline all of the rates and what is considered qualified, mid qualified, and non qualified purchases.

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