You have not concept on how merchant agreements work...Your "merchant friend" is dumb or your dumber. Someone is eating the Merchant fee of 1% to 3.5% so on five grand your friend is losing over a $100 bucks which could be in his pocket.

Now if you really mean your merchant friend is not trully a meachant but acting as a sales agent such as travel agency..then both of you are "putting it" it to the real merchant like an airline.