A Question for Business Owners (and others with input)
 

Quhhg

Raise red flags?

I would say....yes if it's a big chunk of your overall revenue.

That's what I thought...but in the end though, nothing illegal right? It LOOKS like laundering or something nefarious, but in the end its a net gain/loss of zero for the business. I think. Right?

Maybe? They don't get to run CC's for free.

Merchant fees
 

You would be losing the merchant interchange fee (approx. 2%, depending on how much volume you do), along with probably breaking the TOS of most of the processors.

Sure, but they're fairly small and negligible. I guess then though we'd be getting into the realm of using business funds for non-business purposes, even if fairly minor. Alright. Could probably retire this thread.

Why would you cost yourself 2% merchant fee to gain miles? That doesn't make any sense. If you had no transaction costs, then yes it would work, but everyone has transaction fees.

It's against the rules of all the credit card merchants agreements that I've ever seen.

Many credit cards also charge you the percentage on both the initial transaction and the refund. 2% is very low for most small businesses, 3% or more these days is often the norm.

We do it all the time but things with our CC from our supplier and then sell them, been doing it for years,

I see no reason to pay 2% for any miles...have more than I need.

If there was only a way I could pay all my suppliers with CC, I'd be rich! My 2 biggest suppliers only take ETF or check. Any suggestions?

edit until I check into things

the 2% fees are really cheap when you use card readers to cover your minimum spends. 2% is only $20 for every $1,000 you have to spend.
That's all I'm saying about that ;)

In other news, our main supplier (10-30k a month) is letting me pay with credit cards now and not charging me 3% anymore! Wooooo

2-3 cents per *redeemable mile* is pretty bad. You can buy them outright for that little and, if there's a promo going on, for cheaper than that.

The only way I see it making sense is to meet bonus spending requirements.

This is actually all I really meant regarding this. Guess I could have been a little more clear. @:-)