All credit card transactions will incur fees from the credit card companies. When we create e-commerce sites, we must decide whether we want to absorb those fees or pass them off to the customers. For domestic credit cards, the online credit card processing charge is 2.75% when you pass fees and 2.3% when you absorb fees. International credit cards are charged 4.25% in both methods. If you decide to absorb the fees, there will be a chargeback assessed against your revenue account at the beginning of each month (for the previous month's purchases). If your department is not able to absorb any costs, CASHNet can be configured to pass those fees onto the customer. Your accounts will not show the fees passed to the customers, but they will display on your CASHNet reports (as CONVFEE) and on the customer's credit card statements. If your department utilizes a third party vendor as a front-end of an e-commerce transaction, they may charge additional fees for their service.
Another consideration when dealing with credit card transactions, is the cost of data breaches. If there is a case of fraud in which Ball State University is found to be guilty of poorly handling credit card data, we could incur fees of up to $200 per breached card number. This includes forensic investigations ($50,000 - $100,000), repairs, new software/hardware/personnel investments, victim communication and credit monitoring, legal expenses, bank reimbursements, bank and card brand fines (up to $500,000 from each card brand). We would have to hire an external investigator for at least one year (approx. $50,000). We may also get penalized by our acquirer in the form of increased credit card processing fees, or even the cancellation of our contracts entirely. This is why it is very important
that Ball State University is never found to be in the "scope" of a credit card data violation. If we utilize only approved payment processors, like CASHNet, and follow the procedures outlined in the Credit/Debit Card Handling Procedure
, we should be safe from such litigation.