financial

Takapuna Brakes & Automotive had a two-years of start-up business loan package from the ASB bank, which now has been paid off. During the two years of period the bank will waive off the transaction and administration fees such as manual transaction fee for ATM fees, cheque and deposit fees. But a 6.25% of interest rate was charged by the bank for the loan to the workshop. The workshop accepts Eftpos, cash and credit card payments. However, for credit card transactions, a 3% charge will be laid to the customers. Since most of the customers are Kivi, they prefer using credit card payments. So having the option of credit card payment is very important in this workshop. However, most of the Chinese oriented workshops do not provide this option because of the extra 3% charges for the services. It is a quite easy math, every $100 transaction; $3 has to be charged by the credit cart suppliers. If a workshop has a ability of making $250,000.00 transaction annually, which means $250,000.00×3%=$ 7,500.00 will be lost as the workshop profit. The common practice in New Zealand is that when extra charge has to be laid on credit card transaction, the customers are should be told of this. And also there are a lot of companies charge nothing for credit-card payment.