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Author Topic: Do you charge your customers a service charge if they pay with a credit card? Paul Van Dusen Film Handler Posts: 82 From: Roanoke, VA Registered: Feb 2006 posted 11-27-2006 12:53 PM                        It all depends on the computer system the theatre has. We have the IQ 0, so our machine is seperate from the terminal, and it will only take ATM cards. I know, debit should be ATM as well, but in this case it's not. Nearly every debit card has an Interlink logo on the back of it, and I dunno about all carmikes, but our machine won't take them. However if the theatre has the IQ 2000 they can take credit card transactions and i'm pretty sure there is no service charge. Basically the IQ 0 machines are setup as an ATM who's screen is the box office employee. lol Luckily for us we're getting upgraded to IQ 2000 in the next few weeks. The whole company, actually, is changing over in an effort to be sarbanes-oxley compliant.  |  IP: Logged Dustin Mitchell Phenomenal Film Handler Posts: 1865 From: Mondovi, WI, USA Registered: Mar 2000 posted 11-27-2006 07:38 PM                     The credit/debit thing has nothing to do with IQ 0/IQ 2000. Carmike first started experimenting with taking credit/debit cards in the late 90's. Larger theatres such as the Wynnsong 15 in Moundsview, the Carmike 15 in Apple Valley, and the Oakdale Stadium 20 (all suburbs of Minneapolis/St. Paul) have been taking credit cards since they opened in the late 90's. The Apple Valley and Moundsview plexes opened with IQ 0 systems I believe. When they were upgraded to IQ 2000 that's when the card swipes were integrated into the POS terminals. The third party vendor that Carmike had contracted with to enable these sales though was apparantly not too cheap. On top of the merchant transactions fee charged by the card companies the company that maintained the reader system was also charging very high fees. The new system Carmike is installing is maintained by a different company. The choice to allow only debit or debit and credit transactions is a business one-it has nothing to do with the computer system present at the theatre as the readers are not tied into the POS system. Any theatre that is still using the built in card swipes on their IQ 2000 registers is not using the new system. As a note, certain debit cards aren't accepted (such as the ones that say interlink on the back) because they do not allow a fee to be charged to the cardholder. If the theatre is credit capable then transaction can just be ran as a credit one instead of a debit.  |  IP: Logged Jason Black Phenomenal Film Handler Posts: 1723 From: Myrtle Beach, SC, USA Registered: Nov 2000 posted 11-27-2006 08:37 PM                        Dustin: You may want to double check the fact that Carmike doesn't make anything on the debit fee. They do... I won't reveal the amount, and I'm sure it's likely chnaged over the last two years that I've been gone.. but Carmike DOES make money on the fee.  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 11-27-2006 08:41 PM                        So is IQ 0 pronounced "Eye Cue Zero" or "Eye Cue Oh"? Either way...that's the most doofus computer system name I've ever heard of.  |  IP: Logged Dustin Mitchell Phenomenal Film Handler Posts: 1865 From: Mondovi, WI, USA Registered: Mar 2000 posted 11-27-2006 09:13 PM                     'Zero', the reasoning being it only takes an IQ of zero to operate the system (which is a good thing considering some Carmike managers). Course then they came out with IQ 2000.... Jason, news to me. If that is true then it must some form of repayment back to Carmike from the reader company. None of the $0.99 is deposited with the daily reciepts at the end of the night. All things considered, I would be very surprised if any portion Carmike did get from the $0.99 debit fee even came close to convering the cost of the transaction fees charged by the credit card companies, the per transaction fee I am assuming the card reader company charges, and the rental fee for the readers themselves.  |  IP: Logged Charles Greenlee Jedi Master Film Handler Posts: 801 From: Savannah, Ga, U.S. Registered: Jun 2006 posted 11-27-2006 10:44 PM                        Yeah the Carmike 10 had IQ-0's and were taking credit through the standalone reader. Wynnsong 11 had IQ-2000's but still used a standalone reader which allowed only debit/ATM, at a 99c processing fee. Oddly enough, if you had an interlink card, you weren't charged the fee, that is until Carmike realised this and disallowed us to take interlink cards. They eventually had the readers setup not to process interlink cards. I guess Carmike wants their processing fee. I think they're both on IQ-2000 now, and running credit only.  |  IP: Logged Anslem Rayburn Master Film Handler Posts: 476 From: Yuma, AZ, USA Registered: May 2002 posted 11-28-2006 07:53 AM                     Our share of ATM fees are payed by check (or deposit) from the ATM machine company. I don't ever see the amounts, but I know we get a decent share of the fees. I would imagine that any service fee charged for debit transactions would work the same way, though we don't take debit cards at registers, only credit cards. If a company is charging a service fee, I guarantee that some percentage of it is going to that company at some point. Also, before we started accepting credit cards, we had several companies approach us about taking debit cards. They offered us free equipment and maintenance, as well as a percentage of the fees charged for using it. Same deal with out ATM. We pay a fee for every credit card transaction (plus we maintain the equipment), but pay nothing for the ATM in our theater (or it's paper and maintenance, restocking, etc.). We get paid to have the ATM on site by way of a percentage of the fees charged. We only pay for a phone line and electricity.  |  IP: Logged Ron Curran Jedi Master Film Handler Posts: 504 From: Springwood NSW Australia Registered: Feb 2006 posted 11-28-2006 04:59 PM                        I believe that the film distributor can claim a percentage of the add-ons to tickets, such as booking fees and credit card fees. But the theatre can not deduct credit card charges from film hire.  |  IP: Logged Dustin Mitchell Phenomenal Film Handler Posts: 1865 From: Mondovi, WI, USA Registered: Mar 2000 posted 11-28-2006 05:49 PM                     An excellent point about fee deductions and film rent Ron. If you're paying 3% that whole amount needs to come out of YOUR portion of the tickets sales. This means mininum you're effectively paying 6% on your portion of the ticket revenue (assuming a 50/50 split)-and we all know that the theatre share is often less. What really annoyed me was before we got credit card readers the people who acted like it was their right to use a credit card and we were displaying the worst customer service imaginable by not taking them. "When are you going to enter the 21st century?!" was a common statement from ticked off customers. I feebly tried to explain to one irrate woman once that the transaction fees could be quite prohibitive to us. Before I could even get into film rent (she was pretty upset so I was willing to give a detailed explanation) she fired back with the "Oh I know, I own my own business." Well whoop-dee-fucking doo. Sorry for the mini-rant. I understand that taking credit cards is a necessary expense for businesses in this day and age and if I was the owner of my theatre I probably would have taken them long ago. The attitude still pisses me off though.  |  IP: Logged Steve Guttag We forgot the crackers Gromit!!! Posts: 12814 From: Annapolis, MD Registered: Dec 1999 posted 11-28-2006 07:02 PM                     You know...each bill in the USA states that it is legal tender for all debts public and private...credit cards do NOT enjoy that status as only the Federal Government has the power to make currency. Again, the ATM in the lobby would satisfy their "right" to use a credit card and provide a profit center as well for the "service."  |  IP: Logged Jack Ondracek Film God Posts: 2348 From: Port Orchard, WA, USA Registered: Oct 2002 posted 11-28-2006 08:03 PM                        I find it interesting that by charging fees, the use of a credit card would be seen as a potential revenue stream for a business. We find that encouraging the use of these cards results in more sales and less reluctance to spend larger amounts than the customers might otherwise spend, which also increases customer satisfaction with their experience here. Shouldn't that be enough? As for the customers' expectations... it would seem they expect to be able to use cards most everywhere these days. We got in pretty early. I think only one other theatre in our area was taking cards, and at that it was only for admissions. The chains hadn't started yet. Card usage started very slow, but built each year. Now, it's about a third of our income.  |  IP: Logged Steve Guttag We forgot the crackers Gromit!!! Posts: 12814 From: Annapolis, MD Registered: Dec 1999 posted 11-28-2006 09:32 PM                     I don't dispute that accepting credit cards can potentially increase ones income substantially. When buying at the concession stand...it is much easier on the customer to not think about the total and just sign on the line or in many cases...just swipe the card and out with the goods. With cash, one sees their wallet/purse/money clip holding less and less from the moment they leave the house until they return...what they buy will be determined by "whats left". That handy piece of plastic makes it seem like a bottomless well while purchasing. The only think I really hate about it is the attitude that using a credit card is a right or feelings to that effect. They are not and most people use them for rather foolish banking. Personally, I use credit cards to avoid carrying large sums of cash around...and always pay to zero at the end of each month. I would NEVER freak out if someone didn't take my plastic...then again I may not spend the money there if it is a large purchase. Steve  |  IP: Logged Ky Boyd Hey I'm #23 Posts: 314 From: Santa Rosa, CA, USA Registered: Jun 99 posted 11-29-2006 12:36 AM                       Steve - are you actually a signer of an MLA from any of the major studios? The letters I have recieved from Fox as a signer could not be clearer. Any fee charged at the box office in conjunction with the sale of a ticket to a Fox film is considered by Fox to be part of the revenues on which film rental charges are based and should be included in any gross reporting. They make an exception for on-line sales convenience or service charges but not for sales at the box office.  |  IP: Logged Mike Blakesley Film God Posts: 12767 From: Forsyth, Montana Registered: Jun 99 posted 11-30-2006 02:47 PM                        This is a sideline, but I just got a letter here at my day job from our card processor. Get this: They are going to charge a $20 "Peak Season Processing Fee." The purpose of the fee is "to help ensure you continue to receive quality service during the busiest time of the year." Hmm, it's the busiest time of the year, they're making MORE MONEY than they usually make so...they add a special fee to help them count it all?  |  IP: Logged Bill Enos Film God Posts: 2081 From: Richmond, Virginia, USA Registered: Apr 2000 posted 11-30-2006 07:05 PM                     We have, on several occasions been solicited by ATM operators to put one of their machines in our lobby. They pay a monthly fee for the space plus some small percentage of the fees collected. No doubt a major chain would be offered a sweeter deal. We had to turn them all down due to lack of a suitable location for the machine and real difficulty in getting a phone line to the machine.  |  IP: Logged

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