This best describes when the Fire Services Fundraising Shop CIC is invited to attend an event to run a large formal retail outlet. We set up, sometimes outdoors in our own pop-up marquee, a larger shop that sells the more expensive items. Such as uniforms, well known branded toys and other items that are not part of the SIAB scheme. The shop can also accept all types of payment, including contactless credit and debit cards.
Immediately after the event and before leaving we will give the organizer a guaranteed 25% of the shop takings at the event. We require for them donate to a registered charity of their choice, and that they sign a form that this will be actioned.
Generally the takings would be higher with this type of set-up, but our overheads are also slightly higher. For example, fuel costs and the hire of a credit card reader. Also, a third to a half of all payments have been made by customers using credit/debit cards (and this is increasing). Therefore we will lose between 1.8% to 3.5% of the sale in merchant bank fees .
Even when the transaction has been accepted and approved by merchant bank, it can be rejected by the card issuer up to three days after the event. This means losing not only the sale money but the “purchased“ item/s as well.