It is always shocking that tournament organizers worry about 2.5-3% credit card processing fees. You always hear –“We’re losing money on every transaction!”
This perspective misses the larger reality: you’re not losing 3% of revenue; you’re gaining 100% of transactions that wouldn’t happen without card acceptance.
Cash-Only Raffle Example:
- 144 golfers attend
- 40% carry enough cash for raffle tickets
- Average cash purchase: $20
- Total revenue: $1,152
Card-Accepted Raffle Example:
- 144 golfers attend
- Up to 90% participate when cards accepted
- Average card purchase: $40 (impulse purchases increase)
- Processing fee: 2.9%
- Net revenue: $5,200 – $151 credit card fees = $5,049
The value of using credit card readers and QR Codes more than offsets processing fees many times over. This same principle applies to every revenue stream that you have.
Card acceptance doesn’t cost money. It makes money. Lots of it.