Page 16 - GBC Summer ENG flipbook 2024

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Golf Business Canada
• Customer Service: In cases where the GMS is also the bank card processor, a single call to customer service should be able to access the proper databases to resolve technical conflicts. A golf operator should no longer be passed back and forth between the GMS and processor.
• Group Benefits: If done correctly, the GMS should receive lower wholesale pricing from the bank card processors and merchant banks based on the breadth and total volume of hundreds of merchants in the software portfolio under contract.
Potential cons of GMS as a proprietary payment processor:
• Lack of choice: Unfortunately, in
general, when merchants’ choice is restricted, they are beholden to monopolistic behaviours such as teaser rates that coerce a merchant to convert to a particular merchant bank and then steadily ramp up the prices throughout the contract, knowing the merchant cannot switch banks without de-coupling from the GMS which can be cumbersome.
• Integrations are “in scope” for PCI compliance: PCI considers any entity that stores, processes, or transmits card data to be in scope. Additionally, any system component, person, or process that can impact cardholder data or cardholder data security is considered in scope. This may result in PCI Non-Compliance fees charged to your account.
3. De-Coupling
The other option is the least efficient, known as “de-coupling.” The transaction module, or brick, sits and operates totally separately from the GMS. This requires multiple steps from the staff to safely complete a bank card transaction, as the transaction module does not communicate with the GMS in any way whatsoever.
Additional “Other Fees”
Be aware of any additional fees that show up on your statement. The NGCOA Canada has compared hundreds of statements over the years and it is common for processors to “match” NGCOA Canada rates, but then charge substantial “other fees”. NGCOA Canada members on the Moneris program are charged a service fee of $4.95 per month. There are some additional fees to setting up onlne payments, and renting machines, but there are no “other fees” or hidden fees that you are paying on top of your processing fees.
SURCHARGING
The credit card transaction surcharging rules changed in October 2022, and the issue involves two points of discussion: what are the rules and things you need to know, and should you or shouldn’t you levy surcharges on your customers?
Each card brand – Visa, MasterCard, Discover, American Express, Interac, THE EXCHANGE, and UnionPay, has set its guidelines for merchants wanting to add surcharges for credit and debit cards — which means you should meet all of the applicable requirements before starting. Fortunately, the overall guidelines for the networks are mostly the same: • You must notify the card brands, merchant services provider or acquirer
in writing at least 30 days in advance. It is recommended to notify your
customers of your intent as well, but this is not required.
• Surcharge amounts are limited to your contracted rate for credit card transactions, capped by Canadian law at 2.4%. In other words, you cannot profit from surcharges; you can only recoup your baseline costs.
Surcharging is legally not allowed in the province of Quebec.
• You must post notifications at the entrance to your place of business and
the point of sale letting customers know they will pay a surcharge.
• Your sign also needs to specify the amount of the surcharge fee. You must also post this on your website store and tee time booking page if you accept prepaid tee times, at the snack shack, on the beverage cart, halfway houses, bars, simulators, and lessons if credit cards are accepted there. Similar rules apply to eCommerce businesses at the checkout
page of their websites.
•American Express only allows government agencies, educational
institutions, utility companies, and rental establishments (e.g., real estate rentals) to issue a surcharge. It is unclear whether municipal golf facilities qualify as a “government agency,” so it’s best to inquire within each municipality’s management.
• You must include the surcharge amount on the receipt as a separate line item. The surcharge must also be included in the network authorization request and settlement.