John Marshall of Main Street Bistro, Princeton
There seems to be a lot of misinformation about the Heartland Payment Systems Community OneCard. I’d like to share my thoughts on the economics and benefits for merchants and the community.
The OneCard is a plastic Robin Hood, taking from one to give to another. Banks issuing credit cards take a percentage from each purchase. The Heartland Community One Card also takes a percentage; however, 100 percent is directed back into the local community.
I can’t think of a single merchant who feels that today’s credit card discount rates are fair. They are an expensive part of doing business, and these rates go up annually. Merchants typically pay around two percent on Visa and MasterCard sales, while Diners, Discover and American Express are three percent or more.
Heartland is proposing a 1.5 percent card. In my establishment, American Express accounts for about a third of total charges, giving me an average rate of 2.25 percent. This means that I can expect to save 33 percent on credit transaction fees with OneCard purchases, while knowing that the 1.5 percent that I pay stays here in Princeton.
Recently a local merchant claimed that it is unfair that he must pay $55 per month to rent a Heartland processing terminal if he is not already a Heartland client. (Existing clients pay $15.) What this argument fails to recognize is that at $7,000 or more in OneCard receipts, the equipment cost is recovered and $105 in redistributed fees goes to the library or other designated non-profit.
Another argument I have heard is that this program is discriminatory to those who do not participate. I agree. Advertising is also discriminatory against those that do not advertise. Consumers are discriminating. Each merchant attempts to attract the desired set of consumers that match their set of products using marketing techniques. Marketing costs money. What other kind of community-wide value vehicle could one expect to get for the same $55 per month?
OneCard holders are empowered. The individual chooses where to shop and what card they wish to use. Two thirds of the card fees belong to the cardholder. They may choose to direct these funds to the library, any other participating non-profit, or they can keep the cash. If they donate the funds they also enjoy a tax deduction.
The Heartland Community OneCard is a unique opportunity for our community and merchants to reinvest in the local non-profit community. It is a device that can provide every member of a community the ability to participate in a social reward program through routine transactions.
John Marshall, Proprietor
Main Street Bistro
Harrison Street
Princeton
