Enumclaw Music owner David Bozich welcoming music students into the practice room. Photo by Ray Miller-Still

Enumclaw Music owner David Bozich welcoming music students into the practice room. Photo by Ray Miller-Still

Local business offers incentives to use cash, stop using credit cards

Enumclaw Music will return 2.5 percent of your purchase if you buy with cash.

Enumclaw Music has a message for Plateau shoppers: if you want to help local businesses, stop using your credit card.

To that effect, the music store has started a new reward program for folks who buy with cash by returning 2.5 percent of that purchase back to the customer.

“It’s a rebate, but we’re really calling it a reward, because it is rewarding them for acting fiscally responsible,” said owner David Bozich. “We want to reward people for keeping money locally, instead of sending it off to the big banks and the credit card companies.”

The world of credit cards is vast and sprawling, but in general, every time customers use a credit card, businesses have to pay a fee. For MasterCard, Visa, and Discover, that fee can be anywhere between 1.43 percent to 2.6 percent of the total purchase, according to Value Penguin; American Express’ fees are even higher, ranging from 2.5 to 3.5 percent (this explains why some businesses choose to not accept American Express credit cards).

And that’s not all — businesses likely also have to sign up with what’s known as a merchant services provider in order to even accept a credit card for payment, and those providers have fees of their own, most often a flat fee and a percentage of the purchase.

For businesses like Enumclaw Music, these fees add up quickly; Bozich said he spends hundreds of dollars a month on just credit card-related fees.

“That’s a part-time employee,” he said. “This is the reason why the big banks are getting so rich.”

Banks mostly make their money through credit card interest — for example, American Express made about $8.6 billion in 2019, while Chase Bank mad $51.6 billion through interest, according to Value Penguin.

But banks also make billions through credit card fees paid by businesses; American Express saw $4 billion roll into its coffers through those fees, and Chase Bank $20.3 billion.

Individually, this breaks down to the average American Express card user earning the bank about $60.43 annually through fees paid by businesses, according to 2017 data; Chase Bank account holders, $21.13.

“Think about it — how much money do you spend on a credit card a month? $2,000? $3,000 a month?” Bozich continued. “How much money of that is paid by the people you are buying from, and they are giving that money directly to the bank… that money is pure profit to them.”

Bozich invited anyone that has questions about the program, or how businesses deal with credit card payments, to visit him at his store at 1515 Cole St.

Talk to us

Please share your story tips by emailing editor@courierherald.com.

To share your opinion for publication, submit a letter through our website https://www.courierherald.com/submit-letter/. Include your name, address and daytime phone number. (We’ll only publish your name and hometown.) Please keep letters to 500 words or less.

More in Business

Corrine Hennessy getting ready to load up their cold-press juicer, Lucy Juicy. Photo by Ray Miller-Still
Cold juices, warm hearts at Our Hive

The Black Diamond cold-pressed juice store also offers take-and-make smoothie kits and healthy oat bites.

Whole Foods grocery store entrance (Shutterstock)
King County considers grocery store worker hazard pay for those in unincorporated areas

The King County Metropolitan Council will vote during its next meeting on… Continue reading

Don Brunell
Austin’s tax incentives and friendliness is working | Brunell

Seattle and Austin have a vastly different approach when it comes to major companies and incentives.

Don Brunell
Super Bowl ads: super expensive, super perplexing | Brunell

However, one advertiser —Weather Tech — stood above the rest.

Johanna Kraemer setting up her pop up plant shop, The Wild Fern Co., on Cole Street pre-pandemic. Courtesy photo
Wild Fern Co. pops up around Enumclaw

Houseplants are selling like hotcakes this year — and a local business can help you get started.

WA Democrats consider new tax on billionaires

Plan could raise $5 billion from fewer than 100 taxpayers. Detractors fear it could drive Washington’s wealthiest out of state.

Shop Enumclaw
Win a vacation by shopping in Enumclaw

Spend $25 at a local business to receive a raffle ticket at the Chamber of Commerce or Country Financial.

Don Brunell
Portland carbon tax may doom recyclers

The new taxes would raise more than $11 million from about 80 companies, including the Owens-Brockway plant.

Last summer, people took advantage of the outdoor dining along First Avenue between Gowe and Titus streets in downtown Kent. In Phase 2 of the governor’s reopening plan, which was announced Jan. 28, restaurants can reopen at a maximum 25% capacity and a limit of six people per table. Photo courtesy of Kent Downtown Partnership
Restaurant reprieve: State to relax some indoor restrictions

On Monday, area restaurants and certain entertainment venues may resume indoor service, the governor said.

Stock photo
State Senate passes $1.7 billion in unemployment insurance tax relief

Targets relief to the most affected businesses; helps low-wage workers by raising their benefits

Kim Smanse says many people first think the hats she makes are just for kids, but that they often change their minds after trying one on. “When you put these on, you’re going to feel funky, fun, flirty — and I’m not just saying that to sell you a hat," she said. In this picture, Smanse is selling her wares at Enumclaw's Friday Night Market. Photo by Ray Miller-Still
Wacky Wearables keeps clothes out of landfills, one sweater at a time

It all started with a stained sweater and a wood elf.

Don Brunell
Hydrogen gaining momentum as replacement truck fuel | Brunell

Drivers that use hydrogen can “fuel up” faster, and energy can be stored indefinitely without loss.