Absorbing Costs Considered Harmful

Ensuring Honesty Through Transparency

It is enlightening to read credit card processing agreements, they can be filled with some of the most ridiculous terms of use. The most offensive requirement that we have read to date is the following:

The merchant cannot charge the customer directly for the credit card fee, instead the merchant must absorb the cost.

This clause is in there because the credit card processor doesn’t want people to see that 5-20% of some low-dollar transactions go to them. The credit agencies force merchants to raise their prices and “absorb the cost” rather than display how much using a credit card is costing the customer. We have never, to date, signed an agreement with anybody that stipulates that we can’t tell our customers where their money is going. We strive to provide financial transparency at all times.

Rolling credit card fees into the cost of operating Bitmunk is also mis-leading to our customers. There is not a single for-profit company on this planet that “absorbs the cost”.

Corporations do not absorb costs, they pass them on to the customer.

Every dollar that a corporation receives comes from its customers in some way and it is a deceptive practice to state that a company is absorbing costs. Absorbing costs also harms transparency because it prevents a corporation from being honest about where the money is spent in an organization.

We hope to continue to be transparent in how we operate Bitmunk and Digital Bazaar – the details are there so that our customers can make a better decision about whether they want to spend their money with us, or with one of our competitors.

We hope to never state that we’re absorbing costs. We view “absorbing costs” as being analogous to “hiding costs”. Hidden costs are rarely, if ever, beneficial to our customers.


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