Why do merchants prefer e-gold to credit cards?
As a merchant accepting credit cards, you would pay a fee for every credit card transaction. Often this fee is about forty cents per transaction. In addition, you pay a fee based on the value of the transaction. This fee is often 5% or more. You also pay a monthly fee, often $40. You may pay a fee for equipment rental. You may pay a fee for a software license. These fees are deducted from your merchant account whether you make very many sales or not. If you have chargebacks, which many web merchants experience, you may be fined by the credit card company based on the volume of chargebacks – without regard to whether these chargebacks were contestable or valid. By way of contrast, if you accept e-gold, you pay a 1% fee on the amount received, capped at 50 cents. You pay 1% per annum in storage fees, collected monthly. So your monthly fee is one twelfth of one percent of the average balance in your e-gold account for the previous month. In other words, merchants should prefer e-gold to c
