The Mudbox and Ward Café will no longer be taking credit or debit cards beginning today, according to owner Tom Gera.
Gera hopes to reduce his overhead costs by eliminating credit card company fees, which amount to thousands of dollars a month, he said.
The average transaction costs $2 to $3, for which Gera pays a fee of around 60 cents per purchase, causing the business to lose money.
“If you buy a $1 candy bar and give me a credit card, I lose money,” he said. “Especially in the library where one latte costs around $1.50 or $2, I pay 60 or 70 cents per transaction.”
The Mudbox and Ward Café will serve as trial runs to gauge reaction to and profitability of operating without a credit/debit system.
If Gera believes the decision was successful, he said he might expand the policy to Megabytes and the Katzen Café, which he also owns.
Gera said he believes the lowered cost to his businesses will allow them to maintain a high standard of customer service.
“Our prices of Starbucks coffee are cheaper than outside prices and we want to keep it that way,” he said. “It’s about personal care.”
Both vendors will continue to accept cash and EagleBucks, which Gera said is practical, since 90 percent of his customers are students who tend to use EagleBucks rather than credit cards.
“There will be a few customers who will complain, but if I make most of the customers happy, that’s what matters,” he said. “I think I can change people’s behavior and bring people on board with this.”
rkaras@theeagleonline.com
