Today I had a service call to get my washing machine working. (The problem turned out to be the lid switch had failed mid-cycle.) When I called for service, the gentleman told me that they don't take credit cards. I hadn't asked about it; he was just making sure I knew up front. I was fine with that and told him I'd pay by check.
He was talkative and went on to tell me they stopped taking cards when their processing center charged them $65 on a $100 charge. I'm sort of dense, and forced the meaning to be a 35% overhead. He corrected me back to the 65% originally stated. Mentally that seems way too high; I always thought the overhead on cards was 5% to 10%. He had no reason to make that up, though. I hadn't pressed the issue of them not taking cards at all, and everything he told me about it was him just talking. The only point where I questioned anything was when I asked about the 35% overhead. The brand of card was never mentioned.
Did he make that up, or can small credit-volume businesses experience processing costs as high as 65%?