Card Processing Companies

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Posted on Wed, 11/20/2013 - 7:22am

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We discussed this earlier in the year, but now is the time to act.

We're paying far too much for our card processing, 2.7% on credit cards, 25p debit and £25 a month for the machine. I had a cold call from Unit edMerc hantSer vices some months ago, which makes me a bit nervous, but they are quoting me prices less than half of the above, for 4 years, min contract 18 months.

Spoke to them again today (they called me) and I'm on the verge of switching.

Anyone have any experiences of this company ?

I told the guy I wanted 24 hours to think about it, and I was heartened by the fact he didn't try to pressure me into it, instead made an appointment with me to call back tomorrow.

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This comment (154589) was in reply to the Original Topic on Thu, 03/27/2014 - 7:46pm

#1 TOP

Arks

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10% discount to get payments in cash? Why? I can only come up with one reason. I think someone is not reporting all that cash on their tax reports!

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This comment (154624) was in reply to comment 154589 on Fri, 03/28/2014 - 10:43am

#2 TOP

Generic

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Cash discounts (usually not that large) can be used to compensate for the usage of a credit card.

Just to give an example, assuming that CC charges are actually 3% (some are lower, some are higher). The tax is 15% and the room is $100.

Example 1: Paid by credit card

$100+$15 tax = $115 charge
$3.45 CC charge
$15.00 tax payable
$96.55 net to B&B per $100, so real discount rate is 3.45%.

Example 2: Paid by cash, 4% discount (before tax)

$96+$14.44tax = $110.44 charge
$14.44 tax payable
$96 net to B&B per 100%, so real discount is 4%
(And I have fees related to deposit cash or cheque in my account)

Example 3: Paid by debit card, 3% discount

$97+$14.55=$111.55
$0.06 debt card charge
$14.55 tax payable
$96.94 net to B&B per $100.

So when someone uses our national debit card system, even if I give them 3%, I still make more money and we BOTH win. Only real loser... government, who makes $0.45 less. And until I close the bill, I can discount before tax.

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This comment (154597) was in reply to comment 154589 on Thu, 03/27/2014 - 8:39pm

#3 TOP

Breakfast Diva

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Arks wrote:

10% discount to get payments in cash? Why? I can only come up with one reason. I think someone is not reporting all that cash on their tax reports!

This comment (154600) was in reply to comment 154597 on Thu, 03/27/2014 - 9:55pm

#4 TOP

jmj

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I am asking for the discount, they are not soliciting it from me. I think there is a small movement to fight back against rampant consumerism and keep their spending habits private. Cash is one way to do this.

And ouch, there must be other, more profitable ways to be a tax cheat.

This comment (154616) was in reply to comment 154600 on Fri, 03/28/2014 - 9:19am

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JBloggs

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jmjaeger wrote:

And ouch, there must be other, more profitable ways to be a tax cheat.

Everyone wants a discount. YOU are soliciting it from us. We offer a discount to book your room online already.

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This comment (154615) was in reply to comment 154600 on Fri, 03/28/2014 - 9:17am

#6 TOP

JBloggs

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jmjaeger wrote:

And ouch, there must be other, more profitable ways to be a tax cheat.

But so you know, we will still require a credit card for you to reserve a room and stay with us.

Why? There are a few good reasons. The newspapers are full of them.

This comment (154609) was in reply to comment 154600 on Fri, 03/28/2014 - 6:19am

#7 TOP

Arks

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jmjaeger wrote:

And ouch, there must be other, more profitable ways to be a tax cheat.

I think not reporting cash income is probably the most common form of tax cheating. When you're paying 25% or more of what you make in taxes, that's plenty of incentive for some people to under-report and keep 100%.

I agree that paying cash rather than charging it is a great way to combat buying more than you need, but it's not worth 10% off! If I didn't need 100% of what I charge, I'd lower my rates for everybody, not just the ones who pressure me by asking for a discount.

This comment (154613) was in reply to comment 154609 on Fri, 03/28/2014 - 8:37am

#8 TOP

jmj

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This to is good to know. Do a lot of people ask for discounts? Also, doesn't have to be 10%, could be just what the cc processor is charging. I have seen signs that state that, 3% ( or whatever) if cash is used. Not sure if that is ok with the processor, but have seen that.

Thanks, just stumbled on to this site, and think its great. If all goes well, my husband and I will be an owner in a couple months. Thanks to all who contribute here!

This comment (154489) was in reply to the Original Topic on Wed, 03/26/2014 - 5:44pm

#9 TOP

jmj

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I have been on a cash only diet the last 7 months. If an offer of a discount was given based on paying cash, my husband and I would take it (if at all possible). If you try this, you might be surprised. When we have been given a discount, we have also shared with f/f on facebook. Their response was positive as well.

This comment (154490) was in reply to comment 154489 on Wed, 03/26/2014 - 6:01pm

#10 TOP

Madeleine

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How much of a cash discount would make a difference?

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This comment (154587) was in reply to comment 154490 on Thu, 03/27/2014 - 7:32pm

#11 TOP

jmj

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Hmmm...good question. At this point, I am just happy if there is any cash discount. But so far, it seems like 10% is what is offered. And so, if there was a price difference of about 10%, and the two places were about equal, I would go with the 10% discounted place.

But its not just the discount that I like. To me, it seems like when a business offers and gives a cash discount, they are acknowledging that I am making a financial choice to use cash, opposed to the easy, very common use of CC's. They understand that my money is hard earned, because, well, it is already earned, not credit to be paid later. I like that.

On a side note, there was an article in the Denver Post today that said the city is acutally loosing money when people pay with cash instead of cc's! Have to hire more etc...I am thinking. This was pretty shocking...the city is now saying people should prefer to pay with CC's so the city can save money, when in fact, many are tied to cc's in a very unhealthy way.

This comment (154614) was in reply to comment 154587 on Fri, 03/28/2014 - 9:08am

#12 TOP

gillumhouse

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jmjaeger wrote:

Hmmm...good question. At this point, I am just happy if there is any cash discount. But so far, it seems like 10% is what is offered. And so, if there was a price difference of about 10%, and the two places were about equal, I would go with the 10% discounted place.

Come back and tell us how you feel about a 10% discount after you become a business owner.

I am actually addressing the comment about the city and cc. Yes, it DOES cost the city more to take cash. My city has started taking online payments. WHY? Because the residents want to be able to pay their water bills, etc with a credit or debit card. Credit card payments require NO Salary or Benefits. Here it is not to do away with an employee, but to please the "customers" and to make better use of her time in the office. We are a small city with a small staff. I am "in the know" on this because I am City Clerk - aka "City Slave" because I want to be. Hours I put in saves the hours(paid) of office staff ro do important things.

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This comment (154588) was in reply to comment 154587 on Thu, 03/27/2014 - 7:42pm

#13 TOP

Madeleine

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So, the processor charges me 3.5% and to get someone to pay cash I have to discount by 10%? That math doesn't work for me.

This comment (154598) was in reply to comment 154588 on Thu, 03/27/2014 - 9:51pm

#14 TOP

jmj

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You forgot that I have told all my friends about your place and that you have made me a loyal, repeat customer.

This comment (154619) was in reply to comment 154598 on Fri, 03/28/2014 - 9:35am

#15 TOP

white pine

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I figure that people who are looking for discounts are NOT loyal customers...they will go to the next cheaper place who will give them a "better" deal. Reality is we have bills to pay, we give the best rates to everyone that we can afford. We work long and hard for our money.

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This comment (154605) was in reply to comment 154598 on Fri, 03/28/2014 - 3:07am

#16 TOP

Madeleine

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jmjaeger wrote:

You forgot that I have told all my friends about your place and that you have made me a loyal, repeat customer.

And all your friends want 10% off and I have to raise prices to stay in business.

In all honesty, we get about zero business from friends telling friends. maybe 1 person a year says their friends stayed here.

This comment (154612) was in reply to comment 154605 on Fri, 03/28/2014 - 8:31am

#17 TOP

jmj

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Ok, well that's fair, and good to know. I guess people have so many choice now a days, personal recommendations don,t nean as much. Bummer.

This comment (149632) was in reply to the Original Topic on Fri, 12/06/2013 - 12:31pm

#18 TOP

Highlands John

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I've taken the plunge and so far I'm delighted with my new supplier. The guy asked me lots of questions on the phone about my business and how we work (deposits, turnover, card types, CNPs, that type of thing), next day emailed me the forms, to checked, signed and return. To my amazement a week later my new machine arrived. Plugged it in and off I go. Absolutely delighted.

The previous company took seven weeks to get my machine to me. Plus I phoned the processing bank this week to cancel my account, they told me I need to contact the company I originally took out the machine with. I phoned them on their customer service number and had to press loads of buttons and wait 15 minutes to get through to a human. They told me they had to put me through to another department and after listening to banal music for 10 minutes I slammed the phone down. I then started their chat facility on their website and was given another number of an account manager, phoned them and was told I have to cancel the rent of the machine and return it first, which is with another company, then they can close my account with the bank.

As if all this wasn't enough to convince me I've made the right decision to move, no-one except the holdings company that rent me the machine has even bothered to ask me why I'm cancelling or offer me a better deal (not that I'd take it now anyway).

This comment (149193) was in reply to the Original Topic on Mon, 11/25/2013 - 2:56pm

#19 TOP

Buckeye

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I think the whole industry with corrupt with greed. Sadly, we must "play the game" to do credit card business and - as best as we can - build the "surcharges" (they call it "discount" - even the TERM is corrupted!) into room rates.

I've yet to see a business slap on a credit card usage fee on a purchase (except for those "cash/credit" gas stations) even though it is now deemed legal.

This comment (149196) was in reply to comment 149193 on Mon, 11/25/2013 - 3:44pm

#20 TOP

Generic

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There are a few businesses around here that upcharge when you want to pay with a debit card. It costs me 6c a transaction and they want me to agree to pay 75c for using a debit card. End result, I cancel the purchase. But there are a few businesses that offer a cash discount and those... I use. Let's face it, none of the rewards get anywhere close to the 5% cash discount I get offered from time to time to pay with cash.

This comment (149634) was in reply to comment 149196 on Fri, 12/06/2013 - 12:46pm

#21 TOP

Highlands John

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Sugar Bear wrote:

I did notice when reading through my contract details of my new machine that I'm not allowed to make an additional charge for debit cards.

I have a note in my guest rooms that basically says we don't charge extra for guests to pay by card, but our processing charge is much lower for debit cards, so if they have the choice a debit card helps keep our processing charges lower. Quite a lot of people comment on that when paying by debit card.

This comment (149651) was in reply to comment 149634 on Fri, 12/06/2013 - 3:03pm

#22 TOP

Generic

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We actually discount if they don't use a CC. Makes some people realize that there is a cost associated with it.

This comment (148958) was in reply to the Original Topic on Wed, 11/20/2013 - 5:06pm

#23 TOP

Copperhead

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HJ, I would google them for to see if there is anything about them online. And I would do some price comparisons with others like the one Cam is sending and any others you can find as well.
Personally I wouldn't go with a company that makes you sign a contract with a time commitment. Note: that is now, when we first started it was the norm, not now.
I also would like to know how you (or your reader) can tell if a card is a rewards card.

This comment (148956) was in reply to the Original Topic on Wed, 11/20/2013 - 4:26pm

#24 TOP

Joey Camb

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we will be going back to Evalon and retail merchant services - ive got a good contact ill send you the info

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This comment (148946) was in reply to the Original Topic on Wed, 11/20/2013 - 12:52pm

#25 TOP

JBloggs

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Every card I get here is a rewards card. Every last one of them. Maybe diff there.

This comment (148944) was in reply to the Original Topic on Wed, 11/20/2013 - 12:37pm

#26 TOP

OnTheShore

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When someone presents you with a credit card, or gives you the info on the phone, or enters it online, how do you know whether it is a rewards card or not?

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This comment (148945) was in reply to comment 148944 on Wed, 11/20/2013 - 12:43pm

#27 TOP

Highlands John

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It states we don't accept them on our website and our machine rejects them.

This comment (148930) was in reply to the Original Topic on Wed, 11/20/2013 - 8:05am

#28 TOP

Madeleine

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Here's how it works here, which doesn't help with that company...they always quote the rate for the plain, vanilla cards. They never quote the rate for the rewards cards. Now, if it works differently over there good for you for getting a way lower rate!

This comment (148943) was in reply to comment 148930 on Wed, 11/20/2013 - 12:33pm

#29 TOP

Highlands John

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Thanks, but to be fair to them they've quoted me for reward cards too, I just didn't mention that in my post because we don't currently accept them nor have any plans to.

This comment (148954) was in reply to comment 148943 on Wed, 11/20/2013 - 2:49pm

#30 TOP

Madeleine

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Highlands John wrote:

Thanks, but to be fair to them they've quoted me for reward cards too, I just didn't mention that in my post because we don't currently accept them nor have any plans to.

Are we talking apples to apples here? A reward card being one that offers airline miles or cash money back to the cardholder? Not talking about the cards stores hand out when you do a 'spend $100, get a $50 rewards card in return'.

You can deny taking a rewards card? I'm moving. Tomorrow.

This comment (148999) was in reply to comment 148954 on Thu, 11/21/2013 - 4:35pm

#31 TOP

BananaE29

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Madeleine wrote:

Highlands John wrote:

Thanks, but to be fair to them they've quoted me for reward cards too, I just didn't mention that in my post because we don't currently accept them nor have any plans to.

You can deny taking a rewards card? I'm moving. Tomorrow.

Geez, me too! Just about every single card I take is a rewards card. I was under the impression you can not deny any rewards cards - according to V and M_C rules & regulations.

This comment (154195) was in reply to comment 148999 on Tue, 03/18/2014 - 5:14pm

#32 TOP

MountainMystery

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I think the vast majority of cards being issued now are rewards cards, and I don't think most people know that as merchants, we're charged more to accept those cards. And of course the CC companies continue to push those cards out to their customers because the customers like the rewards and the companies get more money out of us! It's definitely crappy that we end up paying the expense of the CC companies' rewards and marketing efforts to get more cards in more people's hands.

And of course, if we don't take the rewards cards, then guests get upset and decide to stay elsewhere where they can swipe with their Blue Cash Preferred card from American Express.

*takes a deep breath and steps down carefully off her soap box*

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