(Redirected by atco <rcard(_at_)atco-usa(_dot_)com>)
At 10:39 AM 8/26/1997 -0500, you wrote:
I hear a lot of people on this list say that they accept credit cards,
and was wondering what the typical deals/fees/pitfalls are involved in
setting up a merchant checking account.
Also, do most people deal with their local bank for this service, or are
there reputable national companies that give better deals.
And what's the difference/benefits between having one of the electronic
machines vs. the carbon slider thingies.
--
Thanks,
Lane,
We had to work pretty hard to get a merchant account. Generally, banks and
such do accept home-based businesses. The problem is that too many
home-based businesses are not really businesses. Also, any small business
that makes a lot of phone sales will have a hard time. The problem for
them
is sales without signatures on the charge slip.
First, we investigated several national organizations and regional banks.
In each case, we were turned down, or turned off by high application fees,
high discount fees, or excessive paperwork required for application.
Finally three years ago, a neighbor of ours, who is on the board of
directors of a local bank helped. Knowing that we were a viable business,
he vouched for us, and things flew right through the system without a
hitch.
I think we have a good deal. We pay the greater of 2-1/2% of charges or
$15
per month, which is very reasonable as these things go. It isn't
free--there are months when we have no charges--but I'm sure it pays for
itself in the long run. Plus, it adds an aire of legitimacy to the
business.
We busted our buns to process the paperwork and provide the financials to
the bank in order to get our merchant account in time for the bridal show
season that year. We thought it might generate business at the shows, but
it didn't as far as I know. The problem is that most young folks are
"tapped out" with their cards, if they have them at all. Most of our
wedding business via credit card has been with parents or "older" couples.
We get quite a few retainer payments via phone paid this way. We also get
a
lot of payments for graduation and theater tapes via credit cards (at
$20-$30 each) over the phone.
When WEVA first came out with their service, we looked into it (even though
we already had a merchant account). The WEVA service looked good, but we
didn't change. I don't remember the particulars, but as I remember it, we
figured that it we might save a little, but we'd have to run a paperwork
and
financials gauntlet (don't underestimate the paperwork and financials
requirements). It's also very nice to deal with a bank that really, really
knows you by name.
If we had not already gotten a merchant account and had no other
alternatives, I'm sure the WEVA service would have been more attractive.
Case and Phyllis Marsh
Affordable Video Productions
Phyllis Marsh Productions
video(_at_)unforgettable(_dot_)com
cmarsh(_at_)dmv(_dot_)com
Easton MD 21601
410-822-9010