[pianotech] Credit Card Service providers - which one

[Roger@Integra.net]

Wim and all,
To digress slightly; originally credit card contracts required the merchants to agree not to advertise or charge less for cash sales, less they loose their credit card privileges . About 3 years ago, in the wake of the financial collapse, the credit card companies agreed to loosen up their policies by allowing the merchants to offer, at the point-of sale, a discount for cash purchases. The public didn’t realize this option because the large merchants found it too cumbersome to implement this discount at the checkout counter, but some small businesses were taking advantage of this loophole – which I do. Now, (beginning 1-27-13) as a result of a recent federal lawsuit against the credit card companies and banks, the merchants can now advertise and charge at the point-of-sale an additional fee (up to 4%) for credit card purchases. This lawsuit stemmed from the increasing number of “corporate” issued credit cards that were offering cash back, discounts, and airline mileage bonuses to the card user. These bonuses are discounted from the merchants reimbursements, and amounted to as much as 9% when totaling up all the miscellaneous charges associated with credit card transactions. Additionally, the merchants had no way of knowing these fees until they received their monthly bill at the end of the month. This new added credit card fee has already been implemented at a local gas station – which jumped the 1-27-13 starting date – by adding 10 cents a gallon for credit card users. Expect to see these additional credit card charges from merchants in the near future. Now the public will realize that these bonuses offered to the card user are actually costing them up front.
Roger Gable

From: tnrwim at aol.com 
Sent: Thursday, January 24, 2013 8:07 AM
To: larry_fisher at pdxtuner.com ; pianotech at ptg.org 
Subject: Re: [pianotech] Credit Card Service providers - which one

Larry

For what it's worth, not accepting cc's for the reasons you describe is like not tuning the rest of the pianos in a church because the church is now using an electronic piano in their sanctuary. 

Yes, many of my customers use a cc so they can get miles, or cash back. But I do the same thing. I used my miles to fly to Phoenix for the Westpac convention.  I also get a check from Costco twice a year that helps pay the groceries.

It's also much more convenient. There are so many times that I need a cc because cash won't do. Just yesterday, when I flew to a neighbor island to tune some pianos, the airline would only accept a cc, for the $15 bagage fee. 

And last, I have "made" money, because a customer put the repairs, or even a tuning, on a cc because they didn't have their check book. I've had a brother who lives in New York, instead of sending me a check, and having to wait for it to clear, give me his cc to pay to have his sister's piano tuned as a gift, the nest day..

I'm sorry you had a problem. But accepting cc's is part of being a good business person. It's like not using the internet because of scammers.  Yes, it costs a few dollars, but so does using an ETD. It's convenient, it's fast, and it saves a lot of time. 

Just my 3 cents worth. (I'm cheap, but everything is more expensive in Hawaii)

Wim   

-----Original Message-----
From: Larry Fisher RPT <larry_fisher at pdxtuner.com>
To: pianotech <pianotech at ptg.org>
Sent: Thu, Jan 24, 2013 5:19 am
Subject: [pianotech] Credit Card Service providers - which one


Hi Jurgen,

I’ve heard good things about The Square as Wim has reported.  

I have had one experience with plastic.  It wasn’t good.  In 2005 I made the massive mistake of being part of a restaurant venture with a total trash talking fool.  A few months later I was left holding the bag and painfully lost lots of money.  A local processing company was paid off in full and I thought that was the end of it.  Central Processing has been calling me ever since to collect on a card processing machine that I paid off through the local processing company.  CP doesn’t have a good following on the web.  My story is repeated in lots of places by lots of people.  

It caused me to continue to take a strong stand on the idea of accepting plastic.  I don’t need to entice additional work by accepting plastic.  I can live nicely with out the perceived losses of not gaining the income from people that need to use their cards so that they can get the points so they can get something made poorly for free or dirt cheap.  In short, I’m supporting someone else’s spending plus a processing company by giving up a percentage of my income  .....  and then there’s the additional bookkeeping.  If that’s not enough, there’s the CP factor that endures the ages.  I’ll pass.   

Just my dollar two thirty eight.

Good luck with your search.

Lar

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