A lot of businesses are already taking credit cards, but there seems to be a real lack of solid information and I find frequently that many business owners have a few common misconceptions about their processing and how it works. Its tough to get the facts these days with so many companies out there and they are all looking to get your business. Some merchants I talk to tell me about how they receive as many as 10 calls a week! Even when we go to start a new business we often get pitched right from the get go from the bank we do our checking with. One of the main purposes of this newsletter regarding those looking to accept credit cards as another means of payment from your customers is to help you get the information and tools necessary to help you effectively shop for a merchant account that is going to meet your needs and keep your costs low. The first step in this process is to understand what exactly merchant service companies and their agents do. Merchant service companies process your credit card transactions through their providers such as Visa, MasterCard., Discover, AMEX, etc. They also handle a number of services involving non-cash payments such as your equipment, check services, gift cards etc. When you sign up for a merchant account something to keep in mind is WHO am I paying? In most cases this would be the processing company, the credit card companies, and the person who signed you up. That’s right usually a portion of the money you pay goes into the pocket of an actual person. I've frequently found that most merchants do not know this or have never seen or heard of the person they are paying. Now If I go eat lunch some where I always leave a tip for my server. We do this, because we know that is what that person is going to make and we value the service they provided. If you have a merchant account and need consulting or run into a problem, you’re already paying somebody to continue to serve you so why shouldn't you know who they are and where to reach them? This is why I would love business owners to stop shopping for merchant services like they are buying a new car. If you know the particular make and model you want then by all means shop and get price quotes until you find the most rock bottom deal, because in the end you are still going to get the same car and the same quality product. With merchant services, the level of quality will vary from company to company so think about WHO am I paying and WHAT are they going to provide for my dollar? ...read more
By Midwest Merchant Association, LLC August 20, 2008
Welcome to the digital age. The giving patterns and methods of church members are quite different today than it was in years past. The economic world is also different. Our society is more affluent, mobile, and sophisticated. The implications for churches are numerous. Many members are accustomed to making purchases or payments by using their ATM, debit and credit cards. They are accustomed to the benefits of using their cards and have come to appreciate the usefulness and advantages. Many people are more likely to carry an ATM, debit or credit card than a checkbook or large amounts of cash. When special needs arise, a credit card is often more conducive for the emergency or non-anticipated expenses than is cash or a check. Many are also more comfortable making non-anticipated purchases (or donations) on a credit card than by check. It simply gives them the time to arrange to transfer funds or deposit money into their checking account to pay off their balance. Even with planned giving, there are times and circumstances that donors prefer to make their donation by using their credit card. It can allow them up to two months to transfer the funds particularly, at the end of the year when tax deductions are most desirable. Donations can be made and receipted in one year while postponing the actual payment until the next. This can be of great benefit to many self employed professionals and business owners whose cash flow decreases during the end of the year holidays. It is these same individuals who are often able to make larger donations to their churches. In churches that have started utilizing credit card donations, some experience increased donations beyond what they had been receiving. This is true not only for tax deductions, but also due to the benefits that many card holders have come to enjoy, such as frequent flyer miles and rebate programs. Others appreciate the personal accounting ease of credit cards. There are cash flow issues that many churches struggle with. Sometimes the bumps in the cash path can be smoothed out by members who are willing to make reoccurring credit card donations, even if business takes them out of town and away from their home church for periods of time. Others are willing to make non-routine credit card donations at the time of church need and can then work out their own personal finances after the fact. Many church members appreciate having the option of making their charitable and church donations by either, ATM, debit or credit card. As a participating church, you are simply offering your members more choices and providing additional menu items for their method of payment. Debit and credit card donations are not for every member of the church, but when used wisely the benefits are significant not only for the members, but also to the church. ...read more
By Midwest Merchant Association, LLC October 27, 2007
Making the decision to sell one's stocks can be very confusing if one is a novice. There are a number of factors that should be considered when selling stocks, such as what price one should sell the stocks for and when is a good time to put them on the market. ...read more