Do you accept Credit Cards as payment??

EdCaffreyMS

EdCaffreyMS

"The Montana Bladesmith"
If you accept credit cards as payment, it appears that you will now have to shell out more money annually for doing so. Today I was talking with Steve Kelly on the phone and he mentioned that as of 15 March 2010, all indivuduals and businesses that accept credit cards must be "PCI Certified" or face additional monthly fees. Steve and I both have the same merchant vendor for accepting credit cards, so I called them to see what I could find out.
I was told that I would now be charged and additional $99 annually (no option), and if I am not "PCI certified" by March 15th, my monthly fees would increase by an additional $6.00 per month. When I questioned the $99 annual fee, I was told that the merchant vendor had to bring a third party into the process to ensure PCI compliance, which is were the $99 annual charge comes from, and that they are charging one of the lowest fees. The individual went on to say that some merchant vendors are charging as much as $250 annually on top of current customer fees because of the PCI compliance.

So, if you accept credit cards as a form of payment, I would suggest checking with your merchant vendor, and see what this fiasco is going to cost you. As would be expected, I got pretty angry, but what's a person to do?
I personally think this is just another use of a "scare tactic" to justify charging more to those who can least afford it. I'm still miffed about it, so I'll quit before I say something stupid.
 
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Nobody is better at making up fees than the credit card companies. Well, maybe the phone service.

That sucks. I'll have to check with my processor.
 
I did a LITTLE bit of research on the net about this PCI compliance thing, and the best I can tell, we have our wonderful President and Congress to thank for this one. I didn't dig really deep, but it appears that this was something, that was attached to something, that was attached to some bill, and it got passed..basically via scare tactics by the government saying that we have to better secure people's credit card information, so we create another entity to do that, and then charge the end user more for it.:mad:

I got an idea...how about making those idiots who keep having all the credit card info breeches pay for it? I guess we couldn't really do that...it would make far too much sense, and would not be fair (Sarcasm intended) :rolleyes:

No different than how it's going to cost use more to light our shops soon....I went looking for T12 florescent bulbs and fixtures a month or so ago, and was told that what they had on the shelves was it. Due to new government regulations on energy saving, within a year, those T12 bulbs and fixtures will no longer be available, which will force people to change to the "new" T8 bulbs, which of course require entire new fixtures. And as if it's a surprise, those fixtures and bulbs are 2-3X the cost of the T12 fixtures/bulbs that many of us use.
 
I just started working with Merchant Warehouse for credit card processing. I asked about these fees before signing up and was told they are only charging $59.00 annually and with rebate of $30.00. I have yet to see if they keep their word. These companies tack fees on that are not in the contract left and right.

I also read that certification should only be a one time good deal and you should not be charged annually, however it looks like the CC companies are trying to screw us the best they can!

If anyone decides to use Merchants Warehouse let me know because if you say I recommended them I get a bonus. They are listed as one of the Top 3 processing companies in the business. My account is under my wifes name, Hye Humiston. PM me if you want more details on the rates they gave me.

Thanks,
 
Cash is still King! Money order is Queen! Paypal is the joker! And Credit Card merchant accounts is the enemy!

I don't even take credit cards in my screenprinting business....yet. I do take Paypal on ebay sales though.

I may be wrong but I think it may revert back to the days when cash and checks were the only form of payment accepted. I know of several businesses around who are starting to charge a 4% processing fee for swiping a card. If it keeps up customers will stop using cards and either pay cash, check, or simply do without.

Can't happen too soon if you ask me! Unfortunately I figure I'm wrong. Oh well!

Craig
 
I agree that cash is king and a lot of knife collectors know that they can often negotiate a better deal when paying with cash. But with the internet and at knife shows you really need to be able to take plastic. I know that I have sold several knives at shows that I wouldn't have sold if I couldn't accept credit cards.

The fees can really add up though with credit cards and PayPal. It should be a flat rate instead of a percentage. It doesn't take any more effort to process a $1000 sale than it does a $1 sale but it's a $30-$40 difference in fees.

If PayPal or the credit processors find out that people charge extra for using them they can cancel the accounts.
 
Have you guys ever checked with your local bank. I accept creidt cards, but I only 25 dollars a year fee, and 3 percent on transactions. I had to buy a card reader last year, but other than that nothing else. I havent received anything about changes yet.
 
After talking with my merchant vendor this afternoon, I'd suggest checking on the fee issue. I made it a point to ask if this was an annual fee or a one time, and they clearly stated that it was indeed annual, and that all merchant vendors would be charging the fee annually.....just that there would be a difference in the amount charged from vendor to vendor.

My first, second, and third experiences with accepting credit cards were through local banks. Each one was wonderful.....for at least the first 6 months. Then they started tacking on fees, and the last local bank even changed the rules on me after 5 months.....I would have never known if I'd not kept an eye on the statements. I had not sold a knife via credit card for 3 months, and all of a sudden sold a "high dollar" knife and noticed that the bank had kept an unusually large portion of the money. When I went in to see what was going on, I was informed that they had changed their rules and that if I did not sell at least $1,000 per month via credit card, my "merchant discount" (the percentage they charge), went up each month I did not meet the minimum. By the time I caught it, that charge was at 7%!! Needless to say, I quit that bank right away.

This might be an unpopular thing to mention, but I believe that we as knifemakers/Business people are going to have to figure out how to deal with the increases....
Some businesses automatically tack on a $1 handling fee when shipping anything, others apply processing fees to credit card transactions, and still others do both. What I find strange is that by law, a merchant is not allowed to stipulate that anything is added to an item's cost when using a credit card as payment....but I even see it on state and federal websites now..... Montana's own Fish & Game website charges an extra fee for using a credit card online to purchase hunting/fishing licenses.
From what I understand, a business can charge a "processing fee" for using a credit card, but they cannot charge more for an item because a credit card is used....is it just me, or is that just semantics?

I have to agree with Mike and others. Cash is certainly still King, but after looking back at my last year's knife sales, nearly half were via credit card, and I can recall several major sales where the customer's first words were "Do you accept credit cards?" The majority of those customers breathed a sign of relief and told me that if I did not accept credit cards, they would not be able to buy the knife/knives they did.
I hate to say this, but I'm afraid that if a knifemaker doesn't accept credit cards in this day and age, they are missing out on a LOT of sales.
 
EdCaffreyMS said:
Some businesses automatically tack on a $1 handling fee when shipping anything, others apply processing fees to credit card transactions, and still others do both. What I find strange is that by law, a merchant is not allowed to stipulate that anything is added to an item's cost when using a credit card as payment....but I even see it on state and federal websites now..... Montana's own Fish & Game website charges an extra fee for using a credit card online to purchase hunting/fishing licenses.
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I believe the above situation is where your local city/county/state &/or federal agency have contracted with a third party vendor to furnish that service 'as a convenience' to the electorate and an effort to hold down the govt expenses . I live in Georgia and when I renew my car tags online, there is a 'processing fee' added to the total. The credit card processor, I believe, is located in California. Last year I bought an 'Out of State' fishing license to salt water fish in Florida. The processor was located in Virginia. Tain't nothing new... been going on for years.
 
My company has been dealing with this for several years. It's a credit card company initiative that is a real PIA to comply with, especially in an industry that historically breaks the rules all over the place. I don't think that the government has much of anything to do with it. On the other hand I'm not at all convinced that Visa, etc. think they are less important than mere governments :)
 
Thanks for that input Randy. I'd never thought of that...but it makes sense. I know for me it's always been a matter of hidden/additional fees and such seeming a little dishonest...and it just always rubbed me the wrong way. I guess the reason I have/do feel that way is because I have never been faced with it, until now. It means that I will either have to raise the price of a knife to cover the additional costs or will have to tack something on somewhere else to make up the difference. Just don't like being forced into a position like that.
 
Ed, are you still with Tanya on the credit cards? I haven't heard anything about this until now and it doesn't sound good.
 
I am still with her (Nationwide). I was talking to Steve Kelly on the phone today (Tanya is his neighbor) and I had not heard anything about it until then. Steve told me that he had received an email from Nationwide about it...I asked him to forward it to me. After talking with Steve, I called Nationwide to get more information. They did tell me that there would be full information in my next statement that should arrive "within the next 2-3 days" including the requirements for PCI compliance.

I actually took some time this evening to look at some other merchant vendors and simply cannot find another that will give me near the deal that I have now.
I checked out all of the one's listed here but they all charge more total fees and charges than what I'm paying now, and IF they are charging that PCI fee too (which is my understanding that they are), then I'd be worse off changing companies.
I might take the time tomorrow to call some of them and see what they have to tell me. But after the long search prior to going with Tanya/Nationwide, I'm skeptical that I will find a better deal for accepting credit cards.
 
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She certainly seemed to be the best deal and helped me get going (thanks for the contact info by the way). I guess I'll be getting the info too and see what needs to be done.
 
No different than how it's going to cost use more to light our shops soon....I went looking for T12 florescent bulbs and fixtures a month or so ago, and was told that what they had on the shelves was it. Due to new government regulations on energy saving, within a year, those T12 bulbs and fixtures will no longer be available, which will force people to change to the "new" T8 bulbs, which of course require entire new fixtures. And as if it's a surprise, those fixtures and bulbs are 2-3X the cost of the T12 fixtures/bulbs that many of us use.[/QUOTE]

I installed T8 bulbs in my shop, and they make the raido buzz. I spent two days moving the sterrio and antenna in different locations around the shop, grounding the lights better, nothing will work. I researched the problem and got no good answers. They just say "thats why most people are switching to satelite radio"
My contractor buddy said it was because I bought the lights from Home Depot and they are not the best. 2guns2guns
So now I have all these new lights in the celing and I don't even use them, I would rather listen to music.
 
Dave Jacobson said:
I installed T8 bulbs in my shop, and they make the raido buzz. I spent two days moving the sterrio and antenna in different locations around the shop, grounding the lights better, nothing will work. I researched the problem and got no good answers. They just say "thats why most people are switching to satelite radio"
My contractor buddy said it was because I bought the lights from Home Depot and they are not the best. 2guns2guns
So now I have all these new lights in the celing and I don't even use them, I would rather listen to music.
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you could wrap em in aluminum foil

6-7 layers should be plenty






















no, this is NOT a serious suggestion
 
is the opinion of a potential customer wanted?

if a knifemaker offer's me the service to pay via cc, either "online" or face to face at a show, i'm more then willing to accept an additional fee on the tableprice, or the price we agreed up on. it's the same with paypal, i always did, and always well eat the 4% they are charging. to me, it's a comfort being able to pay with my cc as i'm not bound to any limitations if it's directly processed - but if i need to get cash at the atm i'm stuck at a certain ammount at least for the next 7day's.

another way i like to use is a common bank-wire-transfer, common in europe, as it seems to me that especially vendors/knifemaker's from the us are very "afraid" to give out their bank-details (absolutely NO insult ...)

greetings,
olli
 
olli, welcome!

Thank you for your input. Always nice to hear from the perspective of potential customers instead of just talking with other makers/vendors.

The more I think about it, the more what you say makes sense. Most customers don't want to carry more than a few dollars change in their pocket, or they simply don't have it at the time but want to buy your product. By taking cards they are able to get what they want.

Guess I'll have to go get a merchant account for my business now! I'm still old school and don't accept credit cards even in my screenprinting business. Guess I'm gonna have to pony up and just do it.
 
Oliver Mendl said:
is the opinion of a potential customer wanted?

if a knifemaker offer's me the service to pay via cc, either "online" or face to face at a show, i'm more then willing to accept an additional fee on the tableprice, or the price we agreed up on. it's the same with paypal, i always did, and always well eat the 4% they are charging. to me, it's a comfort being able to pay with my cc as i'm not bound to any limitations if it's directly processed - but if i need to get cash at the atm i'm stuck at a certain ammount at least for the next 7day's.

another way i like to use is a common bank-wire-transfer, common in europe, as it seems to me that especially vendors/knifemaker's from the us are very "afraid" to give out their bank-details (absolutely NO insult ...)

greetings,
olli
Click to expand...

Thanks for your input and I wish more customers felt like you do.

However, technically vendors are not allowed to charge extra for processing credit cards or PayPal and the terms of their contracts. If the CC company finds out that they are doing it they can shut down the account. So sellers either have to eat 3% or else add to the price for everybody.

As for the wire transfers, I am in the group that is afraid to give out my bank details. There have been a lot of scams going around where knifemakers lost both their knife and their money to out-of-country scams.

I do think I have to take credit cards especially at shows but it is a pain to deal with. Setting up a website to accept credit cards is even more complicated.
 
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