Why are you still using PayPal?

This morning, I had the privilege of talking to a leading business magazine about merchant credit card processing and interchange rates. In preparation for this interview, I did some in-depth research on PayPal, one of the internet's most widely used method of accepting credit card payments.

In the event that you've lived under a rock for the past decade, PayPal is a website that allows consumers to send and receive money via credit card or electronic check (e-Check). Largely due to their partnership with eBay, PayPal's brand recognition makes it a "go to" site for processing these types of payments.

As an eBay Power Seller in the late 1990s, I used PayPal to accept credit cards from my customers. In fact, until I actually became affiliated with a merchant processing company, I recommended PayPal to people who asked me about accepting payment cards. Today, I am officially rescinding my endorsement of PayPal. Here's why:

Exorbitant processing fees: Let me lay it on the line for you. If you are using PayPal to accept payments through your website using their "Web Payments Standard" option, you will be paying 2.9% of the transaction value plus 30 cents. Of this amount, 1.6325% plus 10 cents of the transaction value goes to Visa/Mastercard (called " interchange"). The other 1.2675% plus 20 cents goes directly to PayPal as a service fee for them to help you move the money from bank to bank.* Ok, maybe that doesn't seem like a lot to pay for convenience, right? But the truth is that PayPal's fees are double what you should be paying. No matter which of their merchant services solutions you use, no matter what your monthly transaction volume totals, no matter whether you use PayPal on your website or send email invoices, if you are using PayPal you are paying too much for merchant services.

Rolling Reserves: This subject came up in my media interview today. I was surprised to learn that "rolling reserves" are now a chief complaint of users of PayPal Merchant Services, mostly because we have never imposed one on a client. A rolling reserve is a contractual stipulation imposed on some merchant accounts, more often than not these accounts are determined "high risk." In this case, PayPal is withholding funds--sometimes 5% of a merchant's gross sales--in a non-interest bearing account for 18 months. So if you use PayPal, and you are bound by a rolling reserve, you will be missing out on 7.9%+ revenue (interchange+PayPal fees+rolling reserve) from credit and debit cards for a year and a half. Now, maybe I'm a dummy, but this just seems ludicrous. Which leads me to my next argument

Wait times: With a run-of-the-mill merchant processor, you can basically assume that funds from your credit card sales will be deposited into your bank account within 48 hours (and very often it is closer to 24 hours). PayPal, on the other hand, holds the funds you receive from these payments until you to transfer them to your bank account, a process that takes 3-5 days. So if you get paid $40 on Monday, it will appear in your PayPal account and be ready for transfer by Tuesday, but it will likely be the following Monday before you have access to these funds. There is an exception, it is their "PayPal Debit Card," which allows you to have "instant" access to your PayPal funds (once they are approved), and you can use it for purchases or to remove cash at an ATM (after setting up a pin). Please note that if you use an ATM, you *may* be charged...you guessed it...more fees.

Customer Service: Sure, PayPal has a 1-800 number and at some point you may actually get to talk to a human. But, and this is just my simple way of thinking, the most important trust relationships in a merchant's business life should be with their banker, and their merchant processor. Your merchant processor should know you, your family, your business model, and your business goals and should be dedicated to helping you reach them at any cost.

So why does PayPal have such worldwide acceptance when they have such shady processing practices? Brand recognition is part of the answer. The other part is that merchants simply aren't educated enough about their options. PayPal underwrites an extraordinarily high number of high-risk merchant accounts (which partly explains why their fees are so much higher). As such, merchants who think that they may have a problem being approved for a merchant account through another processor (whether it is because they are a new business or have less-than-exceptional credit), go directly to PayPal without exploring other options. Don't fall into this trap. There is a better processor, with better rates and better customer service. PayPal does not offer any service that is unique, they are just really well marketed.

As you should know by now, I don't make it a habit to "call out" the competition by name, but today I've made an exception in the name of good ethics in the merchant processing industry, and the hope of helping businesses save money and get the treatment they deserve.

Do you still use PayPal? Tell me why (I don't bite). Anybody else ready for a cup of tea? You can always find me on Twitter @AmySwipeRite

The Great Transition

I’ve been “off the grid” for the past week or so as our household has been “in transition.” I’m not sure if it shows great faith or great insanity to make sudden business changes with a large family to support. Maybe it’s a little of both. Nevertheless, last week, our company amicably separated from our business partners because we realized that what we set out to do just couldn’t be done as long as that partnership continued.

Here’s where things get exciting. Through the formation of our new, independent agency Diversified Payments Group(TM), we are now able to offer a host of new products and services that will actually make a difference to our clients. The response to these new options has already been overwhelmingly positive. We now offer:

-Back office electronic check conversion: If you own a business, it is quite possible that you no longer accept checks at all given the complications with returned drafts and collection procedures. You’re probably familiar with electronic check conversion, a few national chains now process your check and hand it back to you at the register, you sign a copy of a receipt that says you understand that your transaction is processed electronically. But for small businesses, implementing “point of sale electronic check conversion” has been out of reach. For starters, it is expensive. Every register must be equipped with the proper processing terminal, and each cashier must undergo training on how to process a transaction, and how to educate the customer on the conversion process. Back office electronic conversion is the solution for small businesses. You still get the security of electronic check conversion, but rather than processing check payments at the register, the checks are collected and processed together by the back office staff--the manager or bookkeeper, or whomever is responsible for making bank deposits. Whether a business processes 10 checks a day or 200, they only need ONE processing terminal, and ONE employee educated on how to use it. What’s better? Every check is guaranteed by our company. Every. Single. Check. You will never again have to handle collections, or worry about “bad checks” impacting your bottom line.

-Smart customer loyalty programs: There are loyalty programs, and then there are smart loyalty programs. The difference is that a smart loyalty program will retain vital information that teaches business owners about their clients’ spending habits, preferences and contact data. This is not another loyalty card that takes up space in a wallet. This is a comprehensive program that allows you to keep a finger on the pulse of your most valuable customers. We give you all the information you need, and we’ll even give you tips on how to use this information to build your relationships with your customers.

Of course, some things about our business didn’t need to be changed. We are still leading the way in low-rate merchant credit card processing. There have been a lot of phrases tossed around in the news lately, convenience stores have gone a long way to get action from Congress to lower the rates charged by Visa and Mastercard. We applaud those efforts and hope that Congress takes action. Our low processing rates will save businesses money now, regardless of what happens on Capitol Hill.

Questions about electronic check conversion? What’s your favorite “convenience store” product? Tell me here: @AmySwipeRite

Oh, and to appease those who love the legalese, Swipe-Rite, Diversified Payments Group, SaveSome and SaveSome Solutions are all registered Trademarks of SGM Media, LLC.

Are you doing business with people who do good business?

I remember my parents telling me that I should be careful which friends I chose because I didn't want to be presumed "guilty by association." While I'm sure this was just their effort to keep me away from flunkies and junkies in high school, it's an idea that has stuck with me into my adult life and interaction with businesses--large and small.

It's easy for "socially-aware" types to steer clear of brands or businesses that are operating sweat-shops in third world countries. Don't like the fact that a snack food company is dumping waste into the surrounding water supply? That's easy, just stop buying their product. But what if a business's injustices are on a much smaller (in terms of the attention given to them) scale? What if, say, Bob's Pizza Parlor* had under-age kids making crust at night? Or Dan's Used Cars* wasn't paying proper commissions on sales, or refused to offer health benefits to their employees? How would you know? And would you change the way you do business with them if you did?

This question has been on my mind a lot lately as I think about our product suppliers, and about the accounts our company seeks. As our brand grows and evolves, I am increasingly concerned about the business ethics of our business partners.

When I was a college student at the University of Arizona, our school faced an onslaught of bad press over our partnership with Nike. Nike was under fire for using Asian sweatshops to manufacture their products. Arizona received especially bad press because that same year (1997), our basketball team became National Champions. More than 12 years later, a "Google" search of "Nike and The University of Arizona" begets an article about schools who are "Hooked on Sweatshops." The reputations of Nike, and the universities who partnered with them, are forever tainted as the result of this controversy.

Luckily for them, all the parties involved were large entities with great PR representatives and teams of attorneys. They were not undone by their "bad business" mistakes. But when you are at the helm of a start-up, perceived guilt by association can result in demise.

So how do you know if you're doing business with people who do good business? I want to know your tactics. Share them below, or find me on Twitter.

The value of social media for the merchant processing industry

For the past 6 months, I have been experimenting with social media for the merchant processor Swipe-Rite/SaveSome Solutions in Cedar Rapids, Iowa. I started this campaign because the sales staff was growing really tired of cold calling businesses, trying to peddle low-rate merchant credit card processing and customer loyalty programs, and having doors closed in their faces no matter how great the products and the sales pitches.

It quickly became obvious to me that there were two things happening. In some cases, the businesses that Swipe-Rite's sales staff was targeting were just not interested in saving money on merchant credit card processing. These businesses have just sort of accepted that paying a percentage of their sales revenue to a processor is a necessary evil. They don’t understand the statements they receive each month, they just deduct the fees from their profit margin, and move forward. I can understand this approach. As an eBay Power Seller in the early days, I used PayPal to process credit card payments without even considering the cut they were making from my sales. My sales increased if I accepted credit cards, as did the amount people were willing to spend on my items, and I went along with the fees because I saw the benefits as outweighing the cost. I also, frankly, didn’t know any better, and didn’t have the time to learn.

The second scenario, less frequent than the first, was that some businesses actually had a relationship with their merchant processor. These businesses used small processors (like Swipe- Rite), and relied on the fact that they could reach the person managing their credit card revenue without using a 1800 number and an extension. To these businesses, it doesn’t matter much if they pay a half percent more than they would with a larger company, they remain loyal because they trust the people managing their account.

I analyzed these two situations, and realized that to be competitive in this industry, a cost-effective solution must be found. It is necessary to offer great products at a low price, and it is more important to develop relationships with potential clients and effectively market the products we stand behind.

Here is where the real value of social media emerges. By using this blog to provide information (not sales pitches), and using Twitter to interact with social media experts, small business owners, small business owners, community organizers, comedians (and the list continues…), I have been able to introduce our business to an audience by giving them an inside look at who we are as individuals. This audience knows that I have children, that balancing work and home life is a daily part of my life, and that I really love to help small businesses save money. But they also know what I do: I Blog and Tweet about the Merchant Processing Industry and about Customer Loyalty Programs, and specifically about Swipe-Rite, the business I represent.

Maybe this doesn’t translate to instant sales increases, or more traffic on our eBay store…yet. But what I have accomplished, in a very short period of time, is to put a face on a business, and an industry, that really needed a boost of integrity during a period of time when the words “bank” and “credit cards” have become vulgar terms. And it hasn’t cost a dime, because the use of social media forums like Blogger, Twitter and Facebook is FREE.

So now I am challenging myself to go a step further. I have never believed that “competition” is synonymous with “enemy.” Therefore, I am making it my goal to reach out to other Merchant Processors to encourage them to put a face on their businesses, to make themselves accessible and transparent. It’s only scary for those companies who have something to hide. More trust = more business for your company and for mine. We will all benefit from a new image. What do you have to lose?

Ready to take the challenge? Tell me here @AmySwipeRite

I recently interacted with “The Brand Builder,“ Olivier Blanchard on his great slide show (clickable link) that really shows how to measure social media’s “ROI” (Return On Influence). Watch it, share it with the rest of your company, and let’s get started with our revolution.

Why trust is so important when it comes to who handles your credit card processing

Maybe this is a blog post that sounds the "Obvious" alarms, but our recent research shows that far too few businesses use "trust" in a sentence that describes their relationship with their merchant credit card processor.

What's even more disturbing is that despite this lack of trust, businesses are largely unwilling to change who is handling their processing.

If either of these statements accurately describe your business, keep reading.

It doesn't take a rocket scientist to figure out that whomever is handling your merchant processing has the ability to impact your bottom line. Directly. Once a customer presents a credit card to you for payment, you are only paid "in theory" until your processor deposits that money into your bank account. Some processing companies can take days, even weeks, to pay you what you are owed.

Let's think about this in terms of inventory. You are the proud owner of Joe's Fine Lumber. Sam comes in, buys your last 5 sheets of plywood to build his deck. He pays with a credit card, which you happily accept. You need to reorder plywood, especially since you know Sam will probably be back in a day or two when his wife decides she wants the deck "just a tad bigger." But times are tough, business is slower than usual, and you will need access to the money Sam paid before you can call your supplier. Only, the money isn't in your account. It's in the digital space between your processor and you. A day or two goes by, Sam returns for more plywood. Only you don't have it to sell. Sam goes to another store, and maybe he starts to think "Gee, Joe is short on supply more frequently these days. Maybe going to the 'big box' store for my lumber is a better idea." He tells a friend, who tells a friend, and it's only a matter of time before Joe's Fine Lumber is a nostalgic memory.

So you see, it's simple: Your money is your livelihood, for yourself, your family, your employees and your business. The relationship you have with those who help manage your money should be the closest of your business partnerships. You should know more about them than just their 1800 number. You should know their cell phone numbers, you should know that their kids play baseball, or (as in my case), that their 2-year-old daughter is affectionately dubbed the "nose-breaker" after an unfortunate Labor Day Weekend head-butt.

Do you know how many kids your account manager has? What do they do in their spare time? I want to know what you know about your merchant processor. Comment below, or find me on Twitter @AmySwipeRite

Getting to know the competition...

In keeping my promise to "re-paint" this Blog's purpose in helping our business, I am getting to know the competition.

I have searched websites, I have read contractual terms and rate quotes for other merchant credit card processors. I understand the competition in industry language. What I really want, however, is to get to know the competition through your eyes.

This isn't a marketing ploy. You won't be inundated with emails or phone calls or direct marketing letters telling you that our products are better (even if they are). I just genuinely want to know what it is about your merchant credit card processor, customer loyalty provider or ATM service company that makes them most valuable to you. You can even comment anonymously- in fact, I encourage that approach.

You see, I don't believe that companies get better by picking up someone else's disgruntled customers. Companies get better by admiring what others do well, and looking for ways to take it to the next level.

So tell me, who do you use for Merchant Credit Card Processing, and why? Do you have a customer loyalty program? If so, what makes it work for you? Does your business have an ATM? Tell me how it has helped you.

Today's photo credit goes to the talented Jim Rogash for Getty Images, and this blog entry is dedicated to the incomparable Tedy Bruschi, who always knows his competition. Thanks for the memories, Tedy, best of luck to you, Heidi, and the boys!

Want to talk about football? I do! Reach me here @AmySwipeRite

What a difference some paint makes

This past week, we were lucky to have who I call “The Grandparent Reinforcements” visiting us from out-of-town. I took the week off from blogging and social media so I could spend time entertaining them, and preparing our oldest two children for their first day of school.

Once the “big kids” were off to school, I decided to tackle the household revitalization projects I have been avoiding for months. With two extra sets of hands at my disposal, away we went with paint rollers and brushes, and a fabulously bold shade of green (called “Ferndale“).

I was nervous to go with such a strong color on the walls, but the size of the great room, and fabulous windows, made me think that it could handle the transformation from stark-white to rich green. I was right. This gamble paid off, and I couldn’t be happier with the outcome. It’s the same room, same furniture, same wall hangings- but a totally new space thanks to a very simple fine tuning of the room’s foundation…it’s walls.

I started to think about how this applies to our business. What can we change, at the foundation, that would make a positive difference? How can we transform and improve our basic structure, without disrupting the details?

My meditation on this has given me several good ideas that will start with a change to this Blog. I have called upon some of our customers to write “guest” blogs that will appear in this space, telling you how our services have helped them. I even encouraged them to comment on any snafus they encountered, and how they were fixed.

I am also taking down every listing on our eBay Store, editing them line-by-line, and finding every way possible to cut product costs down as far as they will go. This has already begun, with our Verifone VX510 Point of Sale Terminal being sold for $1 (regularly listed for $195). I should note that 100% of the $1 item fee will be directly donated to the American Red Cross.

Finally, I am working on learning the languages of the business owners who I so genuinely want to help. I’m going to tell you a story each week about how our product works, in terms you can understand.

I hope these alterations will bring about positive change, making it easier than ever to work with Swipe-Rite. What a difference some paint makes.

Have you made a change recently? What color are YOUR walls? Tell me here @AmySwipeRite

No, this is not a paid endorsement. This is a completely willful shameless plug.

It just occurred to me that although I have used first-person references in this blog, I have never really identified myself to this audience. Hi. I'm Amy Fitch. I am a Mom of 4 little redheads (5 if you count their father, 6 if you count our dog--yes, they ALL have red hair). A little more than two years ago, the man in my life had what I now call "The Big Idea." He wanted to help small businesses flourish in an environment that was dominated by "big box" stores. A "former" journalist, I started out doing our Press Releases and writing the text for our website and printed marketing materials. Then, I heard about this thing called Twitter. That's when I discovered Chris Brogan.

Just six months ago, all I knew of Chris Brogan was that his post was the top result when I Googled "ways to use Twitter for business." I started to "follow" him on Twitter. And suddenly, I had a Big Idea. His posts, his daily interaction and his sheer accessibility on Twitter inspired me to make our small Merchant Processing and Customer Loyalty Business into an "all access" show. In an industry synonymous with "credit cards" and "banks," we surely needed a PR boost. What if I attempted to gain the trust of our colleagues and customers and everyone on earth who ever had a question about Merchant Credit Card Processing or Customer Loyalty Programs, by humanizing our business?

Now, I am admittedly new at this. I am still learning and I'm certain that I'm not yet completely "doing it right," but just as with Yoga, I am committed to the practice. I genuinely want to help small businesses. So today, I am giving the best advice I can possibly give: Buy the book Trust Agents. The Authors, Chris Brogan and Julien Smith, are the experts at "Using the Web to Build Influence, Improve Reputation, and Earn Trust." In fact, I dare say that their ideas are what makes Twitter at all useful to businesses (of any size).

If you want to know how the web should be used to help your business, Buy the book, you won't be sorry. For good measure, join their discussion on FaceBook. Trust me. You'll be so glad you did.

Want to talk about Trust Agents, or anything else? Find me here @AmySwipeRite

Loyalty isn't just for dogs

Loyalty. We use this word freely when we discuss concepts like love and marriage. We show loyalty to our "home teams," and to our employers. We boast about how loyal our dogs are to our family. But how does loyalty affect the way we shop or do business?

My car battery died recently. My neighbor helped get the car "jump-started," and when I mentioned that it was probably just time for a new battery altogether, he suggested a mechanic around the corner. He made it abundantly clear that this mechanic was not the cheapest or the fastest in town, "but he always gives it to you straight, and when he fixes something, you can bet it's fixed," my neighbor added. This mechanic created a loyal customer in my neighbor through the most uncanny method-- by building trust.

My guess is that these trust relationships are what fosters customer loyalty in most people. I shop at Hy-Vee for groceries because I know their meat is top quality, their produce is always fresh, and they allow me to "drive up" for my groceries (especially great when I have the kids in tow). I have another friend who only wears Nike Brand shoes, after an unfortunate incident with a pair of Adidas sneakers more than 20 years ago...whe she was 8 years old.

In this volatile economic sea, small businesses are relying on loyalty more than ever, just to stay afloat. As an industry trendsetter in customer loyalty programs, Swipe-Rite and SaveSome Solutions can help your business develop a "smart" loyalty program that will help attract and retain customers now, and evolve to meet your customer needs as your business grows.

We believe that creating trustworthy relationships with your customer base is the best way to ensure the strength of your business. Why? Because we have seen it work by applying the principal of "trust" to our own business.

How is your business fostering trust and loyalty? Tell me: @AmySwipeRite

Let us show you how we can help your business today (877) 465-8033

In Iowa, the corn is always sweeter

A little variation this week, in honor of Iowa's signature crop.

It's corn harvest time in Iowa, and little stands are popping up on every corner. I bought our first helping of Iowa corn this week, and could hardly wait to get it home.

Having grown up in Tucson, Arizona-land of arid desertion, I am in complete amazement every time I see a corn field. I must sound like a broken record, pointing out my car window like a tourist telling the kids "look at that field, look at that barn, WOW!" Each field is so meticulously manicured, a point of pride amongst Iowa farmers.

But who has the sweetest corn? I dared to ask that very question of a native Iowan in my pursuit for the best corn in the Cedar Rapids area. The response, short and sweet- "In Iowa, all the corn is the sweetest." This "all for one" attitude is very indicative of the Iowa mentality.

With this in mind, I stopped at three different stands, buying a half dozen ears at each. At home, I shucked two ears from each bag, and prepared them all the same way (boiled and topped with butter and Cookie's Seasoning). My Iowan friend was right- all the corn in Iowa is sweet. This fabulous feast reminded me that I am truly blessed to call this land of bounty "home." Whether you are growing a business, growing a family, or growing corn-there is no better place to be than Iowa.

Where do you buy Iowa corn? Have a favorite recipe? I want to hear from you! @AmySwipeRite

Golf clubs on sale, aisle 10

Last week, I posted a link to our affiliate site SaveSome Solutions. There, we have compiled in-depth merchant credit card processing information in our "education center." The information is second-to-none, I assure you. But what if you are like me-and just don't have time to read all that stuff? If you fall into the category of "too busy to learn the intricacies of merchant accounts" you are not alone. In fact, other Merchant Processors count on those of us who can't speak their coded language, and don't have time to learn. So to make it a little easier, I have summed it up--in layman's terms--and illustrated my point with golf clubs.

"Interchange" is what Visa/Mastercard charges a merchant, aka, a business owner, to move money from a customer's account to their own when a purchase is made. If you are a shopper, you should know that when you use your debit card to buy those great golf clubs from Dick's Sporting Goods for $199, Dick's has to give a percentage of that straight to Visa/Mastercard (1.1225% + a .15 cent transaction fee for those of you who like math).
As if that weren't enough, Dick's also has to give a kick-back to the company...known as a Merchant Processor...who works as an intermediary. Remember the old movies where Sue calls Randy, but first she has to call the operator and ask to be connected? A merchant processor is essentially that; an operator, and we need to get paid for our services too. Which means Dick's is responsible for that fee as well. Let's say Dick's uses one of the many greedy Merchant Processors to make the connection when they "call" Visa/Mastercard. Dick's could end up paying an additional 3 or even 4% MORE in "batch fees," "authorization fees," "statement fees," "Executive car-wash fees..." and the list goes on. And if the golf club buyer wants to use a credit card, one where he/she earns rewards or cash back on purchases--Dick's pays even MORE to the Merchant Processor. Each fee, each seemingly little charge, reduces the profit Dick's makes on those golf clubs.

But Dick's can't afford to reduce profit margins by 4-5% and expect to stay in business, right? So they have no choice but to pass this on to the shopper. Sure, the golf clubs are a steal at $199, but in this day and age-wouldn't it be great to get them cheaper? Wouldn't it be great if Dick's used Swipe-Rite for Merchant Processing, took advantage of our "Fee Free" Interchange-Plus pricing, and passed the savings along to their loyal customers?
Swipe-Rite specializes in the transparent structure of Interchange-Plus, also known as "cost-plus" pricing. That means that instead of paying exorbitant fees, the rates of which are impacted by (seemingly) everything from the weather to the time of day, Dick's (and every other merchant) would pay a single, low flat-rate no matter what. There are no monthly minimums, no batch/authorization or swipe fees, and we pay for our own car washes (company consensus is that Guppy's Auto Spa in Cedar Rapids is our favorite).
If Dick's Sporting Goods used Swipe-Rite, those golf clubs could go on sale. Dick's would increase their bottom line and their customer flow. And the proud new golf-club owner could afford golf lessons, to boot.

Interested in learning more? I love to answer questions, ask me here: @AmySwipeRite

Your high school guidance counselor was right: Education pays

In these revolutionary "days of Googling," where the answers to most of life's questions are only a few keystrokes away, you'd think it would be easy to get the truth about Merchant Credit Card Processing. Unfortunately, there are many well-lined pockets in the industry who prevent the really important information from being discovered. Through our valued affiliate SaveSome Solutions, we are able to offer this revolutionary "Education Center," specifically designed to teach small business owners (and whomever else is interested) about the process of Merchant Credit Card Processing. It's simple: If you have ever used a credit or debit card, if you have ever sold anything and accepted credit or debit cards as payment, whether online or in person-you need to know this information. Why? Because becoming an educated shopper and merchant SAVES YOU MONEY. So cast aside those days of teenage rebellion and give in to the advice of your high school guidance counselor: Educate yourself- it pays.

How do you save money? I want to know! @AmySwipeRite

What I gained, by losing everything

In June of 2007, I was preparing to move into a new home. All of the household belongings my family and I had collected over more than a decade’s time were temporarily stored in an off-site storage facility. I chose one that advertised “24 hour camera surveillance,” thinking that my “stuff” would be safer if it were constantly being watched. Alas, I was wrong. A few days before the move, I went to assess the contents of my storage unit. As I drove through the gate and toward my unit, I started to notice little “Lincoln Logs” on the pavement in front of me. “Funny,” I thought, “those look just like the one’s from the kids’ rooms.” Suddenly, instinctively, I glanced toward my unit door to find the lock was gone. Every material thing I owned was inside…(including, but not limited to, couches, entertainment armoires, dressers full of kids’ clothes, dishes, pots and pans, family photos and videos, even my late Grandfather’s ashes); And now it was gone. Stolen.

So I called the owners of the facility and said “I have been burglarized, can you please review the security tapes.” The knowledge that someone obviously would be caught and I might be led to, at the very least, my home movies and other “priceless” mementos was the only thing that kept me thinking clearly in this moment of shock. To my horror, the owner, quite without empathy, said “Oh, those? Well, the cameras haven’t been working for months. They broke, and we just never replaced them.”

Rather than get into the legalities surrounding this, or the deluded way that home owner’s insurance policies cover (or rather, don‘t cover) “off-site” belongings, let me make a long story short: Nothing, not a single bit of what was lost, has ever been replaced. From that day on, it has been a process of starting over from scratch, buying a little at a time, and never getting attached to any “things.”

And, although I was not personally affected by the Cedar River Flood of June, 2008, I feel a certain camaraderie with those who were. I, too, know what it is like to lose things you worked so hard to earn. This is why I relish working for a company who is helping Cedar Rapids and the surrounding community rebuild, by helping small businesses reduce operating costs and generate additional revenue through the goods and services we provide.

What I gained by losing everything is what the City of Cedar Rapids has known all along: Appreciation is paramount. The residents of this city understand it so well, in fact, that “Appreciation” is the so-called “Fifth-Season” in the appropriately dubbed “City of Five Seasons.” What a wonderful place to live.

What do you appreciate? Tell me here @AmySwipeRite

5 Better Ways to Spend $100

Assuming you are a relatively small business (doing around $5000 in credit card sales per month) , you could be overpaying in Merchant Processing Fees by $100 (or more) every month. Maybe in the grand scheme of things, that doesn’t seem like a lot of money. Here are 5 better ways to spend the money you can save by switching to Swipe-Rite:

1. Buy a Goat. Okay, I concede that sounds a bit ridiculous. Before images of an out-of-control animal eating your herb garden enter your head, let me explain. PositivelyAfrica.Com offers “goats” for $100. The website states: “These goats are for AIDS Orphans in Zimbabwe….The goats provide a source of pride, milk (protein) and income in a country where unemployment soars over 90%.”

2. Save it. This may be an obvious answer, but I really like Suze Orman’s “SaveYourself” plan with Ameritrade (www.saveyourself.com). Through Suze’s promotion, if you deposit $100 a month into a “Save Yourself” account for 12 consecutive months, TD Ameritrade will give you $100 in month 13. According to Suze (in a message to me via Twitter), "the rate for the SYA account- is about 15.5% just for that 1st yr if you put in $100 a month for 12 cons months u have $1300." What a great return, clearly well above the rates offered at most banks.

3. Match your savings with an additional $99, and buy a laptop. Through “One Laptop per Child” (http://laptop.org), $199 buys a laptop for a child in a developing country. Their website states “Most of the more than one billion children in the emerging world don’t have access to adequate education. The XO laptop is our answer to this crisis…Almost everywhere the XO goes, school attendance increases dramatically as children begin to open their minds and explore their own potential. One by one, a new generation is emerging with the power to change the world.”

4. Splurge on something. Have you had your eye on a really great ink pen that lets you write upside down and in zero gravity? Indulge your inner astronaut, just this once. It’s good for you! Just read this great article from the St. Petersburg Times, dated November 21, 1956 (http://tinyurl.com/nyvtj2). Writes the author “We all need to be foolish once in awhile- to buy a bit of perfume instead of a new broom.”

5. Buy the person who manages your company Blog a really great massage. Or a maid for a day. Or a year’s supply of ear plugs so she can work at home with better efficiency. Ok, so perhaps this isn’t the most “socially responsible” use of $100. And yes, I admit it is almost entirely selfish for me to throw this in at the very end. But hey, it’s still better than wasting money on inflated merchant processing fees.

How would you spend $100? Tell me here: @amyswiperite

Why We Tweet

First, let me stipulate that by “We” I don’t mean “We the People” or “We Americans.” I am talking specifically about why “We” at Swipe-Rite take part in “Tweeting.”

As a company, we are a Merchant Processing Service Provider, an ATM and Point of Sale Retailer, and a Customer Loyalty Solution Specialist. This industry, with its association with Credit Card Companies (because we provide a way to interface and accept credit card payments) and ATM Fees (yes, those nasty surcharges), can carry with it a sort of negative stigma. This is especially true in recent months as we hear the words “Bank Bail-Out” and “Frozen Credit Lines” repeated on our nightly newscasts. As a result, it has become evermore important for us to earn the trust of our clients.

So, when I approached our Fearless Leaders: Todd, (@ToddSwipeRite), Shannon (@ShanSwipeRite) and Mark (@MarkSwipeRite), about delving into the world of social media, I took my inspiration from Social Media Extraordinaire Chris Brogan (www.Chrisbrogan.com) who wrote “Talk to people because you like the people. Choose people that have something to do with your product, and then, ask them about THEM.” The importance of establishing relationships is, to us, more important than just getting down to business. We realize that trust requires transparency, and when our clients have spent years reading confusing Merchant Processing Statements, often with hidden charges and inflated rates, we had to set ourselves apart by being crystal clear in everything we do as a business. So I thought “What if we gave the world at large access to our lives, our thoughts, our daily events, our favorite music, our families and children and pets…24 hours a day, 7 days a week, on Twitter?” And so our little experiment in Social Media evolved.

Sure, you can read @JerrySwipeRite’s technical service feeds (which are also comedic genius), but you can also check in with Adam (@AdamSwipeRite) and Quintin (@QBSwipeRite), both former Army Rangers turned Sales Agents who share an even greater thing in common: the adventures of first-time fatherhood. And, of course, there’s me. (@AmySwipeRite) I am the most active “Tweeter,” which isn’t always an easy task. Why? Because I manage our eCommerce, Twitter, Facebook and Blog all from home while raising 4 children under the age of 10 (it is SO noisy here).

We Tweet so we can meet you, so we can get to know you, so we can continue to know you. If we have a product or service you need at some point, great; If not…that’s okay too. The important thing to us is that our company stands out as being one of integrity in an industry where trust has been so unfairly violated.

Swipe-Rite Press Release: Cedar Rapids-Based Company seeks to boost local economy by saving small businesses money

Swipe-Rite is the Premier Merchant Credit Card Processing Solution Provider for the Cedar Rapids, IA; Eastern Iowa and beyond. The company's Vice President of Business Development, Shannon Moore, is new to the Cedar Rapids area, having just moved here from Tulsa, Oklahoma. Shannon partnered his Tulsa-based customer loyalty business "SaveSome" with Cedar-Rapids-based
Swipe-Rite at the end of 2008. Says Shannon, "I grew up in a small town near Burlington, Vermont. There was always a great importance placed on local businesses, a trend that is really only now catching on around the nation. As the child of teachers-turned-entreprenuers, I have always understood how crucial it is for local businesses to have the advantages afforded to national chains...from advertising to buying power, to merchant credit card rates." Having seen much of the 2008 Flood covered on National Television Stations, Shannon was impressed with the perserverance of the people of Cedar Rapids and Eastern Iowa. "When the opportunity to live in Cedar Rapids and create a company that would assist the small businesses in their recovery efforts, I had to jump on it...people rarely get an opportunity to have their job intersect with their passion."

Swipe-Rite is now in full swing, making education their primary focus as they talk to area businesses about how to lower their Merchant Processing Rates. "95% of merchants don't know how to read their monthly processing statements, through no fault of their own. These statements are designed to hide fees. We set ourselves apart by being transparent. We show you our profit margin...if you think it is too high, let us know. We want to develop trust with businesses, not just increase our bottom line," Shannon offers.

Along with this focus on trustworthy business relationships, Swipe-Rite also seeks to offer impeccable customer service. They recently added a live Twitter Feed, giving customers access to all of their employees from Sales Agents to Social Media, to Jerry (@JerrySwipeRite), their comedic Technical Service and Installation Guru, whose Tweets are as funny as they are useful. When you read their Tweets, you might think of Swipe-Rite as Cedar Rapids' real-life version of "Dunder Mifflin." Even Shannon Tweets (@ShanSwipeRite). "To tell you the truth, I didn't know what I was doing at first, but I recently read that Social Media outlets like Twitter are considered 'the new handshake.' If it helps me humanize myself to potential clients, I am all for it. "

So far, Swipe-Rite has taken Cedar Rapids by storm, providing ATM income, Merchant Credit Card Processing savings, and Customer Loyalty options to many area businesses. "Stay tuned to our Blog and Twitter Feeds," Shannon adds "we have exciting things in store for Cedar Rapids Business Owners."

Small Businesses Looking to Save Money by Shopping for Lower Merchant Processing Rates

*When Yvonne Chu launched Kimera, her Brooklyn, N.Y.-based dress retailer, five years ago, setting up a system to accept her customers' credit cards was an afterthought. Already armed with a small business card from Capital One, she figured why not use the bank's credit card-processing services, too? "I needed it in a hurry," says Chu.

It took a few years, but Chu eventually realized she was leaving real money on the table. Today she uses a New York-based Merchant Processing Service, which charges her a base rate of 1.61% on each bill, plus 20 cents per card swipe. That's down from roughly 2% and 23 cents at Capital One. Says Chu: "Every little bit counts."*

Of all the demands of running a business, shopping for a competitive credit card processor might seem trivial. Yet a healthy dose of due diligence can go a long way.

Take, for instance, a 120-seat restaurant that does roughly $2 million a year in sales--80% of that on credit or debit cards. Shaving just 1.5 points off of those processing fees equates to savings of $24,000 a year.

In the case of Visa and Mastercard, when a credit card is swiped, the transaction gets relayed--via an intermediary--to the credit card company, which then sluices the funds to the merchant's bank account. That middleman charges the merchant a fee--2% to 5% of the sale--for the hookup; meanwhile, the processor pays a fee to the credit card company. (American Express puts the money right into merchants' accounts, charging them fees directly.)

Letting your bank handle credit card processing may seem convenient--but that convenience comes at a price. Using a the third-party service provider--such as Swipe-Rite, of Cedar Rapids, IA, is the cheapest way to go.

Rates are not the only thing to shop for when looking for the best credit card processing, however. Speed and service matter too. Swipe-Rite’s exceptional customer service and around the clock assistance on Twitter ensure that your questions will be answered immediately.

For small businesses, it is imperative that their credit card processor see them as a valuable customer, not just a series of numbers. Since Swipe-Rite is founded and run by a group of small business owners, we value the relationship we establish with our clients more than our own bottom line. We are committed to working with small businesses to create a solution that works.

For more information on how Swipe-Rite can help your business in the Cedar Rapids Metro area or beyond, Tweet us at www.twitter.com/swiperite, or call 877-465-8033.

*Partial Credit to Forbes Magazine Online Journal, Maureen Farrell, 2007

Company Profile

SwipeRite is the Premiere ATM and Point of Sale Terminal resource in the Cedar Rapids, IA Metro area. With the recent advent of our eBay Store, we can now reach customers on a global scale. As a Member Service Provider for RBS Worldpay, SwipeRite is also able to provide our customers with superior merchant credit card processing at the best rates in the industry. We set ourselves apart by educating our potential clients on the intricacies of the credit-card interchange rates and fees, breaking down the industry jargon and giving transparent rate quotes.

SwipeRite also provides exceptional customer service, from the impeccable knowledge of our in-house sales staff to the quick response of our equipment installation and technical service personnel. With our new “instant chat” on Twitter, anyone can read through customer service logs and get instant responses to Frequently Asked Questions; or, ask a new question and receive a prompt reply.

Above all, SwipeRite is dedicated to helping businesses make money through ATM revenue, and save money on merchant processing. We are a small business with great capability. We invite you to get to know us by taking part in our daily Twitter Chats. We don’t just want your business, we want your trust.

Questions? Call 877-465-8033

Email: sales@swiperite.com