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

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