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

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.

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