Debit & Credit Card Machines

wcc · 01-21-2010, 06:58 PM

I've opened a small Ice Cream place and it's been cash only so far. I don't have the internet right now either. But summer is coming so I'd like to add a Debit & CC machine as that's 'todays' cash. Where are you guys getting it from and what are the fees? Basically where is the BEST deal because I want to keep the costs to a minimum.

BTW I opened last fall and ONLY 4 people have walked away because of me not having it. Well one of them I gave a free sandwich to to pay me later and he came back with his whole office! That was well worth it!

JMH82SC · 01-21-2010, 07:21 PM

I have a friend in the processing business and from what I understand you only have something like 4 processors for credit cards and because of antitrust laws they have to support any third party who wants to be a third party processer. The third party processor makes a cut of every transaction and funny thing is banks and credit unions for the most part are third party processers. The processing company he worked for is RBS WorldPay (direct not third party) and he saved my step dad like $4500 a year in processing fees.

porsche4life · porsche4life's Garage

Check with your local banks... Some of them will give a deal on it....

wcc · 01-21-2010, 07:30 PM

Quote:

Originally Posted by porsche4life

Check with your local banks... Some of them will give a deal on it....

This is even a bigger twist on things. I called my bank and left a message for their sales guy and a stranger called about this but I was to busy to talk with him and made sure he had my number and to call me back. Neither has called me back in a few weeks an I've called and left them and a few more people messages and they NEVER call me back. This is very unusual because normally I can't get them to quit calling. That's why the post.....

JMH82SC · 01-21-2010, 07:34 PM

Banks are third party and not the best deal.

wcc · 01-21-2010, 07:39 PM

I've thought about Sam's club, Merchant Warehouse, GotMerchant, etc. But I need something very inexpensive as you can see my volume of Debit/CC purchases are very low. I wouldn't mind just a percent on the purchases an no monthly dues because it really wouldn't affect me at all. Is that even a possibility?

JMH82SC · 01-21-2010, 07:50 PM

I will ask my friend in the morning as he will be at the same networking event for our group. Everything you listed above is third party I believe. I know at one point he mentioned something about a low volume set up that you use a cell phone for processing. I'm not sure if he works FL only but if that is the case he could put you on the right track to find someone in your area.

krystar · 01-21-2010, 08:01 PM

the smaller the transaction, the more pricey it becomes for u. alot of small places won't do credit cards for transactions less than $10.

back in my ecommerce processing days, i remember the fee was $.30+3% of total per transaction with a monthly fee. and u need either a seperate phone line or some other connectivity. and not to mention the $200-$300 machine itself.

Don Plumley · Don Plumley's Garage

Costco has pretty good rates.

red-beard · red-beard's Garage

Quote:

Originally Posted by Don Plumley

Costco has pretty good rates.

I need to talk to Costco and Sams. We don't need to take credit cards in our business, but some companies now use "Purchase Cards" for anything under $10,000.

This is a double killer for me, since we try not to work projects under about $20,000 (5-10% margin), and the processing fees are about 25-50% of my profit. If we do take them, I'll have to add a 3% fee for credit cards...

jwhcars · 01-22-2010, 02:28 AM

If 4 people walked since last fall it cost you next to nothing. You are a small place keep a nice cash only sign posted and know where the closest ATM machine is located and give directions if needed.

on2wheels52 · on2wheels52's Garage

"If 4 people walked since last fall it cost you next to nothing. You are a small place keep a nice cash only sign posted and know where the closest ATM machine is located and give directions if needed."

That would be my advice also, although my business is different than yours. Every once in a while I'll take a look at an offer, it always looks too expensive and an unnecessary complication. I wouldn't kknow how many customers this has cost me to lose but there have been plenty more to take their place.
Jim

red-beard · red-beard's Garage

Here is an alternative. Find a company which puts in those ATM machines/ATM terminals and have one installed in the business. Instead of a loss (credit card fee), you will get a revenue stream when people use the ATM.

MBAtarga · 01-22-2010, 04:45 AM

red-beard's ATM machine suggestion
+1

wcc · 01-22-2010, 04:13 PM

That ATM thing is a great idea. I never thought of that! I'll look into it and see what I can come up with. The wife agreed with you guys and said don't waste your time and money on a CC/DC machine for just a small amount of people. Thanks for the ideas...

EarlyPorsche · 01-22-2010, 04:23 PM

If you give them the option of paying with CC then they will always use that option. The first thing I thought of when you posted was "He needs to install his own ATM." I "THINK" you can install your own ATM and you could even make it really cheap and put a sign on it like 7-11 does. Something like "1.00 ATM FEE" or something of the sort.

peppy · 04:37 PM

We use First Merchant

Fees
.20/swipe
.006% of sale
.33/batch settlement
I own the equipment
Data trans w/DSL

I looked at the Cash machines before I did the CC. The machines I saw had no money in them, I had to front the money and then the Co. that had the cash machine would put it in my account on the next business day. I could set the limit on how much they could get, but I could have easily had to front a couple of hundred dollars a day.

Rick Lee · Rick Lee's Garage

Have you also considered letting folks put candy vending machines in your store? It's not a lot of money, but it costs you nothing. Most businesses that sell guns online add 3% for cc transactions. And those deals probably average $500 per. Figure out what those four walk-aways cost you in lost business and see if you can get a cc processor for less than that. I doubt it.

djmcmath · 01-23-2010, 07:02 PM

Bill -- I'm glad to hear the business is a success! I remember reading a thread when you were looking at starting it and wishing I had the cajones to do that.

wcc · 01-25-2010, 05:26 PM

Quote:

Originally Posted by djmcmath

Bill -- I'm glad to hear the business is a success! I remember reading a thread when you were looking at starting it and wishing I had the cajones to do that.

I don't know if 'success' is quite the right word... I haven't left my full time job and my sales projections are quite a bit lower then expected. Of course I opened in November in Michigan, in a recession, right before the Holidays, and most think it's pretty much just ice cream. I'm at my normal job at 6am and get out 4:30pm to run around to stores for supplies etc and work the store till 7pm. I have a light dinner around 7:45-8 and spend an hour or two with the kids depending on how tired they are reading books, doing homework, playing, or going to their sporting events. Then I stay up till 10-11 doing paperwork or on Pelican.

I just keep telling myself that if I get through one more month the weather will turn around and things will be much better. It'll get there, wish me luck!