Don’t Get “Squared” by Square Up

I am noticing more and more merchant using Square for processing their credit cards.  On the surface Square may seem like a good option and for some it maybe.  If you are just starting out and not sure how well your new business my take off and depending on what you are selling or services of your new business, perhaps it is a good option. For example, right now it is more of a hobby that a thriving business.  Square might be a good option. 

However consider the down side of Square.  In many cases the cost for processing credit cards can be higher with Square.  Because Square is an aggregator you have no true merchant account.  They refer to their customers as sellers.  When one opens an account, they take much of what one presents with little vetting or underwriting.  If they question later what you do or sell or how you sell it, all then without warning your money will be withheld.  Then the fun begins with getting help or having a conversation with a person.  Consider other service related issues.  See the example below:

By the way Square is losing money, Net Loss of $48 million - per page 13 4q 2015 letter to investors

If you want to have first class customer service, in most cases less cost than what Square, call us 727-916-7294

Is There Any Benefit Obtaining Your Merchant Processing Account Thru an Association?

The short answer is not always.  It dependents on how much the Acquire charges or not charges.  What is an Acquirer?  Read our earlier post on this subject. at the following link.  This is not to say other benefits from the “Association” are not good, I am only addressing the credit card processing.  I have talked to several businesses that belong to the “Association” and one of the many so called benefits is the lower cost of processing.  Many of these same merchants are very closed minded about considering another alternative.  The few I did get to see had good rates, but not as low as we offer.  Do yourself a favor, let us look at your processing statement and we will analysis it to let you know just how good of a deal you are receiving from your “Association”.  I am sure you will be glad you did.

If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294

Dirty Little Secret Of Equipment Leasing – Part Two $10,000 for a credit card terminal!

I have written about the many different ways the banks or Processing Companies can rip your business off taking hard earned money out of your pocket.  One of the worse in my opinion is leasing of credit card terminals.  When you lease a credit card terminal you are paying about four times of what it would cost you to buy the terminal out right.  Read more in my original post  at Dirty Little Secret Of Equipment Leasing

I bring this subject up again because a merchant I was dealing recently recently discovered a lease payment coming out of his bank account when he went to change his bank account.  As it turns out it was for from a lease that was started more than 10 years ago.  He was paying around $90 per month. That is around $10,000 for a credit card terminal!  Not sure why the business owner did not catch this before.  Or his accountant and / or bookkeeper did not notice or discover this payment all these years when they worked with his taxes and bank account?

Another situation for another business I came across, the merchant has one lease account / payment started two years ago, then a “new” rep came into the business around a year ago and added another lease account.  Why? Good question, the rep left the industry so we cannot ask her.  Keep in mind these two leases are with the same leasing company.  I was helping the merchant sort this out and was on the phone with the leasing company and I asked them the question, why did they let her have two leasing?  Did they do any due diligence?  Well let’s say they had no real answer to the question.

Again, to you a business owner, DO NOT LEASE.  READ BEFORE YOU SIGN! ASK QUESTIONS. KNOW WHO YOU ARE DEALING WITH.

 If you have any question about this, please feel free to contact us at  info@tampabaymerchantservices.com or call 727-916-7294

Visa & MasterCard Released October 2015 Interchange Updates

Just like in previous year the card association has updated or added some the interchange categories. See below.  This is all we could find that was changed.  What will almost certainly happen as in years past, many ISO and service providers will use this as a reason to charge you more.  With our interchange plus pricing arrangement, we do not charge you more for our processing.  Do you know how your processing company handles these changes?  

Miscellaneous Changes
• Business Standard transactions are now broken down into 3 categories based off of dollar amount.

MasterCard
New Categories
• Business Debit/Business Prepaid/Large Market-Healthcare (1.00% + $0.00)
• Business Debit/Business Prepaid/Large Market-Healthcare Maximum (0.00% + $5.00)

Maybe it is time to let us help you with a rate review.  Contact us today, to save for tomorrow.

Call 888-506-9225 option 103 or visit  www.tampabaymerchantservices.com

Everything Too Good To Be True CAN For A Short Time

Scrapped after one year:

http://www.paymenteye.com/2015/11/03/amazon-feels-the-squeeze-in-mpos-market/

Our thoughts on this:

Subsidized pricing might work for a short time, but not forever. This is way Visa and MC work! There's no secrets, no special rates or double secret Interchange. You either make money or you do not. You cannot get any work-around to the pricing that they charge. Square will be the next to increase rates (after IPO).

Call us today at 727-916-7294 option 103 or visit our website at www.tampabaymerchantservices.com if we can help

Gift Cards Are Gold For The Merchant

The holiday gift card season is here.

Each year, gift card sales go up by about 10% over the previous year. Ever wonder why the big restaurants have the promotion of purchase $100 gift card and receive an extra $20 gift card? Continue reading.

Over a billion dollars in gift cards have gone un-redeemed.

More than 10% of gift cards never get redeemed. That's great for a retail store or restaurant. You get the cash, but don't have the expense.

However, make sure you are following the gift card laws of your municipality. Even if not cashed, you have some legal obligations for un-redeemed gift cards.

For accounting purchases, a gift card is not counted as a sale until it is actually redeemed. The money you receive for selling a gift card becomes a liability until the gift card is exchanged for merchandise.

Nearly 85% of people between 25 to 34 years old are giving gift cards this year.

Only 40% of those over 65 will be giving gift cards. I'm in this group. Maybe that's why I don't like gift cards.

22% of those with a gift card make a purchase of an item that they would normally not purchase.

72% will spend more money in your business than the value of the gift card.

On average, gift card users spend 22% more money than the value of the gift card.

77% of all Americans have given out a gift card in the past year.

$25 is the most popular gift card denomination.

55% of those using gift cards need more than one trip to the store in order to redeem their gift card.

Read the statistics at: https://www.cardcash.com/gift-card-statistics/

For help with getting started on a gift card program call us at 888-506-9225 option 103 or visit
www.tampabaymerchantservices.com

Why Can’t I Get a Small Business Loan from a Bank?

Having trouble getting financing from a bank? You’re not alone. So far in 2015, big banks have approved only 21.7% of small business loans. Despite a recovering economy and an increasing demand for small business credit, banks have become less and less inclined to lend to small businesses.

But why? The answer isn’t as simple as low credit scores. While it’s true that small business owner credit scores are still suffering from the effects of the Recession, other factors are at play as to why banks are suddenly shunning small to medium sized businesses from their portfolios. Let’s take a look at some of them:

Riskier: Small businesses are riskier lending propositions than larger businesses for a variety reasons. For one, small businesses are more sensitive to the ebbs and flows of the economy. Because big businesses are generally more self-sustainable than small ones, larger businesses can weather a dip in the economy. However, any prolonged economic downturn can have lasting consequences on a small business and may even cause them to default on a loan.

Decline of community banks: Historically, community banks have always been more willing to give microloans (generally loans of $50k or less), the amount that small businesses often seek. However, many of these banks have either been consolidated by big banks or have closed completely. According to the Federal Reserve Bank of Richmond, the number of community banks dropped 41% between 2007 and 2013, a bad sign for small business owners looking for loans.

Not as profitable for banks: Perhaps the biggest reason bank lending to small businesses has slowed down is that it’s just simply not as profitable for banks as it used to be. Lending to small businesses in the lower dollar range is too costly and risky for banks. For instance, the cost to process a $50k loan is comparable to a $500k loan, and with 51% of small business owners looking for loans below $100k, you can see the problem.

So with banks not lending to small businesses the way they used to, where can owners turn for small business credit?

We Can Help
We specialize working with small businesses by partnering with companies that provide lending to businesses like yours.  Whether a restaurant owner is in the market for a quick $25k or a beauty salon owner wants $15k to cover sudden expenses, we can help.

What we can offer is different from a bank in that we completely eliminate the mountain of paperwork, long waiting times, and stringent payback policies. Bad credit or low credit score is not a problem.  Whether it’s our Merchant Cash Advance or Business Loan, these  financing programs are an easy and fast solution for small business owners looking for credit.

Call us today at 888-506-9225 option 103 or visit our website at www.tampabaymerchantservices.com