~ Merchant Credit ~

Higher Sales and It's Not a Lot of Extra Work 

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Many craftsmen buy or lease special units that work with a cellular phone, (big older "bag-phones" had 6 Watts for power to get out in rural areas, the little phones usually have .5 Watts of power, which works well in areas where there are lots of towers)   Check with your cell-phone representative to find out what is recommended in your area. - The bag phone can be used with an interface which connects the unit to the cellular phone, or you may be interested in a total all-in-one unit (P.O.S.).

(About four years ago these units sold for $1800-$2400; one type is called a P.O.S unit, for Point- Of-Sale.) It takes the place of the imprinter, cell-phone and the Tranz or other type modem, and can be used on-the-spot for charge card authorizations.  Since they are used more commonly now, the price for a unit should be considerably less.

I have a simple old Tranz 330, which doesn't have a printer (optional);  it plugs into a modular phone jack in the wall, and needs an electrical connection. At shows I used a pressure imprinter and a cell-phone.  Sales are written up at shows, getting authorization for just the higher sales (over $75.00) and I usually key in the rest when I return home. I've been comfortable doing it this way, but you may want to have all your credit-card sales authorized, in which case I'd suggest a P.O.S. Unit .  Some units print out a receipt, with the reference number, authorization number, date, transaction amount, merchant I.D. etc. on duplicate paper copies. This is nice to have when things are busy.

P.O.S. units also have a built-in printer: a nice feature at a busy show; this same unit automatically dials out on cell-phone signals to get a authorization.  There are a wide range of options and you can make choices to suit any budget or need, but no matter which unit I had , I’d make sure I also had a simple pressure imprinter at every show, just in case the high-tech unit's battery ran down!  

I did a lot of research before I got my merchant credit account 17+/- years ago, and again when I got my Tranz unit about 10-12 years ago. (Before that I had only a simple pressure imprinter.) I used to mail in paperwork, but I got a Tranz because my bank didn't want to deal with paperwork anymore.  Some won’t work with you unless you key in your information via modem, virtual terminal (on the computer), or swipe the card on-site.

What has been your experience with merchant credit?  Does offering to take charge cards really increase sales substantially?

Yes, it does increase sales. Most merchant credit companies claim the increase is usually 20-40%, I found that my increase was somewhat higher, probably because I’m a silversmith. What lady can resist looking at jewelry for herself when she shops for a gift? I often sold several pieces to customers who charged their purchases, and walked away without buying the gifts for which they’d budgeted, and for which they had cash or money in their checking accounts. By using plastic, their purchases were off budget for the moment. Impulse sales account for much of the credit card business; -it’s a good way to increase your gross sales. It’s a tool, like any on your workbench. If you’re serious about your business, you need good tools.

· Is it a giant increase in paperwork, etc?

No. It’s not a giant increase at all, but sales must be written up on a charge slip and processed through the imprinter, and then through the modem at home, or transmitted through a P.O.S.(Point of Sale) unit. If you’re nervous about not getting an authorization on-site for the charge, it’s worth getting the cellular model to have immediate authorization. The bank mails you notification of funds deposited to your account, and the credit card company also sends notification of the same charges. At the end of the month you match up the bank and credit company’s notifications, and your bank statement.

My charge slips are separated and filed in chronological order, according to month.  I use an expanding check-file because it's the perfect size, and set it in a drawer.  when I open the drawer, the file is open, and I pop the transactions into the proper opening.

I also list names and sale amounts in a steno book as a cross-check, by date, noting whether they used Visa or MC, or AMEX, etc.  When I reconcile my business account, I have the transactions listed in the steno pad, with the end-of-day totals noted, and proceed to balance my account as I do my checks.  Since I pay a different discount rate for AMEX transactions, it makes life easier because they are marked in the book so I know which discount rate to use for each sale.  My American Express (AMEX) transactions are processed separately, so the steno pad list is a blessing when reconciling. It’s all one process -not a lot of work, but there are procedures to follow.

It pays to ask lots of questions to find out your alternatives . It’s reasonable to ask for references, wherever you do business.

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