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credit cards and merchant accounts

updated thu 7 oct 04

 

Jonathan Kirkendall on tue 5 oct 04


A happy story!

I'm sending this out because I found the information in the archives
invaluable when I was looking to set up a merchant account so that I
could take credit cards at a new weekly art and craft sale that we've
started on Saturdays in downtown Washington DC (If you'd like info on
this, email me), and I wanted to share my experience with others.

I spent a lot of time researching, following leads, making phone calls.
Many of the websites that offered credit card services to "artists and
crafters" looked just plain cheesy, or were too complicated for my
college educated mind. Searching through the Clayart archives I came
across a post that recommended checking out what one's local bank would
offer. So, on a day when I placed phone calls to several companies, I
also sent an email to my bank (which is really not a small home town
bank, but a branch of one of those huge conglomerate banks). In two
days I received a call from Suntrust Merchant Services. It was an
amazing deal. No start up costs (usually $175). No monthly statement
fee (usually $10/month). The knuckle buster imprinter cost me $40, and
the LinkPoint AIO would cost $19.99 a month instead of the usual
$42/month. When I want to buy it (I can't afford to do so now), the
rent fees I've paid for it will go towards the total. Because I am a
seasonal vendor, I have no monthly minimum fee for January, February,
and March. The rates for each sale are competitive.

The best part is I took credit cards for the first time on Sunday at
the Takoma Park Street Festival, and yes, sales were 1/3 higher than
what they've been in the past. It's not so much that people were
either going to buy or not buy, depending on whether or not they could
use a card, but that several folks whipped out the card to pay for a
bowl then said "Oh, go ahead and I'll get two instead" or "Let's add a
mug to that."

After years of being intimidated and really trying to figure all this
out, taking the plunge to accept credit cards feels very, very good.
And I'm so thankful for that post recommending a call to one's local
bank.

Jonathan in DC
where the brisk weather inspired me to try out Dannon Rhudy's Green
Tomato Pie (from Clayart Cooks) last night - fabulous! Thanks Dannon!

David Hendley on tue 5 oct 04


Thanks for this report.
I am confused about one thing:
What is the difference between a "monthly statement fee"
and a "monthly minimum fee"?
How much is the monthly minimum fee and what criteria determines
if you have to pay it or not?

Thanks,
David Hendley
david@farmpots.com
http://www.farmpots.com


----- Original Message -----
> I spent a lot of time researching, following leads, making phone calls.
> Many of the websites that offered credit card services to "artists and
> crafters" looked just plain cheesy, or were too complicated for my
> college educated mind. Searching through the Clayart archives I came
> across a post that recommended checking out what one's local bank would
> offer. So, on a day when I placed phone calls to several companies, I
> also sent an email to my bank (which is really not a small home town
> bank, but a branch of one of those huge conglomerate banks). In two
> days I received a call from Suntrust Merchant Services. It was an
> amazing deal. No start up costs (usually $175). No monthly statement
> fee (usually $10/month). The knuckle buster imprinter cost me $40, and
> the LinkPoint AIO would cost $19.99 a month instead of the usual
> $42/month. When I want to buy it (I can't afford to do so now), the
> rent fees I've paid for it will go towards the total. Because I am a
> seasonal vendor, I have no monthly minimum fee for January, February,
> and March. The rates for each sale are competitive.

Jonathan Kirkendall on wed 6 oct 04


David,

They are two different fees. The statement fee is what they charge you
for sending you a monthly report. A minimum fee is what you have to
meet each month in sales with the credit card, or they deduct that from
your account. They really do nickle and dime you every way possible.

So, the fact that Suntrust Merchant Account waived my monthly statement
fee will save me $120 a year, and the fact that they can work with
"seasonal sales" means I get to choose three months out of the year
that I don't have to meet the monthly sales minimum - January,
February, and March, though I certainly can still do credit card sales
if they happen.

Jonathan in DC


On Tuesday, October 5, 2004, at 11:52 PM, David Hendley wrote:

> Thanks for this report.
> I am confused about one thing:
> What is the difference between a "monthly statement fee"
> and a "monthly minimum fee"?
> How much is the monthly minimum fee and what criteria determines
> if you have to pay it or not?
>
> Thanks,
> David Hendley
> david@farmpots.com
> http://www.farmpots.com
>
>
> ----- Original Message -----
>> I spent a lot of time researching, following leads, making phone
>> calls.
>> Many of the websites that offered credit card services to "artists
>> and
>> crafters" looked just plain cheesy, or were too complicated for my
>> college educated mind. Searching through the Clayart archives I came
>> across a post that recommended checking out what one's local bank
>> would
>> offer. So, on a day when I placed phone calls to several companies, I
>> also sent an email to my bank (which is really not a small home town
>> bank, but a branch of one of those huge conglomerate banks). In two
>> days I received a call from Suntrust Merchant Services. It was an
>> amazing deal. No start up costs (usually $175). No monthly statement
>> fee (usually $10/month). The knuckle buster imprinter cost me $40,
>> and
>> the LinkPoint AIO would cost $19.99 a month instead of the usual
>> $42/month. When I want to buy it (I can't afford to do so now), the
>> rent fees I've paid for it will go towards the total. Because I am a
>> seasonal vendor, I have no monthly minimum fee for January, February,
>> and March. The rates for each sale are competitive.
>
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