Re: Business Banking
From: Steve Jenkins (stevestevejenkins.com)
Date: Sat, 2 Dec 2006 11:47:18 -0800 (PST)
Of course it costs money! Because you are getting benefits in return for
that money! That's kinda how the free market system works. ;)

Any merchant who chooses to accept credit cards must feel that they are
getting something in return for the percentage they pay, otherwise why would
they do it? It's a business decision. In the case of a coffee shop, I
believe it's worth it. Some of the things that could make it worth it,
especially in the case of a business like a coffee shop, are:

- Ability to sell to customers that wouldn't (convenience) or couldn't
(don't have the cash on them) purchase with cash. As long as your margin
exceeds the cost of the credit transaction, this increases your bottom line.
There are many times where I will choose a drive-through restaurant based on
whether or not they take American Express. Sometimes I don't have cash on
me, and sometimes I just want more reward points.

- Lower chance of receiving counterfeit bills. Of course, you could make the
argument that this is a small risk, and that the advantage is offset by the
possibility of credit card fraud, but most banks/credit card companies cover
the fraud themselves and still pay the merchant.

- Lower chance of receiving fraudulent checks. This is expensive both in
terms of time and fees.

- Decreased chance of theft - especially in a cash business. I doubt that
coffee shops keep tight inventory, and any business where employees handle
cash is ALWAYS at increased risk for employee theft.

- Decreased chance of employee mistakes when making change. No change with
credit card transactions, and therefore lower chances for mess-ups.

- Faster record keeping. Having all the money in electronic format from the
get-go means you don't have to count, reconcile, etc.

- No bank drops. If you don't handle cash, you don't have to count, separate
and wrap your coins, put them in a vinyl zip-up baggie, fill out deposit
slips (which is another possible chance for mistakes), and take them to the
bank, where you may get robbed on the way (by an employee who handles the
cash or by a third party), or where you may have to wait in line, get rained
on, not get to the bank before it closes, etc.

All that for 1.8% (that's why my business currently pays for Visa/MC). For
me, it's well worth it. But like I said, it's a business decision. It
certainly depends upon the average margin of the item(s) you sell, and the
transaction costs. But it's a free market economy, and you have plenty of
choices in merchant service providers, and shopping around will get you the
best deal. I should also disclaim that we don't accept American Express
(3%+) by choice. We think most people who carry and Amex will also carry a
"backup" Visa or MC, and don't believe we're missing out on business by
going that route.

SteveJ

-----Original Message-----
From: Brian E. Buxton [mailto:BrianBuxton [at] BuxtonMotorsports.com] 
Sent: Saturday, December 02, 2006 11:16 AM
To: Steve Jenkins
Cc: ferrari [at] ferrarilist.com
Subject: Re: [Ferrari] Business Banking


Why would they not want to accept cash?  Accepting any other form of 
payment (except a check) COSTS money!  Amex charges the seller/vendor 
3.5 - 5% of the purchase price, and VISA/MC, etc. charge about 2.5 - 3%

Brian



Tom Reynolds wrote:

>I heard on the radio about a month or so ago where a D.C. area coffee shop
>or cafe or some such doesn't accept cash.  Some people were going to take
it
>to court, but (and others can chime in here) even though the currency says
>"This note is legal tender for all debts, public and private" there's
>nothing that says a business has to accept cash (or can penalize it for not
>taking cash).
>Think it was on NPR in the AM...
>Best regards,
>Tom Reynolds
>Tulsa, OK
>----- Original Message ----- 
>From: <ferrarifixer [at] aol.com>
>To: "Tom Reynolds" <kjtar [at] cox.net>
>Cc: <ferrari [at] ferrarilist.com>
>Sent: Saturday, December 02, 2006 8:52 AM
>Subject: Re: [Ferrari] Business Banking
>
>
>  
>
>>I purchased my last Ferrari (F355B) from a retired bank manager near
>>    
>>
>Cincinnati about a year ago.  He insisted on a bank wire transfer.  He
>wouldn't take a "certified" check, bank check, or any other kind of check.
>I wanted to pay some of it in cash, and I was very surprised that he
>wouldn't accept cash either.  I had to twist his arm to accept a $500
>deposit to hold the car until I could arrange transfer of funds.
>  
>
>>  Times they are a changin'.
>>Regards,
>>Michael
>>
>>
>>-----Original Message-----
>>From: FList [at] hanshansen.org
>>To: ferrarifixer [at] aol.com
>>Cc: ferrari [at] ferrarilist.com
>>Sent: Sat, 2 Dec 2006 12:03 AM
>>Subject: Re: [Ferrari] Business Banking
>>
>>
>>A good friend of mine is a retired bank manager.  I'd like
>>to get her word on how you **reliably** get funds from
>>a complete stranger.   Now that she is no longer connected
>>with the bank, it could be interesting............
>>
>>Hans.
>>
>>On 12/1/06, BRIGANDBAR [at] aol.com <BRIGANDBAR [at] aol.com> wrote:
>>    
>>
>>>No disagreement with anything that you have said here.
>>>
>>>As they say, the "proof is in the pudding". If a bank in which you have
>>>      
>>>
>no
>  
>
>>>other accounts will release the funds to you, that in and of itself is
>>>      
>>>
>about
>  
>
>>as
>>    
>>
>>> close as you can get to being certain that you will be paid for the
>>>      
>>>
>item in
>  
>
>>>question.
>>>
>>>That is why customs brokers and escrow agents prosper.
>>>
>>>Dr. Steve
>>>
>>>1964 Rolls  Royce Silver Cloud III    1975 Pontiac GV Conv.
>>>1980 MB  450SL                 1982 RR  Corniche
>>>1988 Rolls Royce Silver  Spur         1994 F-350 Powerstroke  4x4
>>>1996  Bronco                                  2000 Lincoln Town Car
>>>1995 Ferrari 348  Spyder                 2004 Excursion
>>>+ Audrey's 3x MB's
>>>
>>>Dr. Stephen B. Spies, CES,  CFI
>>>Director, Forensic Sciences Laboratory
>>>Explosives Engineering  Technologies
>>>
>>>Legal Notice:
>>>
>>>This message does not constitute  legal or other professional advice,
>>>      
>>>
>nor
>  
>
>>>does it create an Attorney/Client, or  other confidential or fiduciary
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-- 
Brian E. Buxton

President, Buxton Motorsports, Inc .
www.BuxtonMotorsports.com
(812) 476-2281 x 209
Member ThaList.com

Managing Partner, Private Label Livery Services
www.PrivateLabelLimo.com 

President, Brian Buxton Enterprises, Inc.
Nationwide Enclosed Auto Transportation
www.BuxtonMotorsports.com/storage-transportation.php 

Founder & Past President
SO. IN Region PCA
www.pca.org/soi

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