Re: Business Banking | <– Date –> <– Thread –> |
From: Steve Jenkins (steve![]() |
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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 >>>relationship between the sender and/or any other party >>> >>>Confidentiality Notice: This e-mail (including attachments) is covered >>> >>> >by > > >>>the Electronic Communications Privacy Act, 18 U. S. C., Sections >>> >>> >2510-2521, > > >>and >> >> >>>is intended only for the person or entity to which it is addressed, and >>> >>> >may > > >>>contain confidential or privileged material. Any unauthorized review, >>> >>> >use, > > >>>disclosure, dissemination, copying, forwarding or distribution is >>> >>> >prohibited. > > >>>If you are not the intended recipient contact the sender by reply >>> >>> >e-mail and > > >>>destroy all copies of the original message. If you are the intended >>> >>> >recipient > > >>>but do not wish to receive communications through this medium please so >>>advise the sender immediately. >>> >>>Electronic Transmission Security Notice: E-mail transmission cannot be >>>guaranteed to be secure or error-free. The sender does not accept >>> >>> >liability > > >>for >> >> >>>any errors or omissions in the contents of the message that arise as a >>> >>> >result > > >>>of its electronic (e-mail) transmission. >>>_________________________________________________________________ >>>To unsubscribe or modify your subscription options, please visit: >>> >>> >>> >http://lists.ferrarilist.com/mailman/options/ferrari/flist%40hanshansen.org > > >>>Sponsored by BidNip.com eBay Auction Sniper >>> >>> >>> >>_________________________________________________________________ >>To unsubscribe or modify your subscription options, please visit: >> >> >> >http://lists.ferrarilist.com/mailman/options/ferrari/ferrarifixer%40aol.com > > >>Sponsored by BidNip.com eBay Auction Sniper >>________________________________________________________________________ >>Check out the new AOL. Most comprehensive set of free safety and security >> >> >tools, free access to millions of high-quality videos from across the web, >free AOL Mail and more. > > >>_________________________________________________________________ >>To unsubscribe or modify your subscription options, please visit: >>http://lists.ferrarilist.com/mailman/options/ferrari/kjtar%40cox.net >> >>Sponsored by BidNip.com eBay Auction Sniper >> >> >>-- >>No virus found in this incoming message. >>Checked by AVG Free Edition. >>Version: 7.1.394 / Virus Database: 268.15.2/560 - Release Date: 11/30/06 >> >> >> >> > >_________________________________________________________________ >To unsubscribe or modify your subscription options, please visit: >http://lists.ferrarilist.com/mailman/options/ferrari/brianbuxton%40buxtonmo torsports.com > >Sponsored by BidNip.com eBay Auction Sniper > > > -- 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 _________________________________________________________________ To unsubscribe or modify your subscription options, please visit: http://lists.ferrarilist.com/mailman/options/ferrari/steve%40stevejenkins.co m Sponsored by BidNip.com eBay Auction Sniper
- Re: Business Banking, (continued)
- Re: Business Banking Doug and Terri Anderson, December 2 2006
- Re: Business Banking Brian E. Buxton, December 2 2006
- Re: Business Banking Tom Reynolds, December 2 2006
- Re: Business Banking Jim Conforti, December 2 2006
- Re: Business Banking Steve Jenkins, December 2 2006
- Re: Business Banking Tom Reynolds, December 2 2006
- Re: Business Banking Charles G Perry IV, December 2 2006
- Re: Business Banking Brian E. Buxton, December 3 2006
- Re: Business Banking Steve Jenkins, December 3 2006
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