POLL: Dealers, do you accept credit cards at shows?

nwcs · February 25, 2003 3:01AM

This is something I am really curious to find out.

FinallyHere · February 25, 2003 3:11AM

For me it depends. I will almost always try to accomadate a client at a show in any way I can. If I have an ongoing relationship with the client, I'll just take the invoice home with the credit card information and run it from the office....there is no real way to actually run the card at a show. If it is a new client that wants to pay with a card and he has references I can check at the show, I'll do the same as I mentioned above. If he is new and has no references to speak of....I'll try to call it into my office and have my secretary run the card....if it is a weekend or she is not in the office....I'll have to take the coin home, run the card and ship the coin.

Guess I was just supposed to vote huh? and not go on like I did. Oh well.....it's typed out now....and besides it was not a yes or no answer for me anyway....

Mike

website

wayneherndon · February 25, 2003 3:21AM

Yes, we take credit cards at shows and often are the only ones doing it. Most people end up paying by cash but there are always a few that want to use a card. Some regular customers know we take it and bring less cash. Others run out of cash and find they can continue shopping, notwithstanding, using Visa at our table.

It is a bit of a hassle since telephone lines are typically not available. We use you a cell phone to call in and authorize the transaction. It takes a bit longer since the info has to be keyed in rather than just swiping the card. Still it only takes a couple of minutes and we try to have enough help at the show that we can continue helping other customers while the card transaction is being processed.

I'd be intersted in hearing from customers as to how valuable it is to have this method of payment available. On a typical show, we average 2-3 credit card transactions a day. Fewer than I would initially suspced based on the ratio of credit cards used in the rest of our business. It's enough that we'll continue to come prepared to take payment this way.

WH

jadecoin · February 25, 2003 3:23AM

Howdy! In order to minimize our markups, we do not. Otherwise, we'd have to add an additional 4% to the price of our coins.

jadecoins

nwcs · February 25, 2003 3:24AM

Interesting question about what customers would like at a show. If I saw a sign that showed Visa/MC expected, I'd probably be more inclined to spend more money there.

FinallyHere · February 25, 2003 3:35AM

Jadecoins,

I say with upmost respect and sincerity......it is absolutely against the rules of the card companies to charge a client more money for using a credit card....and if the credit card companies found out about it, they could take away your abilities to process trasnactions and accept cards. I know this to be true. What I typically do, is offer a discount of say 3% for not using a card.....this is legal for sure. But, an upcharge or surcharge over your advertised price for using a card is not acceptable to Visa, Mastercard, Discover and any others I can think of. This is clearly stated in the acceptance agreements with the credit cards. You can offer a discount for using "cash or check" but you cannot charge more for using a card. If I have a coin listed for say $1000 and they would like to use a card....the price is $1000. If they would like to pay with a check.....it might be $950 or something like that - as an example.

Anyway, I say this to help you and make you aware of this. If a client brought this to the attention of the card companies....this could spell trouble for you as far as them allowing you to take the card in the future as a merchant.

Mike

website

Lakesammman · February 25, 2003 3:46AM

If they take credit cards, the mark up is too high!

wayneherndon · February 25, 2003 3:50AM

Yes, a surcharge is prohibited while a discount is permitted. Credit card fees typically run around 2-3% depending on the issuer and merchant volume. Because not all customers pay by credit cards, our actual credit card fees (including PayPal fees) as a percent of total sales typically runs between 1% and 2% each month. This is something we absorb in overhead. It is my opinion that we do a greater sales volume by taking credit cards and the margin on the extra volume essentially covers our costs of offering the service to our customers. Thus, contrary to lakesamman's post (which may have been in jest--I can't tell for sure), I actually think accepting credit cards helps keep our prices down by driving greater volume.

On the internet (eBay, our website, etc.), I think it helps new customers feel comfortable dealing with an unknown entity since they have some protection in the event of non-delivery. At shows, it helps avoid that embarrassing moment over a large check from a new customer. They pay with plastic and do not have to provide references and we can comfortably take it without wondering if the check is going to clear.

WH

FinallyHere · February 25, 2003 3:53AM

Lakesmann,

Now this statement I will totally disagree with, respectfully. I take cards, I do not advertise that I do since I have fees to pay if I take them, but as a businessman it only makes sense to offer clients several ways to pay you....one of those being credit cards. The idea here is to try and make it as easy as possible to do business with you. To say "If they take credit cards, the mark up is too high! " is simply not an accurate statement. This comes down to customer service.....nothing more nothing less. This statement would mean that anyone selling anything and taking credit cards charges too much.....besides...as I said before the fees range from 1.5% if you get a really good deal from your bank, or whomever you use....to 2.5% if you want service from your process company and do not do a huge amount of transactions per year.

Mike

wallstreetman · February 25, 2003 4:05AM

If you dont take credit cards your losing 40% of your business! I could be wrong, but I thought the case with gas stations charging more for credit brought about changes, making it against the law!

redhott · February 25, 2003 4:08AM

I feel that taking credit cards is strictly a matter of customer service, as that was the driver behind customers' requests that I do so. I thought it over and decided to try it, and sure enough, it results in more sales. It never occurred to me to raise my prices, since I got a benefit from an expense that is directly tracked to increased volume.

DesertLizard · February 25, 2003 4:08AM

I buy nearly six figures annually in coins....only use credit cards. Heritage is good for that.

Dealers who don't take cards don't get my business.

Sure they are saving 4% but losing on thousnds in profit.

jadecoin · February 25, 2003 4:15AM

Hi Mike! We're aware that what you say is true, but I think that's on an individual basis. In other words, I can't tell a customer "If you use MC, I will tack on 3%". The surcharge would already be rolled in the price, having propagated it's way through the cost structure. It shows up on the final price tag as a byproduct of increased cost.

Great comments!

jadecoins

FinallyHere · February 25, 2003 4:16AM

DesertLizard,

You make a great point and while I do take cards, I do not "advertise" this....and perhaps I should. However, many of my clients know that I do take cards.....and do so without hesitation.

Lakesmann - the way gas stations get around this is simply to say that they are not charging more for credit cards, but offering a discount for using cash, which could be taken as a charge for using card - and around and around you go with it. $1.66 or $1.63 with cash.....it's fun and games with words, but this is their out and it is totally accepted.

Mike

Barry · February 25, 2003 4:43AM

I prefer to buy with credit cards, primarily because I don't like carrying a lot of cash. If I'm buying generic items at a show, the credit card dealer will get my business. If it's an item that is unqiue, then I don't have much choice.

IrishMike · February 25, 2003 5:11AM

Mike, trust me if you go on too long there are people who will point that out to you. I see no reason to take cards, I always take cash to a show and if I don't have enough I tell the dealer to hang on to the coin. There is always an ATM machine nearby and I have set it up with my bank to exceed the normal cash limitations. I also have developed relationships with enough dealers that someone I know is usually around as a reference.

If you only purchase coins with credit cards you are missing out on 40% of the nice coins that you might find and can't purchase. That is a two way street.

maddox · February 25, 2003 5:17AM

<< <i>I prefer to buy with credit cards, primarily because I don't like carrying a lot of cash. If I'm buying generic items at a show, the credit card dealer will get my business. If it's an item that is unqiue, then I don't have much choice. >>

I totally agree, I try and take a reasonable amount of cash to a show, but it's never enough and out comes the CC. At the F.U.N show one dealer lost out on a $1600 sale, on the last day of the show! I found a comparable coin at another booth that did take CC's.

As far as rates that banks charge, 4% is a rate that you would pay if you have a high chargeback or multiple fraud problems with the account (not saying you do) The rates banks charge depends on the amount of hand keyed vs swiped cards, the longer you are in business and the fewer problems you have the lower your processing rate. I have a online store not related to coins that processes 20-25 hand keyed tranactions a day, my rate is 1.47% we do not take AMX or Discover as there rates are 2% and above. Started out at 2.60% and I negotiated it down 3 months later and again 3 months after that to the 1.47%

As far as processing cards at shows, Omni Pro and Veriphone all have portable terminal/printers with jacks to attach to your cell phone. I actually have one as we do a lot craft shows, I do 2-3 times what the other vendors do, all because I can process CC's in real time... Well worth the 1.47%

Use well known banks (we use Wells Fargo) and don't use a secondary company to process the cards, they tack on 1% to do nothing but route the transaction to the bank.

MastaHanky · February 25, 2003 5:18AM

<< I'd be intersted in hearing from customers as to how valuable it is to have this method of payment available. On a typical show, we average 2-3 credit card transactions a day. Fewer than I would initially suspced based on the ratio of credit cards used in the rest of our business. It's enough that we'll continue to come prepared to take payment this way. >>

The only reason I never brought a credit card to a show is because I figured none of the dealers would take them.

Knowing this, I'll start bringing it to shows. Paying with a card is a very valuable feature for me, and I will definitely continue to do business with any dealer who does take a card.

maddox · February 25, 2003 5:22AM

Plus, if you have a mileage card with an airline, it's easy to rack up a LOT of points using a CC. Just make shure you pay down the card

Bear · February 25, 2003 5:22AM

I was just thinking, If one doesnt carry a lot of cash and loses out on 40% of the coins

you want. Do you also miss out on 40% of the muggings?????

I have been known to mugg people just to get their CameoCC Cup.

Blade · February 25, 2003 5:34AM

Wayne,
I like your approach and would would find it tremendously helpful to pay via credit card at a show. This sure would make it easier than having you hold the coin with a downpayment and me mailing a check when I get home.

BillJones · February 25, 2003 10:11AM

The short answer is no.

The trouble is, guys, is that the credit card company takes 3% or so. I had one deal that went a bit sour. The guy nogociated me down, than then he pulls a credit card on me. I wanted to liquadate the coin so I took it, but it really killed the deal for me.

If you are buying gold coins and modern bullion coins forget the credit card. The fees will eat up most or all the mark-up and then some.

DesertLizard · February 25, 2003 10:21AM

I don't see how a 3% fee eats away the whole profit as some claim.

I lost out [i got the times mixed up] on a DMPL Morgan in the FUN auction and a dealer I know won it for about $1,500. I offered him $2,000 for the coin and he said no. Next I get his mass email touting his new purchases and low and behold the same DMPL coin is for sale at $3,750!!!

When I see that [other dealers do the same] I can't buy the 3% CC will kill me routine!

BillJones · February 25, 2003 10:36AM

OK not the whole the profit, but I started with an 8% mark-up, got negociated down to 6% and then the credit card, which cost me $100 got it down to 3%.

When you pull a credit card on negociated deal, you have changed the deal so far as I'm concerned. It's what I get to collect, not the gross.

This is a low mark-up business. If I were selling jewelry with a 50% mark-up I'd take credit cards all day, but I'm not.

POLL: Dealers, do you accept credit cards at shows?

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