Credit Cards, MO, Cashier Checks.Please HELP!

Well, I am registered now on PayPal to accept payments thru them. Has anyone here actually used this service here? I will see how it goes.
Thanx for the info Mark. Last weekend I probably lost $400 in sales because I could not accept credit cards.....bummer.

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Knives & Things
Mike Payne
 
Mike,
remember alot of sales come from impulse buys
this not really appling as much here in the forums cause most of the gentlemen here know what they want and when they want it. some of them as you have read in the earlier posts
geta bit edgey about it when its time to receive the new one. but anyways with a website,you attract tons of people aday the biggest thing you are waiting on is for them to see something they want at the price they want it at. and boom they drop the card and wait till it gets there. when you cant take that card. they may say well ill think about it and maybe send this guy an email about this later. well then later never comes. and you lost that 100 or whatever just cause you wasnt ready for him. the only good thing about that is you never knew that he wanted it and that you lost the sale. now at the shows its almost a must. at the shows we do theres alot of smaller dealers there. and at one time they got very agervated about us taking cards cause they couldnt. so i decided for those fellas that i knew fairly well i would take the card for them and give them the cash less the 3% i loose of course. and this did help them out alot with there sales. you may think about a friend there or something similar till you get this deal done. someone would more then likely help ya out Mike.

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Mark-@-MJS
mjsknives.com
knifeman@mjsknives.com
1-800-434-5073
good as the best and better then the rest.


 
Well, I must face up. I'm gonna have to plunge for the merchant Set-up. This is not a business I am "piddling" around with. I've got too much invested already to lose sales on plastic.

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Knives & Things
Mike Payne
 
Mike, if you're looking for some perspective, I just did a knife show in the Los Angeles area. My gross for the weekend was over $5000.00 with over $2000.00 in credit card sales. That is typical in my area. Also, the sales I get via phone or off the 'net are running about 90% CC and the store is around 50%. It is worth it to go with credit cards if you want to increase your sales.

I have heard some horror stories about fraud, etc. but I have never experienced any myself. I know people who have been stung by phoney Money Orders on COD shipments (one to the tune of $8000.00) so nothing is absolutely safe.

I limit my CC sales to the US as I feel I have better recourse in my own system than an offshore or cross-border transaction but, as I said already, I haven't had any problems but I have read some pretty scary accounts of bad transactions, especially from Europe. A small business can be destroyed by a couple of heavy bogus transactions unless you have a good cash reserve or have your cash flow under control.

You say you do shows so make sure the merchant account you get will let you do transactions off line.(Some of them don't).
I've seen some merchant accounts that won't let you hook in to an existing account that is used offline. It can get very wierd.

Read the fine print very carefully. A good discount rate may look attractive but transaction fees, starement fees and service charges can eat up your profits pretty quick. It's best to get a "bundled" rate if you can. The 3% Mark refers to is actually pretty good when you check out all the variables.

You get a better rate if you use a system that lets you swipe the card and get instant authorization at the shows. I use a system that hooks up to a cellphone and it works great(most of the time). Cell service can be dicy in some areas but that's rare.

The bottom line is that, if you want to seriously do business, you will have to take plastic. Bite the bullet and go for it, and good luck.

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Dennis Wright
Wright Knife & Sporting Goods
1-800-400-1980
("Have a knife day!")
wrightknife@ixpres.com

[This message has been edited by Dennis Wright (edited 02-14-2000).]
 
When I go shopping for anything on the net, it is always with a credit card. The exception is a recent order I placed. And I'm a little nervous because of it.

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Hoodoo

No, I do not weep at the world--I am too busy sharpening my oyster knife.
Zora Neale Hurston

Oversharpen the blade, and the edge will soon blunt.
Lao Tsu
 
Brian, I clicked on the Epal deal from your post. My computer was doing a good imitation of molasses tonight and due to the porkchops in the kitchen I decided on this approach. Also I HATE reading a great deal of info from a screen. Any way would you mind sending a personal reponse to me about the highlights of this program? Or answer it here and I will check back tomorrow.
I too have been thinking about this CC deal.
Any investigation will show that not all the crooks are in jail... some are called bankers!!
But that does not change the fact those same bankers have the world convinced that CC are the way to go.
Question to who ever. Doesnt a persons server have to be rated as a "secure" server to stay out of trouble?
I dont think my server fits that description.
Also another comment . The seller gets nailed between 5 and 7 percent on every sale... right? When a lot of small dealers are only marking up their stuff a very small percentage anyway that leaves very few points profit, at least when the wash is done. I know that wally world makes it up in volume but can the average small knife dealer pretend to be wally world?
I mean these as honest comments and questions as I am in the same boat as the original post. Thanks Ron Ryder


 
Am in money order hell at the moment!!
I've got money orders to 2 BF members that haven't arrived after 2 weeks in the post - that's a fair bit of money just floating around not to mention the feeling like a schmuck because it's taking so long to get these good folks their money. Now this is a postal problem rather than a m/o problem per se but compared to the instant and cheaper credit card method m/o's suck bigtime. Am stressed out and won't be using m/o's again if I can help it!
 
Dear friends etc... This morn my PC is running about like 30weight Quaker State, not quite as slow as last night but I have seen it run better.
I found the Paypal site and it looks interesting.
Question. Does the SELLER pay any fees?
One of the reasons I ask questions here instead of going to them is I know most of you folks sell knives, not money transactions, so I figure you all will send the straight scoop. Anyone with experience with paypal is free to answer.

Brian, IF I sign up with this I will use your reference. This part of paypal looks a whole lot like a pyramid/multi level marketing deal to me. Those, I do not care for, but if you guys say this place is OK I am willing to think about it.

Thanks, Ron Ryder
 
RGR,
I used PayPal when a Postal Money Order was lost for 23 days to pay another member. PayPal transaction was flawless and everyone was happy. That has been my only experience thus far.

sarge
 
Go with the Credit cards.As a buyer, the ability to use plastic means a coulpe of things to me
1) faster shipping times
2) flexability-since you get about 30 days free use of the money,you can buy now and pay for it later when your paycheck comes in.It fuels impulse buys.
3)The impression of stability and reliability.When I see a CC option on a web site,I tend to assume that the vendor has deep roots and financial stability.On the web,everybody looks the same,so this is a way to generate trust with potential new customers.
4) Debit card use.I use my debit card from the checking account often.It is faster and easier that using a check and appears automatically on the statement.Debit cards are growing at a fast pace.
I know this service costs money,But I`d wager that the increase in traffic will more than offset any added expense.Your profit will come from attracting loyal,satisfied customers.The ones who will play musical chairs,switching dealers to buy a particular knife for $.50 less aren`t going to be your bread and butter in the long run.They have no loyalty anyway.To get customers to trust you and be satisfied,you have to get them in touch.I think credit cards make it easier.
Good topic!
David

AKTI#150
 
Dear friends and independent thinkers. Penalize my brownie points for being impatient... does anyone know if the seller
gets tagged for using Paypal?
Thanks, Ron Ryder
 
I'm still investigating Ron. I will know for sure I guess when I withdraw my funds.

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Knives & Things
Mike Payne
 
Hi,
Credit cards are the way to go. I've got a web site specializing in Scandinavian and other traditional patterns, (http://www.ragweedforge.com) and almost all my transactions are by credit card. I would guess my business increased ten-fold when I added credit card payment. My show sales increased also, but not as dramatically, since many of my knives are under $25 and most people will have that much in their pocket for an impulse purchase. Even at a show however, I'd rather take a cc than a check, because I feel there's less chance of getting burned.
I use Discover Novus Network and have been very happy with them. They broker (for a fee of course) Visa and Master Card as well as their own Discover card, so I get a good range of cards from one source.
You do need a ISP with secure capability.
This can be a problem. The trick is not the secure connection but the verification of the secure connection, the security certificate. This costs your server a fee (what else?) so small ISPs may not want to bother. I had to move my web page to get a server with a good certificate. While this did nothing to increase actual security, it did wonders for the trust factor. (VeriSign is the big player, but there are others.) If you have to shop for a new server to get a secure connection, be sure you ask not only if they can make a secure connection, but if they have a major security certificate. I was ignorant of all this and at one point ended up with three paid web accounts at different servers because I didn't know the right questions to ask! Don't believe the sales rep without checking yourself. Ask for an example of a secure page on their server and go to it. If the padlock on the bottom corner of you screen shows closed, you actually have a secure connection.
With all the potential hassles, credit cards are still the way to go. (IMO)
Your milage may vary! ;->
Good luck and good business!

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"A knifeless man is a lifeless man." -old Nordic proverb.
 
Hi Ron,
PayPal does not charge a fee to either buyer or seller. I believe they make their money off the "float" -- essentially, they have use of the money from the time at which the cc company pays them until the funds are withdrawn from their system. I don't know how others are using their system, but I've left a small balance with them to fund modest impulse purchases. Since they do not pay interest, they have full use of those funds to invest, earn interest themselves, etc.

The closest thing they have to a "hidden fee" is the fact that the minimum they will charge to your cc is $5. Say, for example, you want to pay someone $2. They will charge your cc for $5, pay the $2, and leave $3 in your account. Continuing with this example, say you next want to send someone $20. They take the $3 from your account & charge your cc for $17.

Mike, to date, I've withdrawn funds four times via direct deposit to my bank and there was no fee subtracted by PayPal. Even more amazing is the fact that my bank did not charge a fee for the direct deposit either. I say amazing because I've had money "wired" to me on several occasions & my bank always takes their pound of flesh. Considering the fact that they charge for just about everything else, either the PayPal transfers somehow slipped under their radar or they may even have a special arrangement with my bank. In any case, I wouldn't be surprised to see a fee imposed in the future but so far so good.

Just to clarify my recommendation of PayPal for small dealers, I didn't mean to suggest that it is a perfect solution. Although it works for online transactions, it does require that your buyers take the time to set up an account with them -- something that everyone will not be willing to do. Also, as PayPal is currently configured, it is not a solution for phone orders or trade show sales. As I said earlier, I think it could be a good "toe in the water" approach for you to see if the volume of your cc sales would justify the expense of opening a merchant account.

BTW, the client I mentioned has decided not to use PayPal to pay for the seminar, probably meaning the typical 60-90 wait for my money.
frown.gif


I found the information that PayPal provides to be fairly straight forward; however, as with anything else having to do with money, it's important to read & understand all the fine print.


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Cheers,

--+Brian+--

He who finishes with the most toys wins.
 
Good reply Brian. I have not withdrawn funds from PayPal yet myself. As I said earlier, I think I'm still going to look into the merchant account. Also, PayPal does NOT work on international orders. I have had to find alternate methods(using a friend's merchant account) for these orders. I have 2 international orders pending right now for "means of payment".

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Knives & Things
Mike Payne
 
Good point about PayPal's limitations for international orders, Mike. I'm selling a few things on eBay right now & just had to explain to a gent from the UK that I could take cc's from US based buyers only.

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Cheers,

--+Brian+--

He who finishes with the most toys wins.
 
Pay Pal is awesome! They even have nifty pre-made links to add to your website or sales. Here's one:
<A HREF="https://secure.paypal.com/auction/pal=the4th%40netnitco.net" target="_blank"><IMG SRC="http://www.paypal.com/images/paypalbanner.gif" WIDTH="468" HEIGHT="60" BORDER="0" ALT="Pay me with Visa/MC at PayPal.com - always fast, free and secure!"></A>
 
Guys... Can we get someone from Paypal to run for President?
The only one to get better press than this out fit would be Clinton hisself!!!
Seriously with all the good posts I will try this company too. Thanks for the infor and straight talk. Ron Ryder
 
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