Merchant statement

[riverbendnewbie]

I haven't got my machine yet but I think I am going through Costco. Right now I can only take cash,cheque(with Id or Travellers Cheques) I really wish that would be enough but I know it won't. Debit is big around here and if you have debit you may as well get Visa and Mastercard--American Express is not for sure yet. Those fees make me so ugly!

 

[happyjacks]

I haven't got my machine yet but I think I am going through Costco. Right now I can only take cash,cheque(with Id or Travellers Cheques) I really wish that would be enough but I know it won't. Debit is big around here and if you have debit you may as well get Visa and Mastercard--American Express is not for sure yet. Those fees make me so ugly!.

Before you go with a machine, check out your options for phone-in credit card processing. Our rates here seem to be much lower than they are state-side for IVR processing (this is when you use your phone to manually key in the credit card numbers instead of swiping). It doesn't work with debit, but most people who have a debit card have a credit card.
I looked at going with the Costco plan and machine, but it is considerably higher than what I pay now. I might have to switch to a machine down the road as the credit cards move away from imprint to microchip. But until then I don't mind saving some money every month.
Are you a member of a local chamber of commerce? They often have agreements with the major card processors for good rates. Or meet with the small business manager at your bank to see what rates they can offer.
As for which cards to take, around here it is mostly Visa and some Mastercard. Amex is not common here but if you're expecting a lot of business from the US, you might need it. You can always wait and see what your market demands.

 

[JBanczak]

Another thing you should consider is whether or not the service you are using is certified for lodging transactions. We estimate that most B&B's are using cc processing accounts that are setup as a "retail" account, not a "lodging" account. There is a BIG difference. With a retail account - the credit card company assumes you are selling an actual item. Sales of physical goods, not services, come under much much less scrutiny. As a service provider, you are legally supposed to be setup with an account on a system certified for lodging. These systems pass through check-in dates/check-out dates and other lodging data.
Folks like Costco do not have a setup like this, nor do most of the cc processors out there. In the past, before all of the scrutiny came on cc data safety, no one really seemed to care, but that is changing dramatically. It is only a matter of time before all lodging properties that are setup incorrectly as retailers are going to either have to switch or be shut down. eOnline Data has already terminated any lodging account they know of that was set-up. There is a big Visa change coming out later this year, and there are rumors that this is going to be part of the crackdown. It may not be this year, but the time when this happens is not going to be too far off.
My advice for anyone looking at new cc processing accounts is to look VERY critically at whether or not it is legally certified for lodging transactions, and make sure you don't get into a long-term contract where you claim you are a retailer and run into heavy fees if you are forced to switch when the Visa's of the world start to enforce the rules. It is going to be a pretty rough time period if 80% of the B&B's taking credit cards need get shutdown on short notice.

 

[JBanczak]

Some more info on this topic can be found here: http://www.evolt.org/node/12694.
From this article: "MAs are specific not only to the merchant but to the activity where they are used. Conducting credit card sales in a manner not specified in the MA is illegal and constitutes willful fraud. All revenues from such sales are also illegal and will be refunded to the cardholders, regardless of the cardholder's satisfaction with the sale."

 

[JBanczak]

Noticed there were no responses on this - does this make anyone in this forum a little nervous?

 

[muirford]

Noticed there were no responses on this - does this make anyone in this forum a little nervous?.

Doesn't make me nervous - we've had a lodging program set up for most of our six years here. PO had the retail setup - we changed over within a year. I hadn't heard about any crackdown but I wouldn't have taken notice since it doesn't apply to me.

 

[JBanczak]

Then you should be fine - not to mention get better rates and have the chargeback benefits as well.

 

[Samster]

Noticed there were no responses on this - does this make anyone in this forum a little nervous?.

I also didn't feel like I needed to reply as we have had the lodging setup from the get go.

 

[JBanczak]

That's good to hear as well. I'm guessing that folks on this forum are probably much more well-informed than most innkeepers. We find it extremely rare for innkeepers to even know that there is a difference, since most processors don't bring it up for obvious reasons.

 

[muirford]

That's good to hear as well. I'm guessing that folks on this forum are probably much more well-informed than most innkeepers. We find it extremely rare for innkeepers to even know that there is a difference, since most processors don't bring it up for obvious reasons..

It's helpful to bring it up, especially for the aspirings. Sometimes you don't even know what questions to ask when you are getting started. I would warn anyone about any long-term contract for processing until you've checked all the options thoroughly. Too many people (us included) take the PO's contract or the first one to come along and then find out later there are better programs out there.

 

[JunieBJones (JBJ)]

They want my money, they will not cut me off cold turkey, no way in the world. So whatever happens there will be a solution available.

 

[gillumhouse]

The credit card companies are making it from both ends. They charge the cardholder usury interest rates and charge the merchant almost as savagely. There is no way to tell a debit card from a credit card which sucks since if we could tell, although we cannot refuse to take it, could as I do if a guest tells me "I will just use my debit card" - why don't you just write a check since it is the same thing...... Often times they will do just that and I save the cc fees. Be aware that Corporate credit cards have a bigger bite than one held by John Q Public.
For that reason alone, I do try to use check or cash at small businesses. I have actually had guests who told me they are aware of the fees we get hit with (one said she tried to set up a cc donation for a 501(c)3 until she found out what the fees were) and therefore would be paying cash or check to save me the fees.

 

[Morticia]

Noticed there were no responses on this - does this make anyone in this forum a little nervous?.

Noticed there were no responses on this - does this make anyone in this forum a little nervous?

No, we've always been setup as a lodging property, never as retail. Our machine does 'check-in/check-out' not sales. Altho, I do have a button for 'sale' if someone wanted to buy something (usually they pay cash for gift items).

 

[gillumhouse]

Noticed there were no responses on this - does this make anyone in this forum a little nervous?.

Noticed there were no responses on this - does this make anyone in this forum a little nervous?

No, we've always been setup as a lodging property, never as retail. Our machine does 'check-in/check-out' not sales. Altho, I do have a button for 'sale' if someone wanted to buy something (usually they pay cash for gift items).
.

I got that when I changed companies this winter - check-in/check-out no more EIRF fees.

 

[swirt]

That's good to hear as well. I'm guessing that folks on this forum are probably much more well-informed than most innkeepers. We find it extremely rare for innkeepers to even know that there is a difference, since most processors don't bring it up for obvious reasons..

I think you are right. The people on this forum are typically ahead of the curve.

 

[JBanczak]

The credit card companies are making it from both ends. They charge the cardholder usury interest rates and charge the merchant almost as savagely. There is no way to tell a debit card from a credit card which sucks since if we could tell, although we cannot refuse to take it, could as I do if a guest tells me "I will just use my debit card" - why don't you just write a check since it is the same thing...... Often times they will do just that and I save the cc fees. Be aware that Corporate credit cards have a bigger bite than one held by John Q Public.
For that reason alone, I do try to use check or cash at small businesses. I have actually had guests who told me they are aware of the fees we get hit with (one said she tried to set up a cc donation for a 501(c)3 until she found out what the fees were) and therefore would be paying cash or check to save me the fees..

It is nice to see some innkeepers keep an eye on this cc processing stuff. We spend SO MUCH time trying to stay on top of it and get it right.
There will definitely be a solution out there always - as long as it is a lodging gateway you will wind up being fine. The problems without one generally are chargebacks (with no date info, retail gateways have no proof of service rendered - and since they are retail - you are not supposed to be providing service in the first place), fraud (you can get into trouble if you are not doing it properly, and the liability issues are greater if you are misrepresenting yourself), and the issues with cutting over (i.e. non-referenced refunds, deposits, etc) to a new processor can be greater as well.
Since we are on this subject, how much of a pain is the reconciliation process at the end of each month? I ask because we have something lined-up to address this issue.

 

[Morticia]

The credit card companies are making it from both ends. They charge the cardholder usury interest rates and charge the merchant almost as savagely. There is no way to tell a debit card from a credit card which sucks since if we could tell, although we cannot refuse to take it, could as I do if a guest tells me "I will just use my debit card" - why don't you just write a check since it is the same thing...... Often times they will do just that and I save the cc fees. Be aware that Corporate credit cards have a bigger bite than one held by John Q Public.
For that reason alone, I do try to use check or cash at small businesses. I have actually had guests who told me they are aware of the fees we get hit with (one said she tried to set up a cc donation for a 501(c)3 until she found out what the fees were) and therefore would be paying cash or check to save me the fees..

It is nice to see some innkeepers keep an eye on this cc processing stuff. We spend SO MUCH time trying to stay on top of it and get it right.
There will definitely be a solution out there always - as long as it is a lodging gateway you will wind up being fine. The problems without one generally are chargebacks (with no date info, retail gateways have no proof of service rendered - and since they are retail - you are not supposed to be providing service in the first place), fraud (you can get into trouble if you are not doing it properly, and the liability issues are greater if you are misrepresenting yourself), and the issues with cutting over (i.e. non-referenced refunds, deposits, etc) to a new processor can be greater as well.
Since we are on this subject, how much of a pain is the reconciliation process at the end of each month? I ask because we have something lined-up to address this issue.
.

It is nice to see some innkeepers keep an eye on this cc processing stuff. We spend SO MUCH time trying to stay on top of it and get it right.
There will definitely be a solution out there always - as long as it is a lodging gateway you will wind up being fine. The problems without one generally are chargebacks (with no date info, retail gateways have no proof of service rendered - and since they are retail - you are not supposed to be providing service in the first place), fraud (you can get into trouble if you are not doing it properly, and the liability issues are greater if you are misrepresenting yourself), and the issues with cutting over (i.e. non-referenced refunds, deposits, etc) to a new processor can be greater as well.
Since we are on this subject, how much of a pain is the reconciliation process at the end of each month? I ask because we have something lined-up to address this issue.

Explain 'reconciliation'. The processors charge what they charge so there's no getting around their billing. They make up the codes so you have no idea what the charges are for. I've called to have things explained and to get someone who knows what's going on to look at it but they drag their feet for weeks and never call back. I actually had to have AmEx call my processor to make the processor straighten out an issue they created. 2 weeks later ('We'll have some call you within 24 hours.') a rep from the processor called and said they couldn't find the problem. The processors don't care.
If you mean how easy is it to figure out that I've received all the monies from the transactions, I do that everyday.

 

[gillumhouse]

The credit card companies are making it from both ends. They charge the cardholder usury interest rates and charge the merchant almost as savagely. There is no way to tell a debit card from a credit card which sucks since if we could tell, although we cannot refuse to take it, could as I do if a guest tells me "I will just use my debit card" - why don't you just write a check since it is the same thing...... Often times they will do just that and I save the cc fees. Be aware that Corporate credit cards have a bigger bite than one held by John Q Public.
For that reason alone, I do try to use check or cash at small businesses. I have actually had guests who told me they are aware of the fees we get hit with (one said she tried to set up a cc donation for a 501(c)3 until she found out what the fees were) and therefore would be paying cash or check to save me the fees..

It is nice to see some innkeepers keep an eye on this cc processing stuff. We spend SO MUCH time trying to stay on top of it and get it right.
There will definitely be a solution out there always - as long as it is a lodging gateway you will wind up being fine. The problems without one generally are chargebacks (with no date info, retail gateways have no proof of service rendered - and since they are retail - you are not supposed to be providing service in the first place), fraud (you can get into trouble if you are not doing it properly, and the liability issues are greater if you are misrepresenting yourself), and the issues with cutting over (i.e. non-referenced refunds, deposits, etc) to a new processor can be greater as well.
Since we are on this subject, how much of a pain is the reconciliation process at the end of each month? I ask because we have something lined-up to address this issue.
.

and the issues with cutting over (i.e. non-referenced refunds, deposits, etc) to a new processor can be greater as well.
As soon as I can get back from Conferences and have 5 minutes I am going to have to call my former processor again to fax me the goodbye forms. I cannot find the ones faxed earlier (I know - decrapify). The rub is although I have been beyond the contract period for several years, they are going to charge me $295 to say goodbye. I don't think so. Since when does someone have to pay to not use a service after the contract period is over! It would be like me charging people because they do not choose to stay here an extra night....

 

[JunieBJones (JBJ)]

The credit card companies are making it from both ends. They charge the cardholder usury interest rates and charge the merchant almost as savagely. There is no way to tell a debit card from a credit card which sucks since if we could tell, although we cannot refuse to take it, could as I do if a guest tells me "I will just use my debit card" - why don't you just write a check since it is the same thing...... Often times they will do just that and I save the cc fees. Be aware that Corporate credit cards have a bigger bite than one held by John Q Public.
For that reason alone, I do try to use check or cash at small businesses. I have actually had guests who told me they are aware of the fees we get hit with (one said she tried to set up a cc donation for a 501(c)3 until she found out what the fees were) and therefore would be paying cash or check to save me the fees..

It is nice to see some innkeepers keep an eye on this cc processing stuff. We spend SO MUCH time trying to stay on top of it and get it right.
There will definitely be a solution out there always - as long as it is a lodging gateway you will wind up being fine. The problems without one generally are chargebacks (with no date info, retail gateways have no proof of service rendered - and since they are retail - you are not supposed to be providing service in the first place), fraud (you can get into trouble if you are not doing it properly, and the liability issues are greater if you are misrepresenting yourself), and the issues with cutting over (i.e. non-referenced refunds, deposits, etc) to a new processor can be greater as well.
Since we are on this subject, how much of a pain is the reconciliation process at the end of each month? I ask because we have something lined-up to address this issue.
.

and the issues with cutting over (i.e. non-referenced refunds, deposits, etc) to a new processor can be greater as well.
As soon as I can get back from Conferences and have 5 minutes I am going to have to call my former processor again to fax me the goodbye forms. I cannot find the ones faxed earlier (I know - decrapify). The rub is although I have been beyond the contract period for several years, they are going to charge me $295 to say goodbye. I don't think so. Since when does someone have to pay to not use a service after the contract period is over! It would be like me charging people because they do not choose to stay here an extra night....
.

and the issues with cutting over (i.e. non-referenced refunds, deposits, etc) to a new processor can be greater as well.
As soon as I can get back from Conferences and have 5 minutes I am going to have to call my former processor again to fax me the goodbye forms. I cannot find the ones faxed earlier (I know - decrapify). The rub is although I have been beyond the contract period for several years, they are going to charge me $295 to say goodbye. I don't think so. Since when does someone have to pay to not use a service after the contract period is over! It would be like me charging people because they do not choose to stay here an extra night....

Question for anyone and everyone - would the processor not charge the goodbye fee if you sold or gave the machine to someone else and they signed up? Like buying a time share - ugh!

 

[JunieBJones (JBJ)]

Since we are on this subject, how much of a pain is the reconciliation process at the end of each month? I ask because we have something lined-up to address this issue.
What do you mean by reconciliation each month?