Credit Cards

Anyone have first hand thoughts or advice on arranging to accept credit cards for an initially small, primarily service business?

My only experience as a credit card merchant was when I was treasurer of Arisia.  At the time we accepted Visa and MC through our original bank, located in western Massachusetts (which eventually became a problem).  The bank was chosen in large part because their relationship with one of the first guests of honor influenced their granting the organization a merchant account, which at the time was like pulling teeth.  Everything was paper forms then, and we just had to write SOF (signature on file) if they mailed in the membership signup.  If I recall correctly, the percentage fee they kept was 4.5% and went as high as 4.75%, which I thought was the ultimate racket.

Obviously I’ll want the fees to be as modest as possible, while knowing I may have to bend over for a while, as a new and small customer.  At least there are many and easier options, from what I can tell.  Worst case, you can use PayPal and take cards through them, but that appears to be kludgy.  Obviously I’ll talk to the bank when I start the relevant checking account, too, but thought I’d throw this out there.

1. I started my own full-time business in 1988. I repair Hasselblad cameras, and have customers all across the country. They ship their camera to me, I repair the camera, and ship it back to them. I also sell used Hasselblad camera equipment.

   I wanted to be able to accept credit cards. So I went to the bank that I do business with, and told them that I would like to be able to accept credit cards. They asked me if my business was “mail order”, to which I replied, “yes”. They told me that they would not act as a credit card processor for mail order businesses. So I went to a bunch of other local banks, and was told the same thing.

   For some reason, all the banks I spoke with were not willing to act as a credit card processor for a mail order business. Too risky.

   A short while later, I received a call from a bank in Maryland, asking me if I would like to be able to process credit cards for my business. I told them that I would, and a representative from their bank visited me the next week. During this visit, I signed up for their credit card service.

   This company has been processing my credit card sales since 1988, and I am very happy with the service that they provide. I have never had a problem with them.

   Here is their contact information:

   Chase Paymentech Solutions
   P.O. Box 6600
   Hagerstown, MD 21741

   Telephone: (800) 824-4313

   Sincerely,

   David Odess

   http://www.david-odess.com

   Posted by David Odess  on  02/01  at  04:46 PM  from  Randolph, Massachusetts
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