Important Information for Startups and Storefronts.

May 4, 2015


For anyone who is currently operating a storefront or who is considering starting a business, it is important to understand the ways in which one may collect money for selling products and services, whether on the Internet or at the storefront. Making the right decision will help to increase the business profits.

When developing a business idea, it is important to include plans for managing the collection of the money to ensure that the business is making the maximum amount on the products and services while keeping the costs of doing business as low as possible. Therefore, it is best to research all the options and the costs involved.

In this day of digital products, it is amazing how many business owners still insist on accepting cash only for their businesses. By doing so, they are overlooking the fact that customers like choices and their competitors are constantly seeking ways to have a competitive advantage over other businesses. We cannot afford to overlook the advantages to accepting credit cards at the place of business, especially if we have a quality product or service to offer consumers.

I have recently published a new book for startup businesses about the credit card processing industry with the latest developments on the laws regarding credit card acceptance at storefronts and online. The book, The Retailer’s Guide to Merchant Services, includes information about rates, fees, advantages, and disadvantages of collecting credit cards. Join my mailing list.

Marketing Mistakes

July 22, 2011




Although many retailers are moving their operations across the seas, they can still avail themselves of the opportunities to market their businesses on-line. Shoppers have become more sophisticated and willing to shop on the Internet, now that more safety measures are in place. Many of the on-line shopping carts are encrypted, making them less vulnerable to identity theft.

Read more: Marketing Mistakes.

Reviews for Your Business, Making More Money, Part 1

April 11, 2011

Reviews for Your Business; Making More Money>

Customers can add reviews about your business and help attract more customers based on what they say. There are many review sites on the Internet which allow this. Customers use the information for shopping. The average customer is more sophisticated when seeking products and services. (To read more, click onto the article title.)

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New Debit Card Ruling

June 22, 2010

Senate and House members have agreed to slash the debit card fees that the banks charge to retailers and other business owners for accepting debit cards at their businesses. These fees ranged from 1%-2% of the cost of products sold by the merchants. Many of the larger retailers stand to gain several million doallrs per year as a result of this ruling. Walmart stands to gain the most as 17% of purchases are made with debit cards.

The banks are not happy and claim they may have to raise other fees to make up for the losses. An attorney for MasterCard states the losses may be passed on to the consumer. Currently, approximately 13.4% of all purchases are made with debit cards and pre-paid cards.

The Federal government will now monitor the fees costs and will be checking to make sure the fees are “reasonable and proportional to processing costs.” The following decisions were mandated by Congress:
Banks with over 10% in assets would be subject to fee oversight.

Government administered debit cards and reloadable prepayment cards would be exempt.
Merchants would be allowed to offer discounts for use of cash instead of debit.
Merchants could set a $10.00 minimum for card transactions.

It is questionable whether the banks would really stand to lose on this recent ruling because they are now stating that they may have to raise other fees to make up for their losses. The consumer stand to lose here as retailers and other merchants stand to gain. The retailers have joined to lobby Congress about credit card fees and have been fighting legislation for the last two years. They have a website which provides information on their stand on credit card fees and the action they are taking.

Goldman Sachs to Help Small Businesses

December 1, 2009

Just when we thought small businesses were going to experience harder times than major retailers, Goldman Sachs comes to the rescue with a plan to educate and finance small businesses. Their impressive plan to funnel $500 million dollars to provide management education, mentoring, and access to capital to small businesses is the largest of its kind in history. Warren Buffet, who bailed out Goldman Sachs early in this economic crisis, will assist Goldman Sachs in providing theses resources to small businesses.

Major retailers have experienced a loss of funding due to CIT Bank having to eliminate their factoring loan program. Factoring loans were very popular around holiday time for financing Christmas inventory. Retailers now have to finance their own inventory.

Critics say that Goldman Sachs is using this opportunity to improve its image and bad reputation as a result of receiving bailout money and improving its financial position. It would help small businesses to know how to research grants and loans if they would like to take advantage of this opportunity to grow their businesses. – Others. Boston Catalog | largest Business Directory in Boston area MA

CIT to File for bankruptcy

November 3, 2009


Photo by lprole

CIT has been unable to convince bondholders to finance more of their debt. This coupled with the fact that investors would lose money on the a pre-packaged bankruptcy, including the U.S., has caused the company to seek bankruptcy protection. The U. S. stands to lose $2.3 billion and opted not to supply more funds.

The only investor which seems to gain anything from this is Goldman Sachs, who will keep open its $2.3 billion loan in spite of the bankruptcy filing. CIT received a $4.5 billion dollar loan which will keep the company going during the bankruptcy proceedings and will not put the retailers at risk during the holiday season. CIT expects to emerge from this filing in a stronger position.

Many retailers have either gone out of business or cut back on their current operations as a result of the problems which CIT has had during the economic crisis. Retailers have depended on their support for factoring loans to purchase inventory. Many retailers, as a result are relying on their own money to keep their businesses open.

Should retailers set their own rates?

October 16, 2009

794358_atm_3Once again this debate has surfaced, but now the President and a new Merchants Payment Coalition are taking this issue very seriously. The retailers and business owners want the privilege of negotiating interchange fees with the banks.

In view of the recent new credit card Legislation, this issue will probably not go away. The Merchants Payment Coalition was formed to represent 2.7 million businesses and over 50 million employees in having a voice in the assessment of interchange rates. They claim to be helping to protect the interest of the consumer. The interchange rates are the rates that retailers and other business owners pay to accept credit cards at their establishment.

In addition to the Merchants Payment Coalition, President Obama and Representative Peter Welch of Vermont are conducting studies into the rates. This issue has been a long-standing one with the retailers, who believe their rates are too high. The current economic crisis has hurt many businesses and the retailers feel lowering or at least being able to negotiate rates with the banks could help their sales.

analysts have argued that if the banks are ordered to lower their fees, the consumers could face rate higher rates and fees on their credit cards. Australia has gone through this process and consumers did not save any money as a result.