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Credit Card Processing

My accountant received the letter about the 1099, She said basically anyone you pay over $600, your suppose to be giving them a 1099, like landlord, contractors etc…
 
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BCPizza:
I use heartland merchant services and $20,000 in a month runs me right around 400. You should probably consider shopping around. On that same note heartland bases your rates on how much CC business you are doing. We started out at one rate and as we got busier and were processing more cards we were able to get a lower rate. All we had to do was call our rep and say hey business is booming can we negotiate a new rate?
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Hey BCPizza,

What percentage of your cc sales are taken over the phone? I do about 20-25k a month in credit card sales as well, but about 75% of that is over the phone sales. And I’m paying about $1100 a month! PM me if you get a referall bonus! 🙂
 
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Daddio:
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debbie9025:
what I will do however is as soon as a customer pulls out a credit card, I will offer a 2% or 3% discount for using cash or check.
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If you read your merchant agreement there is likely a clause against doing this.
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Actually, on the contrary. Visa, MasterCard, and American Express all have clauses explicitly allowing merchants to offer a discount with cash. But of course you should always read your agreement.

You can view that information here: Discount With Cash | FAQ
 
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DiscountWithCash:
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Daddio:
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debbie9025:
what I will do however is as soon as a customer pulls out a credit card, I will offer a 2% or 3% discount for using cash or check.
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Be very careful with this. If you read your merchant agreement there is likely a clause against doing this. If they get nasty with you, there is a possibility you will lose your account and not be able to get another one.
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Actually, on the contrary. Visa, MasterCard, and American Express all have clauses explicitly allowing merchants to offer a discount with cash.

You can view that information here: Discount With Cash | FAQ
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I would still make the effort to verify the contract you have signed. I know the ones in Canada specifically do not allow a difference in the cash price compared to the credit card price.
 
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DiscountWithCash:
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Daddio:
I would still make the effort to verify the contract you have signed. I know the ones in Canada specifically do not allow a difference in the cash price compared to the credit card price.
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I’m sorry, but that is also wrong. I’m not sure where you get your information, but you might want to review the Credit and Debit Code of Conduct for more information specific to Canada.

(the above link is linked directly from Visa.ca)
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I followed my own advice and carefully read the entire contract which I have with the merchant service provider. To say I am wrong to give the advice to verify their contract is not only bad advice on your part, it is very annoying, (especially coming from a user with only a few post on this board.)
 
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Hey calzone kid we dont take any cards over the phone. we have a wireless unit that the drivers take with them on deliveries.
 
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Ok come on guys…I take advise and knowledge from everyone. I have read and always do read my contracts I sign, I even have a business relationship with my processor rep. We as in business owners here in MI are allowed to offer cash discounts for using cash versus credit. Im sure Canada has very different rules when it come to things like that. My rep came in and talked with me personally & said that I can even stop taking debit as a form of payment and just take credit, cash or check without any adverse affects to my contract or account. I will actually save money by taking cash, becuase I will not have to pay the fees attached to debit transactions, my fees that include NYCE, PULSE, STAR, INTERLINK, MAESTRO, as well as monthly debit transcation fees, pin debit fees, and so on. So with that being said, like I said in my earlier post, Im just blowing of steam from receiving that letter stating that they are going to start charging a percentage fee ontop of a flat rate fee for debit cards. I actually spoke to a journalist from the Bloomberg news in New York, and he said that the reason for the percentage fee being added is because when the regulation on the .12 per transcation takes effect, they are making up for the money they loose by adding the percentage fee.
 
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Daddio:
To say I am wrong to give the advice to verify their contract
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If you inferred that from my post, then I’m sorry, that was not my intention. Of course people should read their own contracts. I don’t think anyone would disagree with that advice.
 
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debbie - I’m not sure that .12 cents per transaction law is ever going to go into effect. I heard yesterday they were trying to delay it until next year. There is a lot of misinformation floating around, I just stumbled upon some websites yesterday that basically said that merchants would make “windfall profits” with the new law and that consumers would end up paying for those. What a bunch of crap.
 
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DiscountWithCash:
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Daddio:
To say I am wrong to give the advice to verify their contract
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If you inferred that from my post, then I’m sorry, that was not my intention. Of course people should read their own contracts. I don’t think anyone would disagree with that advice.
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My first post indicated to proceed with caution. and you posted:
Actually, on the contrary.
My second post recommended to make the effort to verify the contract you have signed.
I’m sorry, but that is also wrong.
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How could I not infer that? You coming on and blasting 2 of my posts as being incorrect, inaccurate or wrong with your first 2 post on the forum gives me a feeling you are here to push an agenda.

In neither of the posts did you acknowledge that the advice to read the contract held with the merchant service provider might have some bearing on the legitimacy of either of your posts.

Your advice could very well get a merchant suspended if the information you are linking to does not apply to their particular contract. I have seen it happen and it is not pleasant for the merchant.
 
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Daddio,

Parts of new financial reform laws that went into effect in the US late last year specifically prohibit that “old style” “can’t charge a different price if using credit vs. cash” language in merchant agreements. Applies to new and old agreements. Therefore, someone reading an agreement they signed, for example, in May of 2010, may be reading incorrect information.

Basically, in the US, you can offer a discount for cash now under most circumstances.
 
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Daddio:
In neither of the posts did you acknowledge that the advice to read the contract held with the merchant service provider might have some bearing on the legitimacy of either of your posts.
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I certainly take the blame for quoting your entire post as wrong, rather than the specific errors. I have edited my posts to only include your errors and to highlight your good advice.

Sorry for the confusion.
Registered Guest:
Basically, in the US, you can offer a discount for cash now under most circumstances.
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For reference, here is the U.S. Department of Justice press release.
 
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