[John Robertson]

He has resisted, but now that even fast-food joints are taking them, he's decided to go with the flow. He knows nothing about it, and asked me to "check with those people you know online." Every time I post a question on this forum about something practical--guns, cars, dogs, personal issues, whatever--I get a wealth of information back from the very generous Freepers.

So please help me help my friend re this issue. Are the rates charged negotiatble? What are the pitfalls? What suggestions do you have for the transition, and ongoing usage of a credit/debit setup? Is a dedicated phone line necessary? He has cable TV in the restaurant, so perhaps he could get a high-speed hookup going on (do they even operate these systems over cable?). One thing he's going to insist on is, the tips must be paid in cash. People might balk at cash for dinner, but most people don't have an issue with leaving cash for the wait person's tip.

Fire away. Andd thank you so much in advance.

[Gumption]

Figure it out your slef. ;^)

[TomGuy]

I have heard different financial institutions charge different rates for card services, so do some comparative investigating and compare rates/institutions/services.

[the_Watchman]

In Phoenix we are about to open a thrift store to raise funds for a men's shelter. We could use advice on how to accept credit cards, as well!

[TheBigB]

http://www.business.com/directory/financial_services/commercial_finance/merchant_services/credit_card_processing/

[Dubya]

When I was in a business that needed to take credit cards a long time ago. I went to my bank and they helped me get set up with a plan that was good for me.

[KoRn]

If I were one of his customers, him not accepting cards is a condition of doing business there. As a result I would bring cash when I would go to his place to eat. Of course, I'm sure other guests may not view it that way. If he wants to stay out of the plastic business have him look into getting an ATM in or around his place for the card customers.

[Alright_on_the_LeftCoast]

A dedicated phone line helps, but wouldn't be totally necessary. I've had many refer me to Costo... they have a merchant bank account (sep. from a business checking) that is set up for a fee that can vary... biggest benefit is the purchase cost of the credit card terminal. Those can be VERY expensive, but much cheaper to buy rather then rent! Terminals are specific to the bank interface, so they are typically bundled with the the merchant account.

AmEx and Discover are set up for just the merchant account and charge a monthly fee, but once set up, can be interfaced with the MC/Visa accounts that are done with the terminal.

When I did mine, bulk of expense was up front for account set up; then monthly fees vary... as so the percentage transaction fees. Not necessarily "negotiable", but worth shopping for the least costly percentage and/or transaction fee. Cost of doing business these days.

[Larry Lucido]

First check with the bank the restaurant has an established relationship with. They probably have the means to fix him up in a couple days.

I've been happy with Moneris (www.moneris.com). $19.90 a month for a terminal to accomodate two separate merchants (attorneys). We take only Visa and MC, credit or debit, and funds are deposited in a day or two. Transaction fee is around 2.5%. Your friend will need to take additional credit cards, I imagine (Diners Club, Amex, etc).

[Cold Heart]

Go to the bank they use for their business banking and ask them. Banks often offer package deals for their business customers. The bank will tell them everything they need to know. And yes, do shop around. I suspect tips would be larger if they took them on the credit card too, might be non-existant if they didn't.

[MARTIAL MONK]

A word of warning. I chatted with a CC service salesman this past week. He told me that he would not accept some clients such as small restaurants because CCs were the kiss of death for them. They often gain little incremental business but the habits of the customers would change. Where they expected to pay cash before they would start paying with plastic if it were available. Restaurants would get eaten alive with the fees on a larger portion of their sales.

I depends on average ticket, margins and sales gained by the addition but he hurt more small guys than he helped. He also complained about the fee increases by Visa and MC. I think he said five increases in 2 years.

[b4its2late]

With credit card companies, I don't think negotiable is in their vocabulary, but it won't hurt to ask. There'll be charges to every transaction for sure, but at least he'll have his money quick, deposited directly to his account, and it'll save him time processing that cash and handling it for the daily bank deposit.

A dedicated phone line is probably not a necessity at first, but over time as the transactions increase, he may want to add a line if he depends on the regular line for incoming business calls. If he doesn't get any or many orders over the phone and it's there just to have for an emergency, he can use a cell phone.

As far as the tips go, he might want to suggest that tips be left in cash, but now, most systems have a tip line to add before the final transaction has been sent through. See, when they swipe the card through, it goes out and gets an authorization to validate the card. The final amount goes through after it has been "cashed out". And of course the digital generation will want to use that option too...No need to carry cash these days..

[b4its2late]

And yes, it's not cheap and he might want to really do an informal study of the real business he might be missing or not missing before signing up.

[PistolPaknMama]

Tell him to call his bank and sign up for their merchant services. You can get a toll free number where you can call in credit card purchases without a dedicated phone line, but the bank will be able to answer those questions for him as to what equipment he will need.

If he makes me pay tips in cash then he won't get a tip. I don't carry cash, a lot of people don't. He might want to reconsider that. What's the reason he wants tips in cash, btw?

[MRMEAN]

Your friend is probably already being telemarketed by companies that prey on small businesses by offering overpriced equipment payments; plus no doubt mail solicitations. I looked into Sam's club last year and their package didn't seem unreasonable.

[old and tired]

Does he have a membership to Costco? They have a decent enough deal for visa/mastercard. I'm actually not sure if it's debit, but for most folks using their ATM's it doesn't matter if they use it like a debit/credit anyway.

[old and tired]

I just got off the phone with my son. He said the Costco plan does take debit cards as well.

He also said he's gotten offers from other sources. Some of them seem to beat Costco's price slightly but having never had trouble with Costco and there being no "sleaze factor", he's never bothered to change.