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DTFuqua · October 4th, 2008

Credit card? whats a credit card? We don't need on stinking credit card. I pay cash (debit for long distance transactions) and I sell for cash. If I am gonna let someone have something that they can't afford to pay for now, I might as well give it to them. (thats why I quit doing computer repair)

greyhorsewoman · October 4th, 2008

Another alternative is 'prepaid credit cards' (I know that is really a oxymoron). Our system has worked hard over the last 20 years to turn us into a 'cashless' society and has been quite successful.

Personally, I use my debit card for most every expense, makes keeping track of business expenses much easier. (and verifiable in case of audit) ~~ don't have to worry about somebody not taking a check or having enough cash on me.

In the 'old days' ... we got catalogs and wrote out our orders and paid with checks. Delivery times were longer and we thought that was just the way of things. Now we can can instant payment and have item in mail same day for delivery in 2-3 days.

Wholesale merchants did phone orders and offered 'net 15' or 'net 30' to their regular customers. Merchants are reluctant to do that anymore, even if it saves them credit card fees. They want their money NOW.

We take credit cards online (can't imagine getting much in orders without it). Our vendor booth sales used to average 30-40% credit cards, now it's more like 50-75%.

Merchant fees are crazy. But the more volume you do, the 'less expensive' they are. I don't care WHAT they quote me, each month I take the total of what I'm charged and the total of what I processed and see what my REAL percentage is. On slow months, it can get up to 7% ... busy season more like 4%. I generally figure it averages out to $1.00 out of every $20 I make goes to credit card processing.

Oh, and while we still say it, only one out of about 20 customers will elect DEBIT when we ask Debit/Credit on their credit cards. Yet the difference to me is 25 cents flat fee as opposed to $1.00 per $20.

wormil · October 4th, 2008

Quote:

Originally Posted by knifemaker3


	Can you imagine, 7 banks in a town that small? And that is not counting the drive in branch of 1 of those banks. GEEZ!!!

Bank of America is still rock solid, far as I know; ditto for BB&T. But Wachovia, WAMU along with others are history.

One reason, maybe THE reason you see so many small banks is it has become a business to open a bank, offer incentives plus the customer service of a small town bank then sell out to a larger bank. Because in the banking industry the large banks don't compete, they just buy you.

Girlzndollz · October 4th, 2008

Our local community bank put an article in the local paper saying they are liquid, unlike the investment banks. They made sure to print they won't be loaning, and have not loanded money, to folks who don't have the means to pay it back.

They relayed the message particularly to small businesses and folks needing a mortgage, that they'll be there, and not to worry, they aren't a part of that whole mess, and since they didn't mess up during it, they are fine (for now.) It's all quite interesting as more and more of the smaller puzzle pieces are revealed.

So thanks everyone for the suggestions to alternate methods of taking payment if not by credit card, doesn't seem to be a whole lot of variety or options out there. I was most intrigued by that post by the person that offered an alternate to Paypal. Thanks again... see you later.

wormil · October 4th, 2008

I read today that only 13 banks have failed, yet 47 banks failed in 1986 and I don't remember there being such a crisis.

AustinJeff · October 4th, 2008

Quote:

Originally Posted by wormil


	I read today that only 13 banks have failed, yet 47 banks failed in 1986 and I don't remember there being such a crisis.

Yes, but in '86 the largest failure was about $30 billion. WaMu was over $300 billion.

wormil · October 4th, 2008

True, WAMU was a whale but there are web articles dating back three years warning of this exact thing happening so it wasn't exactly a surprise. I still believe Wall Street has been playing Chicken Little to pressure the government into a ill begotten bailout package. The bailout package won't restore the money lost in my IRA due to panicked selling and so has no real benefit to me and I'm guessing to the majority of Americans. The sure clue is that the 'crisis' has steadily evolved over the last two weeks. It was a sub-prime mortgage crisis, then a banking crisis, then an insurance crisis, now its a credit crisis. What will it be next week? Probably nothing because the bailout plan passed.

Earl Smith · October 7th, 2008

Hi,
I`m a little out of touch over here in Germany. When you guys over in the USA use a credit card to buy something, how long do you have to pay it off? Over here if I buy stock or material I have a maximum of 31 days to pay it off. ON every 15th of the month my card is cleared to zero from my normal bank account. No interest charged. That way everything is under control. We dont live on too much credit here and our world works OK.
Earl

wormil · October 7th, 2008

If you pay your balance at the end of the month you'll avoid interest charges; otherwise, you have forever to pay it off as long as you continue making the minimum payments. Credit card companies make money from people who carry balances so they are in no rush to make you pay it off.

Many responsible people do pay off their cards at the end of the month, some carry a balance but then others bury themselves in debt.

rrc62 · October 7th, 2008

Quote:

Originally Posted by wormil


	What will it be next week? Probably nothing because the bailout plan passed.

I think it will be a market crisis for a little while. The lack of faith in this bail-out plan is reflected in the market right now. I think once investors see that the market has reached a bottom, they will start buying again. Every day seems to end with another report of a market sell-off which tells me that investors feel that the bottom is still a ways off. A lot of people just don't trust the system anymore. That trust will take time to get back.

I think you're right in that the bail-out won't help restore what has been lost and it won't create jobs. It will basically keep these large investment firms and banks afloat until the bail-out money is gone. The system needs money to function. Without it we get what we have now. That money can either come from working Americans putting money back into the system and paying taxes or it can come from huge federally funded programs like the bail-out that just passed.

Rodney · October 7th, 2008

Thread note: some posts were moved out of this thread.

As the original post states, please, let's not focus on the political aspect of the question posed. To keep things on topic, let's try to focus on the alternative solutions to using credit if such a situation arose.

screenprinter1 · October 7th, 2008

I hadn't really thought about the possibility of a credit card freeze until reading this thread. I would be pretty shocked if something like that happened. I agree with some of the others that if it does happen we will probably have more to worry about that how to get paid.

I know that my partner who has been in the contract embroidery business for 25 years has not taken credit card/debit cards until last year. Surprisingly she still got paid for every job. For long term customers that have terms, she simply requests a check every 15 to 30 days and they send it. New or low volume customers, are simply due on receipt. They do not take nor does she ship until she has a check in hand. To her, credit card processing is just a perk, an easier way to get paid. In fact she's mad that she loses money on the deal because of credit card fees.

I have adopted many of her policies, and they are very effective.

I'm worried about two major things right now. I may not get paid from the customers who currently owe me money (I have a few of the bigger ones on terms). Second, those who do pay by credit card could contest charges for whatever reason and then I would be doing work for free.

wormil · October 8th, 2008

The only sure way to get paid is cash, cashier's check, money order or traveler's check. Paypal, credit cards and some debit cards can be disputed, checks can be canceled.

DREAMGLASS · October 8th, 2008

This credit crunch thing looks real serious at the moment, but the one thing I really don't understand though, is when they talk about industry grinding to a halt.

Everyone I know in business, is still busy making a buck. People are still working overtime and there are no big lay offs in industry yet.

Some days, it truly does seem like parallel worlds exist side by side.

Cash would be great, but those of us with online businesses and global trading, really wouldn't want a wad of foreign currencies arriving in a tattered envelope.

knifemaker3 · October 8th, 2008

I still think that the old tried and true methods are still the best. Cash is still king and just because you don't have a website doesn't mean you ain't going to make it big in this or any other industry.

I will still continue to take personal checks even though I realize that someday I will get hung. But, as long as I take 50% on order and collect the other at delivery, I will (or at least should) weed out people who will be a problem to begin with. Someone who is going to bounce a check usually will not do so without having the product in their hands. At least that has been my experience.

I will also continue to buy supplies online with credit cards simply because that is about the only way to buy from most of the suppliers I buy from. I don't like debit cards as the security isn't as good as with credit cards.

And Rodney, sorry for the bad post. I'll try and not get political in my post anymore.

Have a good day all!!!

Craig

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