The Framers Forum

At the end of this month, the use of cheque guarantee cards will cease and I'm wondering what this will mean for me and my business. I don't have a credit card terminal and currently can only accept cash, or cheques as the means of payment in my shop. I don't suppose that I'm the only one thinking about the end of cheque guarantee cards at this time.

How is everyone else addressing this issue? Any comments?

Will a card terminal pay for it's self in increased sales? What are the advantages / disadvantages?

Get a card terminal and put a few % on your prices. If the customers don't like it inform them it is the banks decision to end the cheque guarantee system not yours and offer them a few % off if they prefer to pay cash.

That way you are not out of pocket.

There is no option but to use cards or insist on cash only from 2015 when cheques will be phased out, but you can accept cheques until then but no guarantee.

We made the decision to go card just over 12 months ago and we think it has increased turnover. Certainly 70% of payment is now by card and no hassle with continuous trips to the bank/post office. Most banks make charges for deposit of cheques and cash anyway so you will find it a lot easier. Also we now get the impulse buy where someone likes a picture and can now put it on his card. pyschologically much easier than writing out a cheque. Also with corporate clients we are moving to BACS transfer rather than cheques.

On our website we sell only by Paypal at the moment and we think this is hampering sales because we asked the web developer to put in some coding so that we could see where the customer dropped out for sales. Nearly all were at the check-out.

Needless to say we are upgrading the website to accept all cards soon.

As Jonny says, put a few % on your prices to cover your charges and then you are on a winner

Steve

My terminal costs around £180pa.

The nearest bank branch is 16 mile round trip. That's 5 quid petrol + shut shop for 1/2 hour.

No contest really.

One thing about cards is that if people are buying on impulse and they have a card, you might get a sale. If you don't know them, taking a cheque on trust is unwise. If they have to go to the nearest cashpoint they most likely will change their minds on the way and keep going. If you gain one tasty sale this way it pays for the terminal for a year.

I don't know many people that carry a cheque book these days!

I would have thought cards are much more convienient for both you and your customer. Although, depending on the size of transaction and payment method, there is an additional cost, the plus side is its your account 3-5 days later as cleared funds.

There's deals to be done with credit card terminals on both monthly rental and for the costs of taking money. I'd advise to shop around .
The alternative is in 2015 to accept cash only and although perfectly legal,it could raise a few eyebrows!

Hi Mark. You pay credit card companies by average transaction value and with our industry usually generating higher average values then many other small retailers, you can get some good rates. Getting my little ad. in for the Guild, we offer some excellent transaction rates for members and even if you don't use the Guild's credit card supplier, you can play one against the other when negotiating rates. The annual savings could more than pay for your very reasonable membership fee!! I pay a very low percentage. You have to go credit card in the end because it's already been said in this thread that c/c will account for the vast majority of your business eventually

Being a commercial framer I do very little over the counter which warrants a machine but I still get some cheques. So this is a bit of a dilemma do I get a machine and make more customers pay by card and drop their credit accounts, or do I just accept cash and credit accounts? Might improve cash flow if I got a machine.

These days, the only checks that I receive are from businesses. Personal checks are a thing of the past.

Cash is a rare item as well. Receipts are at least 85% credit cards(signature required) or debit cards(check cards that require a PIN number).

Yes Mark, you need a terminal!

I will accept payment in any way I can get it, but have only seen 2 cheques in the last year. Cards are the way forward. Saves so much hassle, not having to go to the Bank.

After quite a bit of research I went with paymentsense.co.uk

I've been looking at these seems like a good deal to me portable & no landline required
http://www.nmtf.co.uk/index.php?id_cpg=125
And you don't have to be a market trader.

I got a terminal in March this year, I used Federation of Small Businesses to get mine with Streamline, no set-up cost, Free terminal rental for three months , no minimal charges and the rates are quite good. The result is more customers are paying up-front when they leave their work, also I have found that my Internet customers now ring to pay with their cards rather than PayPal or Google Checkout. The payments are in the bank sooner 4-5 working days, to tell you the truth I wished I had done it earlier .

Steve

Too true Steve. I use Streamline as well and they have been very good with excellent rates - well no worse than anyone elses anyway. I also got an even better deal when I decided on e commerce with them

I dont like cheques now as I have to go to the bank so I tend to leave it weeks which is not good.

Steve

most of our customers are quite elderly - 90% cheques ! but we'll find a way around it!

Being a commercial framer I do very little over the counter which warrants a machine but I still get some cheques. So this is a bit of a dilemma do I get a machine and make more customers pay by card and drop their credit accounts, or do I just accept cash and credit accounts? Might improve cash flow if I got a machine.

I send out all my invoices with my BACS details on to my commercial clients. Most now pay me by this method and the advantage of this is there are no bank fees for either the client or yourself. I also pay my invoices this way with my suppliers and auction houses I purchase from and is becoming the preferred method. If you don't already, it may be worth popping the details on now to get them used to seeing it.

Cheers

Nick

A lot of my payments are by cheque so guess I am going to have to move with the times.

To anyone with a terminal....

Whats the monthly rental and whats the transaction fees you pay and any other overheads with them.

Thanks

Chris

You should be able to rent a terminal from £15.00 + vat / month

The charges depend on your average spend and your turnover - We pay 12p for a debit card transaction and between 1.3% - 1.8% depending on the credit card with bank of scotland .

I was contacted by In Touch yesterday who claim to be able to beat the above prices- I know nothing about them but here's a link anyway http://www.intouchrs.co.uk/

We have just swopped from Streamline to Lloyds as we were offered some great rates. We pay £14.00 + Vat per month for each of our terminals.

Cheers

I have a mate up the road from me who steadfastly refused to have a credit card terminal. I used to take the micky out of his old fashioned approach to business. He eventually changed his mind - got a cc machine in and saw his turnover climb dramatically.

My advice to any framer would be to get a cc terminal and with that change also start to take the full payment for the order in advance - so much easier to do when your taking payment via a card. Cash still has a reality and handing over readies always seems to make the transaction real - Cheques I hate as very few transactions are within the guarantee limit and I have to say from personal experience the most potentially prone to those without means taking you for a ride.

Be aware that credit cards do have some obligations and it sometimes surprising how you can get caught out. I had a very elderly customer who decided when looking at his credit card statement that he hadnt the first clue why he might have used a picture framer - so complained to the credit card company that the said framer had fraudulently used his card details. Burden of proof is upon the business to justify the charge - so with the use of this sort of technology goes the need to keep good records - and all the credit card paperwork. ( its only happened twice to me - same chap both times).

Up to a couple of years ago I used the old knuckleduster machine to process cc's. It was OK as I sometimes went months without do a cc sale. But the bank clearly was trying to discontinue the paper stuff as the processing charges suddenly became exorbitant. Plus the staff at the bank had to get the instruction book out whenever I paid a little bag of slips in (errrr.... that's your copy, we keep these two - oh wait a minute you want the blue one ...... I think..... ). I though at one point that you had to rent a terminal from your bank. Not so. it's funny as my bank manager (whoever it was that week) called in to sell me a terminal about 1/2 hour after I signed up with an independent provider. At £10 a month less.

It's also easier to do CNP payments with a terminal.

My wife went to a gallery today to present her work (Ltd Ed prints) which they accepted and during her discussion with the manager/owner discovered they only take cash/cheque. I thought this very strange for a town centre shop that must get a lot of passing trade and impulse buys.

Presumably it will be cash only after the end of the month as I can't see them clearing cheques and asking the customer to return in a week.