Are You Ready For This One?

Art Post (Guest)

I have a VAR I work with and have sold him some products that he resells. I treat this VAR as a wholesale account. There is minimal markup. He had been buying his stuff through Ricoh RMAP, but has purchased so much in the 45 days that they will not extend any more credit.

Ok, I told my customer this and he said that he needed to get the equipment ordered. The wholesale cost is around $17K, we do the MU and whats left over is a 50/50 split. My cut was some $650 (not much but the repeat biz is there).

So in reference to the order, he says to put it on a credit card, I get the number give it to my company (I even told my boss about it that day!). The credit is ok'd and thus the order is completed. I get a call late today, three full days after the credit card was processed from my boss explaining to me that I have to eat the surcharge that the credit card companies charge (in this case, he says $600), I said (too myself), naw I'm not calling the customer and tell him its going to cost $600 to use his card, I'll just cancel the order and make the call to the customer later with the problem.

Well here we go, my boss then says I have to pay the $600 either way, cause if we credit off the charge we still get hit with a $600 charge.

I had my own business for 12 years and we took credit cards, we had to give credits for items that we lost, never shipped and or returns. never were we charged for those.

Have these things changed in the last five years?!

Oh, one more thing, in the five years I have worked there I have taken one order with a credit card and was never charged the surcharge, plus we do not even have it in our company policy. (by the way with the MU and the commission split, the $17,000 order would net $4,000 profit to the company and $600 to me)

Am I wrong here??? Help!

12/2/036:59 PM

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Jayson GilbertsonDocusultant P4P'er

I would think you would need to talk to you boss and state the problem at hand and ask to hear his point of view. Then after you hear what he has to say figure out whether you will stay with him or go back to having you own business. I would think after you visit with him he will rethink the $600's
JG

12/2/039:30 PM

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GrahamDocusultant Elite P4P'er

Maybe he will split it with you???

12/3/0311:02 AM

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ALANG (Guest)

I sold credit card processing for 2 years here in Oklahoma. The way Visa/Mastercard set up their charges to us was: one charge on the total amount of the transaction (our cost was 1.464%) and the other charge was a per transaction charge (our cost was $0.15/transaction). Some companies will bundle the rate together and charge a flat percentage rate, most will split it up. However, on a large average ticket they will try to charge a percentage because they get paid more. I would ask to take a look at the statement your company received from their credit card processor for that transaction and make sure they did get charged that amount. If you are being charged a flat rate tell your boss to contact a Heartland Payment Systems sales rep. in your area for a lower cost. They will disclose all the costs associated that they get charged and allow you to see how much profit they will make on your account. It might help you in the future if it can't help you now. Believe me, I saw some business' getting charged an arm and leg - for example most of the restaurants I sold to I saved over $20,000/year in credit card processing charges - that is about how much money is getting robbed from most business' because they don't know they can get a lower charge. They are endorsed by almost every states Restaurant Association so you might call them and ask for the nearest rep. Unfortunately, once it is charged and batched through there is nothing you can do to get your moeny back. But if they hadn't batched the item out yet they could have just gone in and voided the transaction out before they batched out and you wouldnt have any charges besides 2 transaction fees. Let me know if you need any more help because I still service my old accounts and have to stay up to date on most of this even though I have been selling copiers for a year now. My email is: nicole1005@hotmail.com

quote:
Originally posted by Docusultant:
I have a VAR I work with and have sold him some products that he resells. I treat this VAR as a wholesale account. There is minimal markup. He had been buying his stuff through Ricoh RMAP, but has purchased so much in the 45 days that they will not extend any more credit.

Ok, I told my customer this and he said that he needed to get the equipment ordered. The wholesale cost is around $17K, we do the MU and whats left over is a 50/50 split. My cut was some $650 (not much but the repeat biz is there).

So in reference to the order, he says to put it on a credit card, I get the number give it to my company (I even told my boss about it that day!). The credit is ok'd and thus the order is completed. I get a call late today, three full days after the credit card was processed from my boss explaining to me that I have to eat the surcharge that the credit card companies charge (in this case, he says $600), I said (too myself), naw I'm not calling the customer and tell him its going to cost $600 to use his card, I'll just cancel the order and make the call to the customer later with the problem.

Well here we go, my boss then says I have to pay the $600 either way, cause if we credit off the charge we still get hit with a $600 charge.

I had my own business for 12 years and we took credit cards, we had to give credits for items that we lost, never shipped and or returns. never were we charged for those.

Have these things changed in the last five years?!

Oh, one more thing, in the five years I have worked there I have taken one order with a credit card and was never charged the surcharge, plus we do not even have it in our company policy. (by the way with the MU and the commission split, the $17,000 order would net $4,000 profit to the company and $600 to me)

Am I wrong here??? Help!