The fee is based on two things, average amount per transaction and total volume for year.

When you apply for merchant status, banks evaluate your business based on its sales track record, type of business it is, your credit record, business’s credit record and your overall financial picture.

Apply for merchant status when you get your start-up financing. This accomplishes several things. First, it shows that you’ve thought ahead. And you will probably have customers that you wouldn’t have otherwise. In fact, some people don’t pay with anything but credit cards.

Second, you show you’re taking steps to minimize time and expense involved in recovering bad debts. If someone writes a bad check, for instance, it will cost you time and money to recover loss. If you swipe a customer’s credit card through a point-of-sale terminal, you can be sure you’ll get paid. The machine contacts issuing bank to authorize transaction and runs account numbers through a variety of fraud-protection procedures.

In part two of this series we will deal with objections you might get, which credit cards to accept, and check paying option.

Copyright 2004 DeFiore Enterprises

The assistant then relayed to me that "we are not accepting trade dollars at moment, but we have good deals for cash". She remained seated all that time. I didn't answer and walked straight out front door with my cash sitting in my purse. No matter how good their "cash" deals were going to be, if I was going to spend my hard-earned money anywhere, it definitely would not be with them!

The 'Colour- blind to service' Copy Centre I had spent thousands of dollars with a printing company over a couple of years. A couple of times I was told by one of staff, when they've been snowed under "Mary's too busy to speak with you at moment, I'll have to get her to call you back when she's got more time". Needless to say I didn't remain with them.

The 'Can't do that' Café We went to a local café which we hadn't been to for a while and I was told by waiter that "no, we can't do that". I wanted a particular type of sandwich which wasn't on set menu. I informed abrasive young waiter that "yes, you can". That got him scared and order I wanted turned up within 5 minutes.

Are Customers Important to Business? Of course they are. No customers, no business. Yet why are businesses deliberately driving customers away? It's ridiculous isn't it?