card system

[JeffLange]

Did any read the article in the Journal about a month ago with the interview with the son of creator of the easy card system. I found it interesting that he was not using a card system in all his stores if they are so great. Makes you wonder................

[Howard]

I think the next "system" will be the use of ATM cards at laundromats, much the same as grocery stores, pharmacies, and others are doing now.
It is the "universal" card. Everyone carries one. It is "pin" controlled and the fees are relatively small.
So far, the holdup seems to be the low dollar and volume level of transactions, not the engineering. However, eventually the ATM market will become saurated and pervasive and the banks will need to consider the smaller transaction volume for continued growth.
I'd love to have my Wascomats hooked up to accept ATM cards. Maybe some day!

[Anonymous]

Howard, i think your prediction will be correct. We're headed to a universal card. But i don't want to wait 10 years for that to happen either.

As much as i think a card system is a good idea and worth throwing some cash at - i'm not convinced that now is the best time and or that the right product is available at the moment. As a secondary matter, i don't have 50 G's burning a hole in my pocket, looking for a home.

[pete f]

There was one system that did use people's credit and bedit card, but you loaded the card into the main terminal and it put the transaction amount on the strip somewhere. Then customers could use thier cards on each machine. They couls pay by the credit or debit to the main terminal. The compnay is bust, guess it messed up peoples' credit cards trying to use the 3rd portion of thr mag strip that was suppossedly not used. The only company that offers credit/debit from the main terminal is Greenwald I think. And then you have to use thier chip cards to run everything.

I agree with Howard, and hope it all happens sooner rather than later. A card system that would use regular credit cards and store cards would be a real business booster I think.

[Howard]

I don't have card systems. I also think an ATM card actuator/display would boost business.
I passed on card systems for many reasons and have yet to see the advantages claimed by proponents materialize.
I have tried contacting banks to see what it would take to setup a system, but have never had an answer. I get ignored and put off.

[Fred50]

Schlumberger (sp?) has a card system that accepts credit cards at the main terminal, but between the cost of the smart cards that need to be used and the credit card charges (2-4%) I hardly see an advantage of this.

In Europe, many countries use smart cards for a number of things - ID cards, medical info cards and for small
$ purchases.

The difference there is that the countries individual populations are much smaller than the US and there is much less competition in the credit card business.

Master Card and Visa (in the US) have aligned with major banks to develop two separate Smart Card systems and they have gone nowhere so far. Amex tried the Blue Card with an embedded chip, but I think that one is fading away.

Without a standard and a low or no cost way for merchants (newstands, small groceries, coffee shops, laundromats) to debit the customers' smart cards, then it is destined to fail.

10 years is a possibility, but I'm building a store now and I'll take my chances on the current technology. Keep in mind that most of our customers are not on the cutting edge of technology acceptance anyway!

[Anonymous]

Why on earth would anyone want to be forced into accepting credit cards and giving the big merchant banks a percentage of their gross. We are fortunate in this business that we don't need to take credit cards.

Even if you wanted to, most illegals and low income people don't have credit cards- they deal in cold hard cash.

My customers have no problem with my card system and it works great for me too. Instead of waiting for the banks to pay me, I am the bank and they deposit money before they spend it. There are few retail establishments that enjoy that sort of cash flow - why do you people want to create receivables?

[JeffLange]

Does anyone know why the Easycard inventors son who owns multiple stores does not use the system at all his stores. I think he would be the greatest advocate for the system if it was really worth getting...

[Anonymous]

Hi Jeff,

Do you know the guys name ? I'd like to contact him. It would be interesting to hear his reasoning, if this is true.

[JeffLange]

It was in the Journal about 2 months ago. It was a interview and he is located in Mass. I dont remember his name, but I'm sure one of these people on the board have copy of Journal locked in their safety deposit box.

[pete f]

I paid with my visa card in the post office today $6.48
I assume they do many small transactions.
The boost in biz it is always easier to spend plastic than cash.
When the day comes, I'll be there.
Look in line at the supermarket, nobody uses cash.

The debit/credit card opens up a whole bunch of purchasing power.

[MRH]

His name is Jeff Hooper (Boston, Mass) Sept 02 Journal, Page 43

[Fred50]

Pete,

Don't forget, we are small potatoes! I bet the Postal Service pays about .5% or less as opposed to the 2-4% that we would have to pay for the use of credit/debit cards. The big chain stores get a better deal as well and I agree that they would do less business without credit & debit cards.

Do you really think that laundromats would do more business if we took in credit / debit cards? I don't see it as a competitive advantage at the current rates.

[Anonymous]

I would think the postal service pays less, perhaps nothing. I think there is a Federal law that precludes them paying. That is why if you charge you Income Taxes you pay a 1.5 or 2% "convenience fee", because the IRS does not pay the banks.

The postal service deals with "upscale" customers, and there is merits to plastic, the same for department stores. Most laundromat customers, at least in my neck of the woods, don't have credit cards. It might be useful for WDF, but I have never had anyone complain about cash or checks.

[Kitty]

I thought a debit card is more expensive to the merchant if run as a credit versus a debit transaction? If run as a credit no pin is required, run as a debit a pin must be keyed in.

A debit card can be transacted as a credit card as the owner has "built in credit" on the card, the merchant can get screwed on this as the owner may or may not have the funds in the account when the transaction is presented for payment.

We do not do cards but if we did I would want guarenteed funds! That would be cash, or todays card systems that require cold cash to credit the mat card!

[Howard]

An ATM card is the same as cash to the merchant. The funds are deducted from the buyer's account immediately.

[Kitty]

The atm/debit card has no float for the holder, if the card is run as a debit the funds will be immediately deducted from the account. Run as a credit the funds are not immediately deducted, and could cause the merchant a sale that may not have sufficient funds to clear.

There is a cost differnence to the merchant too, just not sure what the percentage is. I think in the is area running a sale as a debit versus a credit will save the merchant 1- 1 1/2% on their costs.

[mike]

The paying if 1...2....even 4% would not bother me as much as a minimum per transaction fee. That might mean a buck on each wash !

[buddy]

Actually a Credit Card could be a great bargaining tool. A merchant who accepts credit cards have to pay certain fees on each transaction and they get payment couple weeks later.

I have had a situation where I walked into the store and I started bargaining on the price. The merchant would not budge, he pointed me to a sign on the wall "No Bargaining". I pulled out my credit card to pay for the merchandise and slowly muttered "If you give me 2% discount I will pay you in cash". He was quick to give me 2% off.

[pete f]

Hi Martin

welcome back.

[pete f]

Mark. Yes, I think business would be increased by the ease of use of plastic. How many people pay cash in the supermarket now? You are going to have a card store! Why? Ease of use.

Kirby: I know the IRS has a convenience fee, they ain't taking a break on the tax payment. But the Postal service is a sort of for profit but breakeven entity, I doubt the credit card processing centers are doing this out of the goodness of thier heart. I am sure they got some great rate, no fee.

Kitty: I do not know if thier is a differnce in fees, I think not. I had looked into it soemtime ago, no difference. I would think a debit card would be lower if anything, less chance of fruad. If you get "ok transaction number", you got cash comming to your bank account. I took cards for years at my tire store. Never a problem.

And Mike, yes the transaction fee has kept me at bay. The day will come, I will be watching for it. I was quoted in the range of 40 cent per plus 2% to a straight 5%. Still to rich, but given there is no real system set up to do it anyway, I hope for the technology time discount.....

[MRH]

Thanks Pete;

I've been here, just haven't posted much of anything. Covered by you and others. No need to say the same things over and over.