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A Question for Business Owners (and others with input)

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A Question for Business Owners (and others with input)

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Old Jul 26, 2011 | 2:38 pm
  #1  
Francis85
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A Question for Business Owners (and others with input)
Quhhg
Last edited by Francis85; Nov 24, 2021 at 10:10 am
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Old Jul 26, 2011 | 2:42 pm
  #2  
Jesperss
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Raise red flags?

I would say....yes if it's a big chunk of your overall revenue.
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Old Jul 26, 2011 | 2:43 pm
  #3  
Francis85
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That's what I thought...but in the end though, nothing illegal right? It LOOKS like laundering or something nefarious, but in the end its a net gain/loss of zero for the business. I think. Right?
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Old Jul 26, 2011 | 3:02 pm
  #4  
Stoughton
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Originally Posted by Francis85
The way I see it, there's no expense to the business (maybe credit processing fees);
Maybe? They don't get to run CC's for free.
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Old Jul 26, 2011 | 3:25 pm
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captaindomon
 
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Merchant fees
You would be losing the merchant interchange fee (approx. 2%, depending on how much volume you do), along with probably breaking the TOS of most of the processors.
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Old Jul 26, 2011 | 3:27 pm
  #6  
Francis85
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Sure, but they're fairly small and negligible. I guess then though we'd be getting into the realm of using business funds for non-business purposes, even if fairly minor. Alright. Could probably retire this thread.
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Old Jul 26, 2011 | 3:42 pm
  #7  
DavidAL
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Why would you cost yourself 2% merchant fee to gain miles? That doesn't make any sense. If you had no transaction costs, then yes it would work, but everyone has transaction fees.
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Old Jul 26, 2011 | 3:44 pm
  #8  
Jaimito Cartero
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It's against the rules of all the credit card merchants agreements that I've ever seen.

Many credit cards also charge you the percentage on both the initial transaction and the refund. 2% is very low for most small businesses, 3% or more these days is often the norm.
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Old Jul 26, 2011 | 3:53 pm
  #9  
satman40
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We do it all the time but things with our CC from our supplier and then sell them, been doing it for years,

I see no reason to pay 2% for any miles...have more than I need.
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Old Jul 26, 2011 | 5:04 pm
  #10  
DavidAL
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Originally Posted by satman40
We do it all the time but things with our CC from our supplier and then sell them, been doing it for years,

I see no reason to pay 2% for any miles...have more than I need.
If there was only a way I could pay all my suppliers with CC, I'd be rich! My 2 biggest suppliers only take ETF or check. Any suggestions?
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Old Jul 26, 2011 | 5:14 pm
  #11  
xp0
 
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edit until I check into things
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Old Jul 26, 2011 | 7:35 pm
  #12  
x712xdamx
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the 2% fees are really cheap when you use card readers to cover your minimum spends. 2% is only $20 for every $1,000 you have to spend.
That's all I'm saying about that

In other news, our main supplier (10-30k a month) is letting me pay with credit cards now and not charging me 3% anymore! Wooooo
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Old Jul 26, 2011 | 7:39 pm
  #13  
FlyerChrisK
 
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Originally Posted by Francis85
Sure, but they're fairly small and negligible. I guess then though we'd be getting into the realm of using business funds for non-business purposes, even if fairly minor. Alright. Could probably retire this thread.
2-3 cents per *redeemable mile* is pretty bad. You can buy them outright for that little and, if there's a promo going on, for cheaper than that.
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Old Jul 26, 2011 | 8:17 pm
  #14  
mnscout
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The only way I see it making sense is to meet bonus spending requirements.
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Old Jul 26, 2011 | 9:15 pm
  #15  
Francis85
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Originally Posted by mnscout
The only way I see it making sense is to meet bonus spending requirements.
This is actually all I really meant regarding this. Guess I could have been a little more clear. @:-)
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