Are you a fast food lover?  There seems to be good news for you during a tough economy.  Some national chains are reducing their already low prices to encourage consumers to keep coming through the door and making the cash register ring.   For example, McDonalds is rolling out a dollar breakfast menu early next year and Burger King has already been advertising a $1 double cheeseburger.  These sort of items have been the dollar price range for over a decade or longer.   Honestly, I’m a little surprised as I thought their margins were already tight.  I assume they are hoping customers will buy other menu items that cost more and will make up for the slim profit margins.   If you are a fast food restaurant owner and are considering this approach, be sure to keep in mind all of your costs, including credit card processing fees. They can turn into a big percentage when dealing with very small purchase amounts. The bad thing is most consumers have no idea how much the restaurant is paying and if they did, I’m sure they would change their habits in some form or fashion.  It is probably because I work in this industry and know all to well what merchants pay, but I have always personally been a cash paying customer when paying small dollar amounts.

I think now is a good time to look back at your success for 2009 and give thanks to all of your vendors and customers that helped play a part in it.  Without your vendors, you wouldn’t have any products to sell.  Without your customers, you wouldn’t have anyone to buy them.  I do not know about everyone else in the credit card processing industry, but us here at Gotmerchant.com, we are very grateful. We are also looking forward to a prosperous 2010. The last few years have been tough on all businesses, including our industry. With some laws passing this year about consumer credit cards and all the talk or push for regulation from some merchants like 7 Eleven, we are glad and grateful nothing much has changed yet.  No one can predict the future, but as of right now, things seem to be looking on a more positive note.  Hopefully, 2010 will be a much better year for the economy as a whole.  So while you are spending time with your families this holiday season, give thanks and be glad your business survived another year in this tough economy.  If you are able to make it through this economy, think of what you will accomplish during a thriving economy!

ClickPayRent.com is a site that is designed to reward renters if they pay their apartment complex electronically instead of a check.  Instead of writing a check, they can pay with their credit card and receive reward incentives from their credit card company.  Some of the consumers that used the service has stated that it is nice to receive rewards for a bill you must pay anyways.  It appears that they charge the consumers $9 to use the service, which is not great.  By paying a fee, I do not see how any rewards from your bank would be beneficial as the service fee is eliminating any benefits.

On top of charging the consumer, they charge the apartment owner a percentage while covering the credit card processing fees themselves. ClickPayRent’s CEO made the comment that they struggled for a long time trying to find the right credit card processor. He mentioned it required extensive negotiations to find a processor that wouldn’t charge too much. I’m guessing he hasn’t ever heard of or was told about Interchange plus pricing. One thing surprised me is he found a provider that would allow him to surcharge the transactions. Since they are not a government entity, they are not allowed to add a surcharge to their transactions. Since it is all credit card based and cash isn’t accepted, I’m not quite sure if this would still fall under that rule or not, but it is a very fine line in any event.

Many small business owners are struggling today.  Some are working more than 60 hours a week.  One example is Nathan who built up his Sure Signs business for 18 years.  He was concerned with the level of involvement  he has on a daily business and what would happen if he would disappear.  His wife wouldn’t have a clue where to begin.  Nathan starting looking at franchises, Fastsigns in particular.   He took the plunged, invested $60K and reopened under the new name.  The following June, he has his best month ever.  Things have been slow during the fall, but Nathan said that was the best choice he has ever made.  Nathan recommends you do extensive research and once you make your decision and go with it, there is no turning back.  He also mentioned that since you are going with a big brand, that can come with some buying power when dealing with vendors, such as with your credit card processing companies. I do not know the details, but I’m sure franchisees like Subway have some unbelievable deals. I think merchants should also ask themselves, what kind of service will I receive for the kind of pricing I’m paying. It may be great pricing, but you may be telling yourself, “I got what I paid for.”