Accepting MasterCard or VISA as a merchant does require an investment on your part.
The cost to you depends on your choice of processing, the average ticket sale you have, and your sales volume. A discount rate is assessed with a formula using your average ticket sale and sales volume along with the processing fees charged by MasterCard/VISA.
Processing your sales can be handled in at least two different ways, which are defined as follows:
Electronic Draft Capture
Authorization Terminal
Printer for sales transaction
Transmit batch each day at your convenience
The cost of an authorization machine is approximately $275.00 and a roll printer approximately $350.00. Realizing an investment of $625.00 is not a small issue, the cost can be spread over a six month period, with the draft coming out of your checking account each month. You can upgrade voice authorization equipment to electronic draft capture for the additional cost of the printer.
The equipment investment is one time, but the discount rate is continual; therefore, the lower discount rate will offset the equipment purchase cost.
It is Peoples State Bank goal to make it cost effective for you to accept MasterCard/VISA in your business, as our society is using plastic money increasingly for their purchases. Along with being convenient for your customer, accepting MasterCard/VISA should curtail the need for you to carry any receivables on your books.
If you have no history for average ticket sale, the discount rate will be established using a similar business, and at the end of six months, when history has been established, we can reevaluate the discount rate.
After approval of the application and an-on-site visit, it will take approximately 30 days to be on-line with our processor, Equifax.
Business manager is a complete system by which the bank purchases your existing receivables on a discounted basis and takes over the responsibilities for billing your customers and collecting their payments.
You get your money immediately! And because Business Manager enables you to offer terms to your customers, you may increase the volume of your business as well. It's a "win-win" situation for both you and the people who do business with you.
Here's how Business Manager works.
With Business Manager, the bank buys your receivables up front. When we assume your billing functions, you'll receive money in your account for your present book of receivables. So you begin the process with cash covering most everything that is owed to you. You can use the proceeds from Business Manager to reinvest in your business, take advantage of suppliers' discounts, pay off existing debt... whatever helps create additional profits for your business.
On new invoices, you receive immediate cash for charge sales, less a bank service fee and a reserve for delinquent accounts.
Does Business Manager make sense for your business?
Most businesses want to improve their cash flow. Some want to avoid the hassle of handling their own billing. Every business would like to have more time to get back to doing business. Whatever the reason, Business Manager is designed for all types of businesses, from manufacturers to retailers, from doctors and dentists to wholesale distributors.
If you'd like to see a demonstration of the Business Manager receivables management program, at your office or at the bank, just give us a call at 717-746-1011 or send us a E-Mail message through |TELL US/ASK US|.
Auto Cash Manager or Total Treasury Manager (TTM) is Peoples State Bank's cash management tool that allows you, our business customer, access to your account information, at your convenience, via Personal Computer in a secure controlled environment. In association with this product we also offer the ability to automatically invest your excess balances in an overnight investment account with Federated Investors of Pittsburgh. Some of the features Auto Cash Offers are:
Reporting
Transaction Initiation
Automated Reconciliation
Extras