Riaan how does RKS do their online transactions? EFT only?
Riaan how does RKS do their online transactions? EFT only?
Roelof Vermeulen (Entrepreneurship in large organizations)
Roelof Vermeulen| Rock flaps south africa
EFT, cash deposit or cheque, but cheque clearance times need to taken into account. We used to be able, when payments were cleared by the bank before 9am in the morning, to get shipments to clients in Gauteng that very same day, but alas things not under our control has changed and thus we had to move it to next day delivery in Gauteng.
Rest of the country is still on 2 day delivery, and in extreme case (think small town in the middle of nowhere) it takes 3 days...
Funny enough, when I get stuff shipped to me directly, it's also next day, so the guys are really doing what I need them to do!
Hi there
Yes netcash offers a range of services which includes debit order, EFT payment and Credit Card services (terminal and gateway), and Credit validation services.
WRT "Originally Posted by Karenwhe
Last I checked you were not allowed to discount for EFT or vice versa, increase price for Credit Card. Maybe I am wrong, but there used to be some rules in regards to this. I am not sure what is going on now, maybe that has changed, or I was given the wrong the advise at that time."
That is correct. Banks do not allow that their merchants charge costs of transactions to the end user. Thus it is illegal and against your merchant agreement to increase pricing if someone pays by i.e. credit card. There are several merchants that do this and if 'caught' stand the chance of losing their merchant account at the banks...
Welcome to The Forum SA and thanks for clearing that up.
I have a question, though.
If a merchant gives a discount for paying by a certain method, for example for payment by cash, would that be a contravention of the merchant agreement?
Another one I see a fair bit of is a discount for paying by debit order.
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Now this is one person that should have joined a looooong time ago! You have no idea just how welcome you are NETCASH!
Roelof Vermeulen (Entrepreneurship in large organizations)
Roelof Vermeulen| Rock flaps south africa
Welcome Netcash - My super hero debit order processing and credit card gateway provider !!
Watching the ships passing by.
I wish I could use a Super Merchant ... but its not going to happen. From my research, it takes from 7 - 14 days to get the money that has been paid to you by credit card (Whereas I need it immediately to buy the products and send them). Also, I will be marking up some items such as laptops as low as 4%, so I will be making a loss (I do not want to show the higher price and then discount for cash, because then I will seem expensive). If you have an online computer or electronic business, and you don't have a brick and mortar store ... then I think a super merchant is a bad idea for you. If you are selling non-physical goods, or you keep the goods in stock, then it should be fine.
Hi there all !
I am going to try and answer all in one post.
There is no problem with giving discount for i.e. cash payment. The issue comes in where some merchants advertise a price lets say R 10.00 for a pen. Then if you pay by credit card they want to charge you x% extra for paying by Credit Card...
The rules state that what ever price you are advertising - you have to charge that price... Thus you may not charge MORE is someone pays by credit card.
The flip side of the coin is that some merchants increase all the prices by ie. 3% and offer discount if you are paying by EFT/CASH. Nothing wrong with that. You must just not increase an advertised price if someone pays by credit card to cover your costs. Remember that unless you have 'cash turnover' you might also incur cash deposit fees...
There are no 'rules' WRT minimum amounts - some guys prefer to not allow purchases for smaller amounts (ie. less than R50 must be cash) only to cover their costs WRT the credit card transaction. This (in my personal opinion) is a bit unfair towards the consumer though. The cost per transaction is usually a per transaction fee and a percentage fee - sometimes only the one or the other (mostly the % value as commission). All depends on how you have negotiated...
eitai2001 - I agree but all depends on how you negotiate - industry standard is 10 days but depending on volumes and values you can be settled even the next working day...
Thanks to Chatmaster and daveob - hope that we can make some positive contribution here.
Kind regards
Donovan @ NETCASH
Last edited by NETCASH; 25-Feb-08 at 09:14 AM.
Thanks, Donovon. That certainly cleared up my queries very well.
BTW - Do you guys also handle debit orders?
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