Saturday, February 21, 2009

Got a better rate on my merchant account!

My bank called me this week which I interpreted as bad news. I immediately returned the call. In fact, there was a problem. I had exceeded my limit.

Now I am talking about my merchant account for taking credit cards so apparently, I had forgotten, that when I applied I had been given an amount that I could collect monthly. And a few years ago, it was upped. Well, she informed me that I am now collecting on a monthly basis, about 30% above my limit.

"But, this is a good thing right?" I asked.

"Why yes, but it does need more paperwork. I need a balance sheet, income statement, and a filled in questionnaired and we can raise it."

I then played a little softball talking about how since I've gotten so much bigger and have such a low chargeback rate (way short of 1%), then I must be a more attractive client. She agreed and volunteered that she might be able to get me a better rate.

And she did? While it's hard to understand, it sounds like I've gone from 1.95% to 1.8% on a key expense line. I think I'm pleased but I will keep an eye on the overall expense as a percentage of sales because now that I know it's going to move, I wouldn't be surprised if they reclassify things in such a way that the net change is not, overall, in my favor.