Nature of your business?

	Percent	Count	Answers
	0.0%	0/90	14 - Non-metallic Minerals, except Fuels
	6.7%	6/90	20 - Food and Kindred Products
	2.2%	2/90	22 - Textile Mill Products
	3.3%	3/90	23 - Apparel and Fabricated Textile Products
	1.1%	1/90	24 - Lumber & Wood Products
	2.2%	2/90	25 - Furniture & Fixtures
	6.7%	6/90	26 - Paper & Allied Products
	7.8%	7/90	27 - Printing & Publishing
	18.9%	17/90	28 - Chemical & Allied Products
	0.0%	0/90	29 - Petroleum & Coal
	2.2%	2/90	30 - Rubber & Allied Plastic Products
	0.0%	0/90	31 - Leather & Leather Products
	3.3%	3/90	32 - Stone, Clay & Concrete Products
	3.3%	3/90	33 - Primary Metal Industries
	5.6%	5/90	34 - Fabricated Metal Products
	2.2%	2/90	35 - Industrial and Commercial Machinery
	7.8%	7/90	36 - Electronic & Electronic Equipment
	0.0%	0/90	37 - Transportation Equipment
	2.2%	2/90	38 - Measuring and Analyzing Instruments
	1.1%	1/90	49 - Electric Gas & Sanitary Services
	5.6%	5/90	50 - Wholesale Durable Goods
	5.6%	5/90	51 - Wholesale Non-durable Goods
	1.1%	1/90	73 - Business Services
	11.1%	10/90	- Other
	100.0%	90/90	Summary

Do you accept credit cards?

	Percent	Count	Answers
	59.6%	53/89	Yes
	40.4%	36/89	No
	100.0%	89/89	Summary

Do you accept credit cards for purchases over the internet?

	Percent	Count	Answers
	19.8%	17/86	Yes
	80.2%	69/86	No
	100.0%	86/86	Summary

If Yes, what processing software do you use?

• IC Verify
• Paymentech
• custom built, but is a secure site
• IC VERIFY
• ICOMS
• Manual authorization
• POS Partners
• JD Edwards
• ICVerify, our system is primarily manual
• ROI MAPP
• ROI MAPP
• POS Software
• Nova Information systems (cardlinx)
• Nabanco
• internal
• none, we lease terminals from the bank
• IC Verify/Cybercash

Do you use credit cards for consumer or business to business purchases?

	Percent	Count	Answers
	28.9%	26/90	Consumer Purchases
	48.9%	44/90	Business to Business Purchases

Do you use a credit card processing company?

	Percent	Count	Answers
	65.3%	49/75	Yes
	34.7%	26/75	No
	100.0%	75/75	Summary

If Yes, who?

	Percent	Count	Answers
	33.3%	30/90	MC
	37.8%	34/90	Visa
	26.7%	24/90	Amex
	13.3%	12/90	Discover
	15.6%	14/90	Other

When do you process the credit card?

	Percent	Count	Answers
	45.3%	24/53	With the order
	26.4%	14/53	At shipping
	28.3%	15/53	After shipping
	100.0%	53/53	Summary

If after shipping, how many days?

• WITHIN 5 DAYS
• next day
• at discount period
• 1
• 1
• next day
• accept also after shipping, so far as much as 60 days
• 30
• 1
• Next Day, usually
• same day
• Next day
• NEXT DAY
• 0-90 days
• The next day
• several days - customer can call in cc payment during terms period

Do you accept a credit card payment " after the fact"?

	Percent	Count	Answers
	53.4%	39/73	Yes
	46.6%	34/73	No
	100.0%	73/73	Summary

What fee per transaction do you pay to the credit card processor?

What is your credit card transaction volume per year?

What is your credit card dollar volume per year?

What is your settlement date with the credit card company?

Do you carry the credit card transaction on your receivable system?

	Percent	Count	Answers
	61.3%	38/62	Yes
	38.7%	24/62	No
	100.0%	62/62	Summary

What are the accounting entries you make on a credit card transaction?

	Percent	Count	Answers
	44.7%	21/47	Debit to A/R & Credit to Revenue
	25.5%	12/47	Debit to Holding Account/Cash & Credit to A/R
	19.1%	9/47	Debit to Cash & Credit to Clearing Account
	10.6%	5/47	Other
	100.0%	47/47	Summary

Please describe other accounting entry.

• The accounting entry will depend on the type of sale. If a credit card is used to replace a CIA order, there are revenue implications to the order. If it is paying off a balance, there are no revenue implications.
• When cash arrives, credit A/R and debit cash
• 2. Credit Customer Account/Debit A/R Procurement Account
  After payment received from Credit Card transaction:
  3. Credit A/R Procurement Account/Debit Cash
• unknown
• Invoice is interfaced nightly into our AR system: debit to AR and credit to revenues. We anticipate once the transaction is authorized we will apply the cash to the invoice in AR. We are in the process of setting up the availability to our customers. We haven't started processing credit cards yet.
• We take credit cards at our outlet facilities. We do not credit them till the end of the month.
• Transaction is set-up as AR for the time between order shipment and settlement. When transaction is settled and funds come in, we expense the merchant fee to a separate g/l account and clear the full amount of AR.
• Treasury processes a Credit to Holding Account. AR then processes a Debit to Holding Account and a Credit to Receivables.
• We Debit the customer A/R account and Credit Revenue when the goods are shipped. That night we run a batch process which closes the entry on the Customer A/R acct and Debits a Holding Account. When payment is received we credit the holding acct, debit cash and debit a Credit Card Fees acct which is treated as a reduction in sales.

Do you mark up your product or service to cover the credit card fee?

	Percent	Count	Answers
	6.9%	4/58	Yes
	93.1%	54/58	No
	100.0%	58/58	Summary

If No, What department or area of your business absorbs the fee?

• Business Finance
• whole sales departments
• SALES
• Other Expense charged to the P&L
• Administration
• Treasury
• CREDIT DEPARTMENT
• Corpoate
• sales
• Banking
• G&A
• general accounting, bank fees
• banking charges
• TREASURY. GROUPED WITH PROMPT PAYMENT DISCOUNT
• Distributed through business allocation
• Finance
• sales
• credit at the moment. Trying to get sales to pick up cost
• Sales
• Corporate Treasury
• Customer Service
• A/R
• The department which gets the sale
• sales
• corp sales
• Finance
• TREASURY
• Treasury
• Bank Charges
• general
• WE GIVE EITHER LESS DISCOUNT OR NO DISCOUNT TO CUSTOMERS
• treasury group
• The outlet stores.
• Business Units (sales) are vouchered monthly for the charge based on their dollar volume of transactions.
• Product Line/Plant
• Bank fees
• sales
• corporate expense
• Customer absorbs the fee.
• sales
• Operation
• Yes on Consumer No on Business
• The fee is booked as a reduction in sales to the individual business unit.

Does the credit card processor give you adequate information to reconcile transactions and their fees?

	Percent	Count	Answers
	92.3%	48/52	Yes
	7.7%	4/52	No
	100.0%	52/52	Summary

If No, what are the issues/problems?

• Some timing issues, incomplete breakdown of transcations by type
• Not enough detail information. They lump all data together
• This is one of our concerns - see comments below.
• We will be offering to our customers the option to pay by credit card soon. At this time we are working on ironing out a few details before going live.
• ADDL LINE ITEMS BESIDES THE % AND TRANSACTION FEE. I DON'T KNOW WHAT THEY ARE
• Process is manual and we are looking to introduce substantial automation in the near term.

Does your company actively attempt to sell with a credit card instead of terms?

	Percent	Count	Answers
	23.5%	16/68	Yes
	76.5%	52/68	No
	100.0%	68/68	Summary

Does your company discourage credit card use?

	Percent	Count	Answers
	27.9%	19/68	Yes
	72.1%	49/68	No
	100.0%	68/68	Summary

Has using credit cards enhanced your collection effort?

	Percent	Count	Answers
	61.1%	33/54	Yes
	38.9%	21/54	No
	100.0%	54/54	Summary

If Yes, please explain.

• Has spead up collections from accounts which normally have significant paperwork problems.
• Accepting credit cards is more efficient for us than the effort involved in CIA sales.
• SOME NET 30 DAY CHARGE CUSTOMERS ARE PAYING WEEKLY NOW
• No credit or collection costs incurred.
• Reduction of terms and collection cycle
• COD becomes easier for accounts on hold
• A large number of customers settle their account via credit card to take advantage of "points" offered by the credit card companies
• we have pushed the discount issue and the profit associated with it.also, many past due accounts pay via the cards.
• Decrease in DSO. Faster credit release - no credit analysis needed which increases order processing time. Increase in cash collections.
• No data, but collection acccount can use CC to pay balances that may not otherwise be collected
• Minor effect on days to pay with small COD customers.
• Lowered DSO and improved cash flow
• Credit card collections eliminate the check float and the need to follow up on accounts who have broken promises to remit in a timely manner. Secondly, credit cards have helped increase sales by making it easier to make the sale....Credit cards are just another tool to be used in our jobs.
• Government has been a plus in collections.
• Money collected sooner as some customer buy product with a credit card giving airline mileage. We have spent some time collecting when the card holder thinks they are cute and disputing the charge.
• Reduces disputes and we get paid 28+ days earlier.
• minor
• Immediate payment allows for release of pending orders. DSO
• Federal govt reduces red tape. Facilitates process for customers on Cash with order terms.
  Use for non-direct customers on service & parts orders.
• allows us to make sales to questionable customers particularly on small orders that otherwise would be potential collection problems
• WE COLLECT SOONER ON SOME ACCTS
• Special group of customers actively use cards for mileage etc. and this is due to our competition using it first. We also enhance our cash flow, reduce risk by offering a hefty discount to pay early.
• There has been some impact on DSO, but the program is somewhat limited at the moment. Along with automating the program, we are looking to ACTIVELY promote credit card usage.
• In some cases it does when a customer orders parts or other items over the phone and payment is made up front. Assists in some cases clearing up receivables.
• Eliminates small, one-time orders so that colleciton efforts can be focused on larger accounts. Gives slow payers who may face credit hold issues another option to pay their accounts off and get their order released.
• Cuts operating costs by not shutting services off.
• Helps sales to marginal accounts
• Avoids CIA Check risk and processing, COD risks, used as a prompt payment mechanism
• Helps us sell dead beats
• The use of credit cards has prevented us from having to chase down small dollars from infrequent buyers.
• receive payment within 10 days

What advice would you give to a company that is beginning to accept credit cards

• KNOW THAT IT WILL AFFECT YOUR BOTTOM LINE, THE CREDIT CARD COMPANY AGREEMENTS INCLUDE THE STATEMENT THAT YOU MAY NOT INCREASE THE PRICE TO CREDIT CARD CUSTOMERS ONLY.
• Make credit card sales integral with your operating system to eliminate manual efforts
• Our volume is very small. We se it only as an accomodation and do not recomend it based on our very limited experience.
• Try to avoid control accounts. Control accounts make the job of reconciling the transaction very difficult. Charge the business units/divisions back for their credit card processing costs. Make sure that people understand that the the back room processing presents the most room for improvement.
• Go for it. Turn inventory to cash.
• Protect your company from fraud and pick a good processing bank.
• to advertise the issue on printed documents they send out. to actively have the credit depart. push pymt via this method.to push their banks to give the best discount rate possible and that the sales will be higher than they anticipate.
• Insist on on-line service from your bank (preferably web based if possible). Negotiate discount rate for large volume orders and set rates according to total dollars, i.e., increase in dollars should result in a decrease in fees. In-house: process your cards daily if possible, weekly at a minimum to ensure cash collections from the cards. Watch your bank fees and how they are calculated. Then ensure your business practices don't create extra unnecessary fees, i.e., get approval codes the same day your transaction will take place - saves money.
• We are currently looking at this option. Although we have no active experience to share, we would very much appreciate a copy of the results. I'm sure it will help us in our investigation. Thank you.
• to initially by very tight on review, the frauds seem to know new sights and hit them hard to see if they are checking
• Make sure that cost is covered by price or by reducing other cost. Start small and build it after you've established your procedures and protections.
• Know your customers needs and require card usage whenver possible.
• Have an integrated process
• Start slow but gradually incorporate credit cards onto applications, collections., etc.
• Install code so the batch file cannot be duplicated or sent twice on accident.
• Set time frame, when credit card can be used, for different terms; discount, Net 30 etc.
  Set MAXIMUM amount acceptable on a credit card
  Identify qualifying criteria for credit card usage, ie. non volume rebate accounts.
  Decision as to who is responsible for credit card fees.
• allows faster cash from small accounts
• We have and are considering the use of credit cards because of demand from our customers. We have been reluctant because of the dispute/chargeback possibilities by the purchaser and because we understand the credit card companies do not provide adequate information to post to accounts receivable. We would be interested in any information in this regard.
• Realize that just because you have been issued an approval number, that the charge can be reversed by the customer disputing the charge. Know your customer!
• Do your due diligence before selecting a bank. Make sure they are experienced and responsive. Would also recommend doing an RFP to several banks. You can get an RFP from the Association for Finance Professionals (Formerly the Treasury Management Association).
• Make sure you are properly trained at the beginning to ensure that you are receiving the lowest fees possible.
• Get an integrated order entry credit card software system and auto cash approval algorithm to automatically adjust off the paid invoices. Make the department taking the order get the credit card approval if your system is not automated. Tell the department they will be charged back for any disputes or reconciliation errors
• Understand chargeback policy in contract
• negotiate with bank, Visa/MC charges not separated
• Don't
• That the benefits of credit cards out way any problems that can arrise. With internet
  use and international purchases, it eliminates rate conversion fees.
• doesn't hurt to try it and use it as a means of helping collection effort and saving time from collecting of high risk customers.
• MAKE SURE IT IS AUTOMATED, VERY DETAILED WRITTEN PROCEDURES, AGREEMENT WITH ALL PARTIES INVOLVED ON THE PROCEDURES, AGREEMENT WITH CUSTOMERS
• Think twice and have all of the security in place to protect credit card abuse. Secure files and systems and personell who deal with the information. Be sure your comapny understands the expenses involved and people it takes to administer the operation.
• Benchmark with other companies since there are many nuances to the process. Several CRF members have proven helpful in this regard.
• The provider of credit card services is critical to this working for you. Most US companies will use a provider that has software to cover all of the cards available. That way, you don't have to arrange agreements with separate credit card vendors and receive funds from multiple sources. Our next step is to make it an automated process with internet transactions. We are not their yet. We are testing the water with an employee store today that allows them to pay via c/c.
• create a fraud prevention system
• Do a cost analysis ahead of time, estimate the volume of transactions in #'s and $ amounts then search for a the best rate available. The more transactions, the lower the rate. Develop good internal procedures for processing the transactions, particularly if phone orders are involved. Train customer service or sales personnel so they know what info is needed and any restrictions that may apply. Consider establishing maximum amounts that you will accept on a credit card. We began to accept credit cards to appeal to smaller, one-time customers. But we found a couple of regular customers who had terms with us started using their credit card simply to rack up frequent flyer miles. At 3% of a $20,0000 sale, it became cost prohibitive. Thus we instituted a $5,000 limit on credit card orders.
• Make it a fee based system through a 3rd party and only use this option for collection troubled customers.
• Be sure that everyone involved with credit cards has
  a complete understanding of the process.
• It takes a lot of work to automate the process, both from internal resources and your processing company but in our case it has been worth it.