stupic question: credit card processing

slang · 05-25-2004, 04:05 AM

I have a procedural question about the processing of credit or debit cards over the net and well, I did look for the answer, but not very much. Someone here must know for sure and maybe you'll save me some time.

If a business has a website complete with a products ordering page and CC processing, can a CC be used for a purchase at the store? For example, the shopingcart is used for ordering things from the online showroom. Could it be used to order and pay for something that will be picked up or carried out after the completion of the CC transaction instead of being shipped?

It seems possible that a special part of the online ordering could be for pickup items only, and therefore have no item description but just the note " item for pickup" in the shopping cart menu. When someone wanted to use their card for something in the real store, they would select the increments that would add up to the total of the purchase. 827.15 would be (1) $500, (3)$100, (1) $20, (7) $1, and (15) $.01 . The total of the items ( or dollar amounts ) would add up to the total when the CC user checks out. In addition to the CC transaction number etc, that you keep to verify the transaction for the consumers protection, the written sales slip would be marked as "paid by CC from website" or some thing similar.

This method would allow me to list the increments of the dollar amounts instead of listing every single item that is at the store. It would save me a lot of grief doing this.

Or would it?? I dont know.

Processing all CCs online would also avoid the duplication of having an online service and a card reader at the shop.

Somewhere in my travels I remember seeing a merchant doing this, but what, if any, problems might I have?

Beestie · 05-25-2004, 09:29 AM

Circuit City has a program like that but I don't know any more than they talk about on their television commercial.

You order it online and pick it up at the neighborhood store. Presumably, the online system verifies that the product is in stock at the store in question and that it is "held" until you pick it up.

Sounds clean and simple but its pretty darn impressive when you start thinking about the formidable logistical problems they had to solve in order to offer that service to their customers.

But, to your question, it definitely is possible and at least one merchant is doing it.

SteveDallas · 05-25-2004, 09:34 AM

I think slang's asking about somebody walking into the store, picking out their stuff, checking out, and the merchant cahrges the credit card via the internet instead of with a traditional in-store terminal.

I think that would be OK, but I have no idea how the fees would work out. (I understand there are higher costs for transactions that don't involve physically swiping the card.)

Griff · 05-25-2004, 01:03 PM

Ducking the sales tax in the process?

tw · 05-25-2004, 01:31 PM

Most internet operations are separate divisions of the company. IOW to do something over the internet and then get it in the store would involve, for example, cooperation from two separate companies that are owned by the same holding company.

SteveDallas · 05-25-2004, 01:37 PM

Quote:

Originally posted by Griff
Ducking the sales tax in the process?

I don't see why--the collection of the sales tax (or not) has nothing to do with the fact that the payment is made with a credit card.

Undertoad · 05-25-2004, 01:41 PM

Current law sez if you have a physical store in that state, you have to collect sales tax on sales for customers in that state.

slang · 05-25-2004, 02:20 PM

Beestie

I wasnt aware that Circuit City had that option. There arent any Circuit City stores here and I dont watch TV to see their commercial spot to know about it.

This situation here isnt like that, but thanks for the input.

SteveDallas

Yes, that's what I was trying to describe

The comparison of swiped transactions vs net transactions shows the net to be the cheaper method for the merchant. That's the case here anyway. Small town banks apparently dont have the expertice to make this available at a competetive rate. It may just be that not many local retailers use the net, or even have the net as a part of their business.

Griff

It was not our intention to avoid the sales tax by using the net processing. I thought the sales tax had to be collected by the merchant if the item was to be shipped within the same state.

TW

I always hesitate to read your posts but thanks for what I am assuming was an honest attempt to answer the question and help me. This little operation doesnt have a holding company or any "divisions". It's a small family owned and run gun store that's trying to get the best rate on card processing and is looking at the possibility of capturing an ever increasing market of out of town customers that would prefer to use their cards.

Thank you all for your input. If there is anything else you have to add, maybe something not discussed here or a reply to existing comments be sure to add a reply.

Bitman · 05-26-2004, 02:18 PM

I think it's a question of who's running your site, and who controls the CC machine. Talk to the people who run your web store, they should be able to set you up with a special page, either with a slot to enter a custom amount, or a page with direct access to the card charging process.

As for Circuit City's local pick-up feature, it's not quite so complicated when you know the trick. CC has tons of stores, and to hold costs down, they computerized and automated all their inventory. Local pick up is just a nice side effect.

05-25-2004, 04:05 AM	#1
slang St Petersburg, Florida Join Date: Oct 2002 Posts: 3,423	stupid question: credit card processing I have a procedural question about the processing of credit or debit cards over the net and well, I did look for the answer, but not very much. Someone here must know for sure and maybe you'll save me some time. If a business has a website complete with a products ordering page and CC processing, can a CC be used for a purchase at the store? For example, the shopingcart is used for ordering things from the online showroom. Could it be used to order and pay for something that will be picked up or carried out after the completion of the CC transaction instead of being shipped? It seems possible that a special part of the online ordering could be for pickup items only, and therefore have no item description but just the note " item for pickup" in the shopping cart menu. When someone wanted to use their card for something in the real store, they would select the increments that would add up to the total of the purchase. 827.15 would be (1) $500, (3)$100, (1) $20, (7) $1, and (15) $.01 . The total of the items ( or dollar amounts ) would add up to the total when the CC user checks out. In addition to the CC transaction number etc, that you keep to verify the transaction for the consumers protection, the written sales slip would be marked as "paid by CC from website" or some thing similar. This method would allow me to list the increments of the dollar amounts instead of listing every single item that is at the store. It would save me a lot of grief doing this. Or would it?? I dont know. Processing all CCs online would also avoid the duplication of having an online service and a card reader at the shop. Somewhere in my travels I remember seeing a merchant doing this, but what, if any, problems might I have? Last edited by slang; 05-25-2004 at 06:02 AM.

05-25-2004, 09:29 AM	#2
Beestie -◊\|≡·∙■·∙≡\|◊- Join Date: Feb 2003 Location: Parts unknown. Posts: 4,081	Circuit City has a program like that but I don't know any more than they talk about on their television commercial. You order it online and pick it up at the neighborhood store. Presumably, the online system verifies that the product is in stock at the store in question and that it is "held" until you pick it up. Sounds clean and simple but its pretty darn impressive when you start thinking about the formidable logistical problems they had to solve in order to offer that service to their customers. But, to your question, it definitely is possible and at least one merchant is doing it. __________________ ♠ ♥ ♣ ♦

05-25-2004, 01:03 PM	#4
Griff still says videotape Join Date: Feb 2001 Posts: 26,813	Ducking the sales tax in the process? __________________ If you would only recognize that life is hard, things would be so much easier for you. - Louis D. Brandeis

05-25-2004, 09:34 AM	#3
SteveDallas Your Bartender Join Date: Jan 2002 Location: Philly Burbs, PA Posts: 7,651	I think slang's asking about somebody walking into the store, picking out their stuff, checking out, and the merchant cahrges the credit card via the internet instead of with a traditional in-store terminal. I think that would be OK, but I have no idea how the fees would work out. (I understand there are higher costs for transactions that don't involve physically swiping the card.)

05-25-2004, 01:31 PM	#5
tw Read? I only know how to write. Join Date: Jan 2001 Posts: 11,933	Most internet operations are separate divisions of the company. IOW to do something over the internet and then get it in the store would involve, for example, cooperation from two separate companies that are owned by the same holding company.

05-25-2004, 01:41 PM	#7
Undertoad Radical Centrist Join Date: Jan 2001 Location: Cottage of Prussia Posts: 31,423	Current law sez if you have a physical store in that state, you have to collect sales tax on sales for customers in that state.

05-25-2004, 02:20 PM	#8
slang St Petersburg, Florida Join Date: Oct 2002 Posts: 3,423	Beestie I wasnt aware that Circuit City had that option. There arent any Circuit City stores here and I dont watch TV to see their commercial spot to know about it. This situation here isnt like that, but thanks for the input. SteveDallas Yes, that's what I was trying to describe The comparison of swiped transactions vs net transactions shows the net to be the cheaper method for the merchant. That's the case here anyway. Small town banks apparently dont have the expertice to make this available at a competetive rate. It may just be that not many local retailers use the net, or even have the net as a part of their business. Griff It was not our intention to avoid the sales tax by using the net processing. I thought the sales tax had to be collected by the merchant if the item was to be shipped within the same state. TW I always hesitate to read your posts but thanks for what I am assuming was an honest attempt to answer the question and help me. This little operation doesnt have a holding company or any "divisions". It's a small family owned and run gun store that's trying to get the best rate on card processing and is looking at the possibility of capturing an ever increasing market of out of town customers that would prefer to use their cards. Thank you all for your input. If there is anything else you have to add, maybe something not discussed here or a reply to existing comments be sure to add a reply.

05-26-2004, 02:18 PM	#9
Bitman cellar smellar Join Date: Oct 2001 Location: californy, baby! Posts: 403	I think it's a question of who's running your site, and who controls the CC machine. Talk to the people who run your web store, they should be able to set you up with a special page, either with a slot to enter a custom amount, or a page with direct access to the card charging process. As for Circuit City's local pick-up feature, it's not quite so complicated when you know the trick. CC has tons of stores, and to hold costs down, they computerized and automated all their inventory. Local pick up is just a nice side effect.

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