http://alwaysupward.com/blog/the-history-of-credit-cards-in-retail/ Success only runs one direction.... Wed, 16 May 2012 17:26:21 +0000 hourly 1 http://wordpress.org/?v=3.3.2 http://alwaysupward.com/blog/the-history-of-credit-cards-in-retail/comment-page-1/#comment-1431 Jenny Morgan Thu, 22 Oct 2009 20:19:03 +0000 http://alwaysupward.com/blog/?p=3308#comment-1431 When we started our business, we offered terms to most stores with good credit sheets. But, what you don't address above is why so many vendors have shifted to credit card only--it is because N15 or N30 is often Net Whenever They Feel Like It. We and many vendors I know have spent hours, months, entire days chasing down unpaid invoices. We have vendors, too, and they often require pre-payment from us, so we cannot afford to float a store's invoice indefinitely. If you took a survey of vendors, you'd probably find that they've switched to credit card only because the majority (and I stress the word majority) of their N30 invoices were being paid at N60, 90 or 120 or worse. When we made the switch to requiring payment by credit card, we initially waited 30 days post shipment to charge the retailer. What happened then was that the credit card would often times decline, and we'd be back to chasing, calling and faxing for money on product we'd already shipped. For retailers who always pay on time, or whose credit cards never decline, we do try to be flexible and give terms or a little float time before we charge their cards, but I think you're assuming too much by assuming that this type of retailer is the norm, and are being wholly unfair to vendors in the process. How about suggesting a solution that works for both sides? When we started our business, we offered terms to most stores with good credit sheets. But, what you don’t address above is why so many vendors have shifted to credit card only–it is because N15 or N30 is often Net Whenever They Feel Like It. We and many vendors I know have spent hours, months, entire days chasing down unpaid invoices. We have vendors, too, and they often require pre-payment from us, so we cannot afford to float a store’s invoice indefinitely. If you took a survey of vendors, you’d probably find that they’ve switched to credit card only because the majority (and I stress the word majority) of their N30 invoices were being paid at N60, 90 or 120 or worse. When we made the switch to requiring payment by credit card, we initially waited 30 days post shipment to charge the retailer. What happened then was that the credit card would often times decline, and we’d be back to chasing, calling and faxing for money on product we’d already shipped. For retailers who always pay on time, or whose credit cards never decline, we do try to be flexible and give terms or a little float time before we charge their cards, but I think you’re assuming too much by assuming that this type of retailer is the norm, and are being wholly unfair to vendors in the process. How about suggesting a solution that works for both sides?

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