Santa brought me an early Christmas gift. After more than a month of working on it, I finally received a merchant account today which means I can process credit cards. This is increasingly important to my business from a cash flow standpoint as I'm realizing that many retailers don't want to pay by check and it's simply easier for them to keep everything on their credit card. I haven't yet actually processed any orders via the merchant account but I do have three orders from October (yikes!) that need to be processed ASAP!
For any retailers out there, I'd be interested in learning what terms are typical for merchandise. This past year I've been offering Net 30 terms but have been astounded by the number of people who simply forget/are too busy to send a check in on time. That being said, I realize that retailers have 101 other things going on but right now it's taking me on average of 45 days to collect on accounts which is far too long. With this new merchant account, I'd ideally like to charge retailers' cards after I receive confirmation from UPS or USPS that they've received the product. But is this the way it's typically done or do other terms normally apply when it comes to credit card orders?
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Wiz - thanks! I'm definitely going to start charging credit cards once the product is shipped. Maybe after I build up a relationship with them I'll extend some terms but it's just taking far too long to get money in hand.
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