Business Performances

So much time and money is spent addressing merchant processing and related issues for retail and product oriented vendors. Service industries transact business just the same as product related merchants, yet are faced with more challenges. Today, just as we buy products online and over the phone internationally; we are starting to do the same with service providers, and many customers are finding great satisfaction in doing so.

Banks, processors and merchant service providers rate service related merchant accounts into two basic categories; the first being a merchant that retails or wholesales products and at the same time sells a service to accompany the product, or vice versa. A good example of this type of merchant would be an auto repair business; where the mechanic fixes your car and sells you the parts involved with the repair. Other examples are any type of salon where a product accompanies a service. You get the drift. Many times, the products sold pose little threat of customer dissatisfaction due to the fact that quality control is at a higher level than the retail level. Services provided are however circumspect and subjective, thus always have and will always find themselves on the bubble when it comes to customer satisfaction indexes.

The second type of merchant is a service only merchant, where there is only a service charged on the card. Examples of this type of merchant would be a law firm, hotel or a business that charges admission, where there is inherent value, but no product. These service only businesses tend to be more of a risk for banks, due to a lack of quality control or tangibility. Chargebacks are more of an issue, due to the fact that the service is usually rendered before the complaint is filed with the issuing bank or processor. Service only companies almost always like to believe that the quality of service is consistent and many times it is; however, customer expectations are as varied as customers’ themselves. These reasons alone inch banks toward higher discount rates and security funds held for impending chargebacks. This should in no way affect a service only merchant from obtaining and maintaining a merchant account. Good bookkeeping, solid customer communication and a well defined business plan listing detailed services provided and possible customer expectations to the bank will go far in terms of lessening chargebacks on the merchant’s end. While this won’t stop chargebacks , it creates a more defined business transaction, where the gray area of customer dissatisfaction and satisfaction much less.

Walking into a business to purchase a service and/or product seems somewhat of a moderate risk, but how about online merchants selling their services over the internet? Today, with the world getting that much smaller, service industries are thriving. The internet has allowed many clerical, sales and customer service related businesses and even professional services such as legal and laboratory and mechanical services to take the lead in their industries. Customers are now able to do their research to find the best company for the job, not just the most local one, while hoping for the best.

Some services are domestic, just not local to consumers; while other services are sourced out to other countries. It depends on the level of skill, or technical knowledge that it takes to complete a project that determines pricing and lead times. By researching and seeking out specialty service businesses, those merchants may see lower chargebacks and higher customer satisfaction indexes.

Politicians speak all the time about community values, strength of the community, and community responsibilities. Are these just words? Or does the rest of the country really believe in a concept of community? Generally, every human being has an innate respect for the community in which he lives. However, in practice is a different story. A lot of us don’t even know our neighbor’s last names (if we know their first names).

A healthy community can contribute a great deal to individual, family and community success. A community, like those of very old African and Asian cultures, benefits the individual by sharing the individual’s responsibilities and commitments. A helping hand relieves stress and opens the door for more time to pursue other goals. If each mother on a single block agreed to take one another’s children one night a week, once a week, you save money on child sister’s and you get an extra day out of the week to focus on something that does not involve the children. Your neighbors benefit from the same generosity. Each member of the community protects the others’ property and families from predators, burglaries, and vandalism.

We live in a busy world. Well, at least that’s what we are constantly told. So, we are continuously moving to accomplish something. Most of the time, we are not even sure what we are trying to accomplish. We are constantly moving because that’s what we’ve been taught and trained to do. To what end?

The ethical standards of the businesses in the community all so play apart on the perception of the community from its members and its visitors. If companies within the community hold themselves to a higher standard of providing service, then the members in the community will expect this level of service from other companies. The analysts and economists call this a healthy and competitive private economy.

What if there is no immediate monetary value from the company putting its efforts back into the community? Then it is up to the company leaders and executives to promote community awareness amongst their employees.

Think of ways that you can benefit by knowing others in your community. Think of ways that others in your community can benefit from knowing you. This will also open your mind to possibilities of a strong community.