RetailTerminals.com - Retail Credit Card Machines and Merchant Accounts

Frustrated by the dearth of flattering leotards on the market, dancer Yumiko Takeshima started her own line of customized dancewear in 2003 and has since developed a loyal following of fans around the world. The company, Yumiko, has experienced double digit growth solely on Internet and phone orders. Yumiko also owes much of its success to its network of almost two hundred YumiGirls, a community of Yumiko fans who sell the product to other dancers in their community. Continuing on its momentum of growth, the company ventured into the world of retail for the first time with a store in an up-and-coming Manhattan neighborhood.

In planning its initial foray into retail, Stephen Dean, head of Yumiko USA, explored various Mac-compatible point-of-sale (POS) software options to make the transition as smooth as possible. He found XSilva Lightspeed 2 to be the clear winner in the bunch. With a simple, sleek interface, the solution was easy to use, flexible, and comprehensive in functionality. After a few weeks of using XSilva, Stephen had nothing but rave reviews for the solution. The following are excerpts from an interview conducted in his NYC store:

Q: What are some of the most important features you were looking for in a POS solution?

A: First of all, it had to be Mac-compatible, which automatically narrows the list down to a few options. Second, it had to be flexible and easy to use. Our business is largely customized product and I needed something that would allow me to easily add new SKUs into the system. We offer a whole range of leotards that people can customize by sleeve length, material, color, etc.

 Because Yumiko has so many SKUs, it's important that the user interface is simple and straightforward. On the front end, all I have to do is scan the barcode and all the relevant information pops up on the screen – price, sales tax, description, size, color. On the back end, setting up each style was a breeze. And once the styles are in the system, it was easy to find a specific leotard by typing the name, any part of the description, or color. I can also update the information or print a label in a matter of seconds.

What I've also found extremely helpful is the inventory management feature. I will never have to close the store to do an inventory check – XSilva keeps an up-to-date count of exactly how many of each style, color, and size I have on hand. And if I'm running low on certain styles, the system automatically reminds me to reorder.

Q: How was the learning curve for XSilva?

A: I'm no techie, so the Mac-like interface made it easy to figure out. The support team at MerchantPlus and XSilva were great – they were available to help with any other questions I had.

 Once I got comfortable with the system, the rest was easy. I've already seen huge time savings already...I can't imagine doing any of this manually.

Q: How compatible is the solution with your existing accounting software?

A: That's another added bonus – XSilva is compatible with the accounting system I currently use. There are also some great financial features, such as the margin calculation feature. Yumiko products are made in Spain so I need to be able to set up a supplier in the system in euros and calculate the US price I need to make my required margin.

Q: As you expand the retail business, how do you see your software needs changing?

A: I am looking to hire three or four part-time employees for the store so I can focus on other parts of the business. Because the software is easy to use, training new employees should not take very long. And once they learn the system, all they have to do is scan the barcode to process the transaction. There's no need to memorize style codes or prices and hence, little room for error. I also like the security features that come with the program – I can make sure that I'm the only one with access to certain functions, like changing the price of a style.

And in the future, if we expand to multiple retail stores, I can add users so everyone can access the same system. XSilva is fantastic for small businesses that are looking to grow and stay organized.

From the time eBay acquired PayPal in 2002, and its subsequent gain in popularity since then, questions arose as to how it compares to a traditional merchant account. We feel that despite some of PayPal’s initial convenience it still doesn’t challenge a true card-processing solution. Here are the leading reasons why:

• For those of us needing to process credit cards in a brick and mortar location a Merchant Account is not only the best alternative, it’s the only alternative. It offers highly customizable processing options; including Mail/Phone Order, Retail, Internet, and Mobile card acceptance.
• Immediate access to funds is important to many businesses, especially those needing to keep a continuous cash flow moving. A Merchant Accounts deposits funds directly into your bank account, typically within a 48-hour time period. PayPal requires funds to be placed into their interim account first, before being manually submitted to your bank account. This wait can be costly, and even jeopardous to an organization.
• An even more important concern to businesses is having their processing abilities frozen or even revoked. With a Merchant Account your business goes through an underwriting process by a highly specialized team who understand your businesses. Unlike PayPal, there is virtually no risk of your credit card processing being hindered once you are up and running.
• Universal acceptance is another key advantage to having a Merchant Account. With PayPal, your customers also need a PayPal account to be able to pay you. In contrast, a Merchant Account accepts Visa, MasterCard, Discover, American Express, JCB, Diner’s International and all the major credit cards that are used daily. Forcing someone to register for PayPal is a major inconvenience and can be the deciding factor of whether or not you make the sale.
• Recurring billing is an extremely useful feature which allows you to bill customers on a weekly, monthly, or quarterly basis. This is advantageous to merchants who provide a subscription-based service; to them billing automatically can save time and headaches. Traditional merchant accounts offer tools that allow for this (such as Ubersmith and Authorize.net’s ARB Module).
• PayPal transactions move across large accounts which are pooled and are usually too large to be FDIC insured. This is not the case with a merchant account. Your money is always secure and protected.
• With PayPal, customer service is something that is practically non-existant. Allowing for a company to handle all of your processing and not being able to speak to someone over the phone is possibly PayPal’s biggest shortcoming. Situations when you need immediate answers can be frustrating without the ability to reach someone who you have a real relationship with.

The bottom-line is that if you want to run your business in a professional manner and need to firmly establish your own identity, then a transparent merchant account solution is your best option.