Fear, the Creativity Killer

It’s pretty hard to get up if you’ve never fallen down.

“If you’re not prepared to be wrong you’ll never come up with anything original.” – Sir Ken Robinson

This quote was from a short speech given by Sir Ken Robinson, viewable on Ted HERE – A really good source of high quality information “ideas worth sharing

The topic is on how schools kill creativity, forcing their curriculum without seeing the potential of the children and allowing them to do the things the were born to do along with educational guidance. I couldn’t agree more.

Likening it to employees at the company, the fear of failing and not moving ahead in their role, career and life as a result of this fear is an absolute shame.

Have a plan, share it or don’t, but move forward with what you think is right. No one has ever been fired for failing at an attempt to improve the customer experience, their efficiency at work, the products and services offered at the company.

Nothing earth shattering in this post, just encouragement to run with it, be wrong, learn from it and try again.

Merchant Processor Reserves – Retailers Beware!

Watch out for Reserves being held back by your Merchant Processor.

For years we were using Chase Paymentech to process our credit cards for online sales. They received hundreds of thousands in profits from fees charged to us as we pushed through more than $10,000,000 per year in transactions. With an incredibly low charge-back rating (<.01%) and a consistent and positive relationship, Chase Paymentech somehow thought it would be a good idea to put the squeeze on their best customers and withhold up to $200,000 of our working capital.

I understand protecting yourselves, but this is completely unnecessary, insulting and inconvenient to our business. We are not a high risk merchant, we are selling VoIP hardware B2B.

Our average credit card sale is about $750 and our annual charge-backs are few and far between with only one or two per month (out of 1,500+ transactions) and usually because the customer does not recognize the name on their statement.

Why would a company (Chase) making so much off a good customer want to take unjustified steps that potentially upset the cash-flow and balance of said customer? Is it really just “policy” or is this an opportunity to solve some of their internal cash flow needs?

I know we are not the only one being subjected to this and it is a shame as for other companies, this could be a death sentence. There are other processors out there that do not carry reserves (higher rates though), so I would make sure you have Plan B in your back pocket if you are a retailer taking credit cards.

Needless to say, we switched to another processor that doesn’t (or isn’t) holding any Reserves. Thanks Chase, well done!  We’ll do fine without you.