Why we are implementing a “pay-by-check” discount: Credit cards are often perceived as convenient but have several downsides for the merchant. Beyond the pain and delays of having to get fresh card info from the customer for each order, cards cost us thousands of dollars every year in processing fees (i.e. merchant service fees). Merchant service fees are a significant business expense for us every year. Many customers assume using a card gets us our money faster, however many don’t think about the cost to us of running their card.

 

Customers tend to use a card for one or more of the following reasons:

• To get points, miles, cash back, etc., but while card users are enjoying these perks, it is at the expense of the merchant. 

• To complete the transaction so they don’t have to remember to send a check.

• To defer their expense until the next card billing cycle.

• To streamline their business or personal expenses.

 

It is our hope that by offering a discount, we can encourage more customers to move away from cards and send checks instead.

 

Q:    Can I still pay by card?

A:    Yes, you may still use a Visa or Mastercard as always, and there will not be any additional fee added. However, if you choose to continue to use a card you will not be eligible for the 2% wool discount extended to Net Terms customers (Net 10 for retail and Net 30 for wholesale customers).

 

Q:    I am an international customer and pay by card. Can I still get the discount?

A:    Unfortunately, no. Because of the need to use a card to handle the exchange rate fluctuations, a check discount will not be available to customers who are not able to send a check in US Dollars.

 

Q:    What if I forget to send a check?

A:    If we find that you have an outstanding invoice in our accounts receivable report, we will reach out to you, as always, to have it researched or remind you to please send a check. 

 

Q:    What if I accept Net Terms, receive the 2% discount, but decide later I need to use a card?

A:    Contact us to let us know you may be late but do send us a check. If you must use a card, after you have accepted Net Terms, we will add back the 2% to your wool subtotal PLUS an additional 3% process fee to your grand total when the card is run. 

 

Q:    The Wool Studio will not extend me Net Terms and requires me to use a card. Can I still get the discount?

A:    Unfortunately, no. We have required you to use a card when ordering because of an inconsistent or late payment history under Net Terms. 

 

Q:    What if my mail is slow or the envelope gets lost in the mail?

A:    If we find that you have an outstanding invoice in our accounts receivable report, we will reach out to you, as always, to have it researched. First we will ask you to research to see if you show record of the check being written. Second, we will ask if you see record from your bank that the check was cleared (i.e. deposited by our bank). If there is record of it being written but not cleared, we will ask you to please send a new check.

 

Q:    Is the 2% discount on the wool (subtotal) or the entire order, including shipping (grand total)?

A:    It is on the wool only. We cannot directly control shipping costs and freight is a pass-through expense for The Wool Studio. When we accept a card as payment, our merchant service fee is based on the grand total (which includes the UPS shipping charge). This is another reason why cards hurt our profits so much. 

 

Q:    How much will I save by paying by check vs using a card?

A:    It will depend on your price point. If you are paying $26.00/yard, 2% is a savings of $0.52/Yard. This means you are paying $25.48/yard. Following this example, the new $1.00/yard price increase starting in Jan 2024 will be more than cut in half if you pay by check! Said another way, paying by check erases more than half of the price increase!