Page 11 - 2017 3rd Qtr Newsletter_TAA_FINAL

TAA NEWS

MERCHAnT CREdIT CARdS & CHARGEBACKS By: Colette Clift-Mayers
COMPAnIES EdITOR

Just how exposed do you want to be in but being an elderly woman she had
your business? forgotten she gave him the permission
and was surprised by how much he
That is a question that our attorney asked “racked up” in auction purchases. This
us at our yearly review meeting of our bidder attended one of our online
SOP (Standard Operating Procedures). auctions and 1 storage auction. The
storage auction was cash only but the
Merchant companies and credit cards online auction afforded him the chance
allow us to give our buyers more to use Mom’s credit card to pay his
options in paying for their auction invoice via an online payment system.
invoices. We hope they spend more The amount was around $600.
money at our auction with these merchant company did not rule in the
conveniences thus allowing us to We were fortunate that he had signed auction house’s favor. Unfortunate and
make our sellers happier clients. his invoice and receipt for picking up his a hard lesson.
Did you know that some credit cards Be careful at your auctions! Online or
like American Express will give their live doesn’t matter.
cardholders an indefinite amount of
time to dispute a charge? Not a year TIPS:
or 30 days- an AMEX cardholder can
theoretically dispute a charge 3 years • Get a signature from every bidder
down the road, if they are so inclined. that uses a credit card to pay.
So, at what $$ dollar amount do you cut • Telephone payments- have them
off a credit card and tell your buyer’s sign their invoice, scan & email/fax
they have to pay with cash or wire it to you so you have their signature
transfer? on file.

(Hint: BoldBids is less than $5,000) • Over $5,000 insist on another form
A small or medium business cannot items or our merchant company would of payment. (think wire transfer)
survive with multiple chargebacks. A have ruled in favor of the card holder.
young auction company will find itself Once she saw her son’s signature, she • Don’t use PAYPAL they are not
out of business or taking out a loan at accepted the charge. A small amount business friendly & often rule in
their local bank to cover the merchant that could have been a greater amount. favor of the buyer.
charge backs if they don’t rule in your We learned early on that we have to be
favor. diligent when it comes to credit cards • Talk with your merchant company
& read how they handle disputes.
and merchant companies.
Several years ago, a bidder ran amuck
at several auction houses and storage I heard other auction companies were • Cashier check fraud is high. Be
auctions with his elderly mother’s credit not as fortunate. The chargeback was careful about taking these too.
card. Now, according to the story, he unfair to be sure since he had the Wire transfer is still the safest
had her permission to use the card merchandise from the auction but the option.

TAA: GUIdELInES FOR EndOWMEnT SCHOLARSHIPS continued from page 7

Endowment Scholarship Consideration: A person, persons, *Any scholarship made in memorial must have the approval
or group interested in the establishment of an of the family of the one being memorialized prior to
Endowment Scholarship must submit a written plan to establishing of the endowment.
the TAA Scholarship Committee. This plan must include
the following: Once an Endowment Scholarship has been approved by
the TAA Scholarship Committee the Endowment Donor
1. Name in which the Endowment Scholarship shall be will be required to sign a letter of agreement for the
called.* specified funding of the scholarship as stated in the
2. Specific Education type, i.e. Ring Man School, guidelines. The Donor must also agree that the Endowment
Auctioneer School, CE, or Designation be in place for a minimum of 5 years to establish credibility.
3. Recipient requirements. Any Endowment Scholarship must be in place and
4. Specified Endowment Funding approved prior to the end of the year preceding the Texas
5. Restriction Consideration if any. Auctioneers Association Convention.

www.texasauctioneers.org 3rd Quarter • 2017
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