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Consumer Financing

What’s up everybody? It’s Justin Live from B2B Vault, the Payment Technology Podcast sponsored by Nationwide Payment Systems, hosted by this guy Allen Kopelman! And we’ll be providing you with educational information about FinTech, payment processing, small business in the technology businesses use in the world today. And in today’s podcast, we’re going to be talking about consumer financing.

What is it and what’s going on with it? Why is it so popular? Where’s it going? What’s going to happen next? Who’s going to blow it? I don’t know. It’s all kinds of cool stuff going on with it. Consumer financing is hit the ground running, I would say, it is like setting a trail fire wherever it goes.

The one thing that is hot is the Buy Now Pay Later! Yeah, that aspect of it. That really fired up the market! Exactly. Yeah, that’s what I was getting to, but, yeah, man. Consumer financing isn’t going anywhere. It’s going to get, it’s going, it’s just growing.

What do you think, dude? I think that we’re going to see, we’ve been having some really interesting conversations. Having the podcast is, attracts customers, but also attracts new partners for the company! Right. So, bringing new products to our merchants. So, I’m going to tell you about some of the products of companies like we’re talking to, and hopefully, we’re going to get reseller agreements with them, and then we’ll be able to start offering those products to our clients.

So, one product is cool consumer finance. They have every company always has, the type of businesses that they’re comfortable with. So, they have their list of businesses. It covers all kinds of stuff, auto repair, furniture, and lots of verticals.

Okay. And what makes their product unique is that the same, similar thing, 10 questions like we have on the Nationwide Payment Systems to get your merchant account. Yeah. So, you’ll be able to get consumer financing by filling out a simple application. Then you get approved by the company. Okay.

And they have a way of linking up the bank account the same way we’re doing where you log into your bank and do all that. And then you’re approved. Now, what makes their solution cool is they want you to have a QR code. You put it on in your business or on your website.

Okay. Maybe you sell something expensive like hot tubs or something, right? And the person uses their phone, they want them to use their phone. “It’s important, to apply”. Right! So, they scan the QR code, then the person fills out the information and because it’s on your phone, a lot of your information’s already in your phone, your name, your address, right?

So, it helps you self-populate the application. Nice. Then you’re going to request how much money you need. Let’s say you’re buying living room furniture, it’s going to be $8,000. So, you put that in, and then your social, and then basically they go within a few minutes, takes less than five minutes.

Okay. They come back with multiple offers. Nice. So, it depends, obviously depends on your credit score, and then you get to choose the different options. It could be like 12 months, oh no interest in 90 days, it could be 24 months. 36? They give you multiple offers on how to pay the money back.

So, you choose your offer. You say, oh yeah, that’s the one I want. Then you link your bank account up because you go through like a thing like people know Plaid. Right! Were basically, you’re logging into your bank account. I never did that. You’re connecting it, you’ve done that before! Like when you are using a service, sometimes you have to put a link log into your bank to connect it together, like in QuickBooks! Oh, yeah.

Different things like that. So, you’re linking up your bank account, so you don’t have to have your routing and account number. Then once you’re all set up, as I said, this process just takes a few minutes on your phone! They send you back through text message, a virtual credit card, and then you could basically show that to the business and they can key enter your credit card into the terminal.

And you have your purchase done. Now, normal consumers, the consumer finance companies we talk to now, oh, you have to send them the merchant’s information! Synchrony. Then they want to call the merchant on the phone! Then there’s an application online that the consumer fills that. Then they approve them pretty quick, right?

Every time we talk about this. What? I just have this one project that I had. Let me finish talking about this and then we’ll, so then the person gets approved, and they pick the thing they want. And it’s all going back and forth through email instead of text and on the phone.

And then the money goes to the bank, they give them their bank information and then the money goes to their bank account. Then they have to go to the bank or write a check to the merchant, right? Now, a lot of people don’t have checks anymore, right? So, they have to go to the bank and either go get a check from the bank and then bring it back to the merchant.

And the merchant must deposit the check in the bank, and the process takes a long time with this virtual credit card. You’re cutting all that out, boom! It’s done, it’s a done deal! So cool. So, you, it’s a done deal. So, I think that’s a real game changer. It’s going to be a real game changer for businesses and this company, they’ve been in business for a few years.

A bunch of the people worked at another company that we worked with for a long, really long time. So, I know a lot of the employees there and the people running the underwriting and risk departments. Nice. So, it’s very cool. So, what were you going to tell me about a project? Oh yeah, no, so you were, it’s like you hit it at two angles.

One, you were talking about furniture. Right! Hypothetically, and then you know the other one. So, I was building a website for this furniture company, a big they had multiple locations. This would’ve been a great product for them! Oh, exactly. That’s why I think about it every time, right? And so we are, we build out the website and I get it already.

And then here comes the time when they need to set up their merchant account. Furniture, first of all. Cause they can’t use PayPal. But I’m saying furniture is in a higher risk category. I’m a web developer, right? I didn’t know anything about this at the time. Right! I yeah, this just goes back to either all those times when we left money on the table. Of course, I’m like, yeah, we could sell your stuff, there’s no limit on what you could sell online. There is no limit! I said, but you must set up a merchant account. And he was like okay. They were like, don’t worry about it.

We’re going to keep going forward. So, we’re going along with this project and it’s becoming a bit of a pain because they’re adding stuff, and they’re adding stuff. And of course, my price is changing, right? So, we’re going back and forth or whatever. Finally, we came to an agreement on everything, we’re just going to launch the site.

So, I go to the location and I’m like, all right, let’s get the, we got to connect them. You got to be able to take money, man. And they were like I thought you were going to do that. And I looked at him like, What? It’s, yep, dude. Yeah, it’s not that easy, furniture! This is not my business, sir.

Exactly. I’m not, I don’t. A lot of people don’t understand that. No, they didn’t. They had no, but I’m saying he had no idea. So, he was like let’s use PayPal. I said, all right, we could try. We did, we tried, we put one through, transaction through for eight grand, and done.

Yeah, they’re not going to process that! No thanks, that didn’t work. And then I said where do you bank? Yeah. And I said you must have a bank account, and the guy looked at me, saying, “Yeah, like I was at this point.” No wonder I’m getting paid in cash, no checks at all. So, I’m like, all right man. So, this guy’s basically running his business off of PayPal. Like the even, he’s getting money in the store because he could swipe. Right. And so yeah! But a lot of times, like back when we first, when I first got into this business, this company, I was working for somebody, and they weren’t doing anything with the internet and that’s why I started my own company.

Exactly. We have to get on the internet. Cause he was losing so much money. Anyway, long story. Long I told him to go to, what’s the big one that we use? First Data? Yes. Yeah, not. Yeah, we don’t use them. But the next one, Ortiz? Nope. World Pay? Yes, denied. Yeah, but then you know the whole. Do you know why they kept getting denied though?

Why? Because he didn’t have enough money in his bank account. Oh, that’s not going to work. You got to show money, they don’t want to have you. Literally, finally, I asked them, I’m like, Dude, what are you showing these guys? I don’t want to show them how much money I have. I was like, you’re never going to get.

He’s I’m showing him like 1500 bucks, I’m like, Dude. No, they’re not going to approve that! One product is more than you got than you have in your bank account. They’re not going to approve your merchant account. No, that’s like I get these startup companies, they show me a bank account with 300 bucks and I’m like, the bank’s not going to approve you!

So finally, dude, like it’s just sad, right? Because nothing really came of the project. He never launched a site and like when I was just back in Milwaukee, I noticed a couple of the stores are closed out. Probably that’s due to the pandemic. For sure, but at the same time, it’s just I’ve always, I’m the guy, I’m the good guy. Right.

No, but I’m the bad web developer dude that takes your money and runs, you’d never hear from them. I’m the guy that you paid, and I want to see your business succeed. So, it just sucked that, like us, I couldn’t help him, and I wish that I had the knowledge that I have now, then, so that I would’ve been able to facilitate what he needed easier.

Yeah, I had a furniture guy, and I was trying to get him, we took him to a couple of companies. They didn’t want any furniture, no furniture. The problem with furniture is if it’s cash and carry, it’s pretty much easy to get done. But if it’s furniture, you have to order. A lot of companies are scared about that.

We just had a meeting today on the phone with a guy with a furniture-related business. This through the catalog though? Yeah, it’s through the internet. So, he had some problems during the pandemic, but this guy survived. He has a big business, he owns a big factory. They make cabinets for kitchens and bathrooms.

Oh, nice. And all that. Hopefully, we’re going to get it, we talked to a bank and talked to a few banks. Finally, we found one that was interested! Because it’s a big business. And the guy got shut off during the pandemic because the chargebacks weren’t his fault. He didn’t owe any money, he had the money to give the money back.

That’s crazy. And they didn’t treat the guy fairly. Have you been to Adam and Joe’s? Sorry it was random. Have you been to Adam Joe’s inside lately? No! Do you know if they still have the swipe? Really? Yeah, because they have an old point-of-sale system. You still have to swipe your card in at Adam and Joe’s. That’s crazy. They need to get, they need to upgrade.

We should just go in there and have a GoDaddy party. Yeah, maybe! So, the other thing is like Buy Now Pay Later. Which doesn’t make sense to me? I’m not sure how these companies are posting multimillion-dollar losses and how they’re going to stay in business, I just don’t understand it! There’s already been a couple that has gone out.

There was one called Quick Fee and there was another one that went out, but then I met with. Klarna, Shop Pay, and what’s the other big one? Affirm! Affirm those three. And then After Pay! After Pay so those four, right? Yeah. I would say they have their stuff together. I don’t know, they’re, a lot of them are showing losses on these.

Klarna is. Yeah, Klarna has losses and After Pay and Affirm are all taking losses! Really? Yeah! All three of them? Yeah, all three of them! I don’t know if Shop Pay, because you got to go straight to your account. I’m not sure. And then Sezzle was another one. Oh yeah, Sezzle. Sezzle, but they were, I don’t think they’re taking losses because that’s the one that was always taking money.

They’re very picky when they take people. Also, there are fees involved with Sezzle. Most of them, that fees like like the one that’s hooked up to Square. Recently a merchant showed me their merchant statement from Square and I was like, Man, you paying a lot of money for credit card processing?

I was like “Wow”. And I started looking at them because you do not, they don’t give you like a traditional statement. So, the guy just had a download. So, I started looking at it. I was like, “Wow”, you do a lot of that Buy Now Pay Later. And the guy goes, oh, what is that? And I showed him, you know how much you did.

It was like 50 grand over three months, and the rate on it was 6%. That is what he was getting charged. And he didn’t realize that he was paying 6% for that! Off every transaction? Yeah, for the After Pay for whatever I don’t remember which one is linked, I think it’s After Pay! I don’t remember. Yeah, I don’t know, whichever one is linked to Square.

The guy was shocked. He’s I got to take that off my website. He goes, I can’t afford that. To offer Buy Now Pay Later? Yeah, he says live with that, it was too expensive, 6%. You made $50,000 worth of sales and you’re just finding that out.

Yeah. The guy didn’t know. I’ve seen it before. I couldn’t tell you how many times people showed me their merchant statements. They said they’re paying for this, and then they find out they’re not paying that, paying more, and then they get mad at me. And I’m like, I don’t know why you’re getting mad at me! You’re lying, you’re just trying to get me to switch, dah. Right!

No, but I will show it to them. I basically get them on a video call. Exactly. And I go over it with them, I go here’s your statement. Let me do a screen share. Look at this, add these numbers up, and divide this number by that number. You’ll see what you’re really paying! Dumbo. No, you got to listen,

I’m going to tell you, merchants, figuring out how much you pay is pretty easy. You just take the fees divided by the sales. That’s it, boom. That’s your percentage! There is no other way. It’s that simple. But if you’re not doing that every month, you’re doing it yourself at this service.

You should know what your effective rate is. You should be auditing your business, all the time. But a lot of people don’t do that. And audit, I mean like your process, how you’re operating your business, everybody. But let’s just talk about these opportunities. It’s entrepreneurship month so, I’m pumped.

So, then I met with some guys that were really interesting. talk with them on the phone and they’re doing something interesting where they have a credit card for businesses. Right. For Buy Now Pay Later! Okay. Now it’s not as crazy. Buy Now Pay Later, like up to.

Three payments, six payments. 12 payments, right? That you normally see where like consumer finance, where you’re. This is a credit card, obviously, they’re checking people’s credit. Unlike Buy Now Pay Later. Right. And then they’re giving businesses and they’re trying to target into the construction business, the trade businesses, people who have to go buy a lot of supplies. Materials? And then they get paid later. Right, material.

And then, so let’s say Justin owns a he’s a handyman. He’s a handyman remodeler. “Wow” Right, and he’s remodeling a bathroom and he needs to go buy all this stuff. And the customer pays him a deposit and then they pay along. Usually, you pay along the way. You make draws. Yeah, you pay, like you finish part of it, and then the person pays you another one.

Cause the guy, the contractor needs to go get something. So, he makes a draw, and you could pay him for the work that he’s done. Right. And then at the end, once the permits are signed off on you make your final payment. So, this company has a way where those companies who do that remodeler, and construction companies can get 60 days before they get charged any interest.

I think that’s pretty cool. That’s nice. Yeah, then businesses. I don’t, I’m not a contractor, so I wouldn’t be able to say the timeline, but for smaller projects, I’m sure that would work out great. Yeah! Even if you’re getting a draw on things, yeah. It could work. So, it gives them a way to give themselves some better cash flow.

True. It was interesting, it was this company. That way they wouldn’t have to put the money out of their pocket for the materials right away. Right! So that, yeah, that’s a good idea. Yeah, then they can so they have purchased on there, and obviously, when they get to 60 days, that’s when they got to pay them off, or there starts to accrue some interest.

That’s good because let’s say you’re a company, not like a Home Depot, but like a regular wholesaler of lumber. Of lumber. Right, now when your customer comes in, you don’t have to float them credit. Cause some of those places float people’s credit.

Like they have their own. Yeah, man. Like the painting places, right? They float credit! Or, a paint shop, like where you got to go buy your paint. Right, they float credit to the customer. And I’ve seen tons of places. Lumber places, float people credit still? Yeah! I wonder about it now. I don’t know about it now, but they float people credit!

If you’ve been in business. Oh, like carpentry Yeah. No. So, you’ve been in business for 20 years. Yeah, no! My uncle was definitely getting float money. Yeah, they’ll float you. You have an account there and you go there and then every couple of weeks you’d go in. Yeah, my godfather, we would go, he painted for you. He would go and pick up his paint.

Right, go pick up the paint and they sign for it. They put it on your account. Then you go in and every Friday or Monday, and you’re making payment, paying down your bill there. And those companies you know, a lot of times, you know now the interest rates are up! Right. Right, on the Fed so you’re, let’s say that business is accessing their line of credit to float their business.

Now you have this Buy Now Pay Later for businesses. I think it’s a decent product and could alleviate some of those kinds of businesses. We actually have a client that services the construction industry.

In what way? They sell lumber, hardware and different things. Oh, supplies and stuff? Supplies to contractors. So, this would be a great product for them because they would have to when new people come in, they could say you don’t have credit. We can’t give you credit.

Oh, you need credit. You don’t have a credit card. Or it’s not about this card. How about trying this card out? It gives you 60 days because of a lot of business cards, don’t give you I’ll tell, I remember when I first started this company, right? We had an American Express card, and then we had the 2008-2009 debacle, right?

Inflation went through the roof, right? Oh! Like now, interest rates went up and American Express canceled our card. Whoa. It was actually a big mess because we had just purchased 20 grand of ATMs. And I go to find out that they canceled our card. So, you didn’t get the ATM? No, we got the ATM machines.

But I get a call from the company and they’re like, hey dude, like your credit card went through and then American Express ripped the money out of our account and it says your accounts closed. I go, what? “What do you mean my accounts closed?” We owed them 20 grand. We did business with them and, there was like a trust factor, and they knew where the ATMs were and where they were going, and we were making money there.

So, I was like we can, we’ll pay them off over, out of the proceeds. Basically, would be the same way you’re going to be paying American Express. Right, we’re going to pay them. Instead of paying American Express fees. Right, we pay them. They’re going to pay for them. So, I like that. So, we paid them, they, they had the money to float for us, and they, and anyway, we got credit with them anyway, as we started growing our ATM business because we would need to buy two, three ATMs at a time.

We didn’t want to we didn’t have that kind of cash flow at the time when we were first starting to grow. So, they would give us 90 days to pay off these ATMs. So, you put the, because you got to order the ATM, then it comes, a couple of weeks later gets installed. What would you say? What did you say? Man. I called American Express.

You know what they said. No, I’m saying, what did you say to the company to give you that much trust? Oh, we had those ATMs, went in a really big. What year was this? 2008! So, 14 years ago. Yes, they didn’t know me and Dave that well then. That’s my saying. That’s what I’m saying, what the hell did you do? I just told them, I said, we’re going to give you a month. We’ll pay it off, that’s it! But this is already after the fact that the merchandise inside of your building? No, the ATMs were not even installed yet. They were. No, I’m saying you have them. No, they were getting shipped.

But what I’m saying is like at that point the merch is out the door. Yes, the merch is out the door. He’s, he sent it. Yeah, they sent the ATMs. They were literally getting delivered. So, regardless, he’s out of money! They were getting delivered like, on the day they called me. They were basically, he was in a spot where I could do this.

Either I’m going to lose some money by having it returned to me or I’m going to give these guys the benefit of the doubt. Yeah. So, they did, they gave us the benefit of the doubt and we told them. What’s a monthly payment on 20 ATMs, if you don’t mind? No, it wasn’t 20 ATMs, it was 20 grand!

Oh, okay. It was like three or four ATMs. So it wasn’t that big of a deal. It was a couple of grand a month you had to pay. So yeah, we said, oh, we’ll pay like 2000 a month and whatever. The cash flow in the ATMs was really good and we were able to pay the ATMs off in three months’ time!

Oh, there you go. So, we paid it off. We paid off all the ATMs, we got the ATMs working. We were the first company to do the armored car loading with this company. They really wanted these armored card locations because they were very busy nightclubs where they were going to go through 50 grand of cash in each machine a week.

So, they worked with us, and they said, they knew Oh, if the guy doesn’t pay us. We’ll just keep this commission, from the ATM machine too. So, there you go, they had you buy an umm! Yeah, but we made the payments, and they were happy. Yeah. So, we had to get another credit card, so we went and got that credit.

What did American Express say though? You going to say. Oh, they just told us to go pound sand, Oh, the economy’s bad, blah, blah, blah. You can’t have that much stuff. And we’re like, what are you talking about? You canceled the transaction. You almost destroyed my business. You canceled the transaction. They charged it back on the guy.

They charged it back, they made us look really bad! And I even showed the owner, I go, look here, let me show you my American Express bill. And I showed it to him, and it showed the limit on the bill. Right! I told him, I said, here, I’m going to give you, I’m going to send you, I’m going to scan the documents.

So, then he knows that you’re not bullshit, right? So, you could see that I had a $40,000 limit on my card that they canceled. They canceled it. They sent a letter too. I sent them the letter about that. They’re like, Okay, we’re going to work with you. You got it, we’re going to work with you. They knew the location was going to do well, these two locations.

So, they said, okay but then we got this new credit card. Then that credit card was a nightmare. It actually accrued interest on a daily basis! I had a credit card like that. It was horrible! I had a credit card, that was probably one of the first credit cards I ever had, my dad helped me get it.

Yeah. And I didn’t know, and I went to Atlanta. Yeah. And I got some gas. And then I’m like, all right, why? I’m just going to get 50 bucks. Do you know what I mean? I didn’t have any, and I wasn’t thinking, this is my first credit card. I don’t, like my dad didn’t give me the rundown, you don’t get cash off a credit card.

Oh, that was a cash advance, it’s a higher interest rate! Oh my God, on top of that, they hit me because I did it from the ATM. Right! I did it out of town. Right. I was, it was just fee after fee, it was a gas station fee, and like my dad called me. So, 50 bucks will probably cost you a hundred. Literally, it was like $80. Yeah. My dad called me that night.

What the, what are you doing? Why are you in Atlanta? No. So, we had to learn not to do that. And then we finally got a better credit card. It took a while because the economy was horrible. So, we had to put up with that card and we had to like because you know the problem was, it was like you got to buy some credit card machines, right?

What’s a good rate on a credit card? Not, I don’t even know. 17? No interest! Just bought 17. No, that’s not good. That’s horrible. We should be paying like seven. 7%? Yeah, maybe less. I’m just saying like, I have a credit card now. If I don’t, I have to pay for it at the end of the month. So, I pay for it at the end of the month, that’s it. Boom!

If you didn’t have a credit card, you go to get some credit card machines, the guy’s not going to give them to you. You have to write him a check. He’s going to wait for the check to clear before you get your machines. So, you had to build a lot of trust during those days with my vendors. Sounds like it. Because I would be like, hey dude, I need these credit card machines.

I remember I went to the owner of this place that sells credit card machines locally here in Sunrise, Florida. I had to go there, told the owner, I said, Listen, I’ve been coming in here for like years, right? I don’t have a credit card anymore. I don’t have this kind of cash flow. I need 20 credit card machines.

You’re going to get your money as soon as I collect it from my clients. Hum. I am going to pay you, and the guy was like, Okay, you looked me in the eye, and I said, if I have to give you money out of my personal bank account, I’ll do it. Whatever you want, I’ll give it to you. I gave him money and then said, “I need you to give me some credit.”

And he did. Nice! And then I used to go in there and when we got. When was this again? About 14 years ago? Yeah, it was rough, dude! The economy, the world is a different place, brother. Yep. And it was rough! Then, the guy he was like, it wasn’t a lot of money. It was a few thousand dollars.

But still, that’s a lot of trust! The guy trusted me and, let me tell you, his son runs the company, he is the manager of the company now! Shout out, this guy listens to the podcast, so Sammy from JR’s! I know you listen to podcasts. If you hear me shout out about your dad, Riyad, he’s the one who helped me get started in this business because he gave me a copy of the green sheet that I write articles for now.

And he gave me a copy of that and then I learned I could start my own company. I and Dave started our own company! So, there you go. Another cool product we’re working on now is this pay-by-bank product, which is really cool. You can put this on your website, pay-by-bank. I think it’s going to be very popular pay-by-bank.

So, you click the button, pay-by-bank, then you choose your bank. Then it takes you to your bank’s website. You put in your username and password, or maybe you have it saved on your phone or in your last pass or whatever, right? You log in, you okay the transaction, and then boom!

It takes money out of your, sends the money from your bank account over to that company and that company pays the merchant with a batch.

And I actually think that it’s a very. I think the product has legs. I think it’s very unique. I think people might want to use that. Why would they use that though? Okay, cause think about it. People use similar stuff, sending money by Zelle, sending money by PayPal, sending money by Venmo, right?

The difference is when you use those services, let’s say you have a business and you have these, you Zelle, people Zelling you money every time someone Zelle’s you money. Right, you’re getting a deposit. That’s a fricking nightmare to reconcile with this, they’re doing a credit card style!

So, let’s say you do 10 pay-by-bank transactions. Boom, you get one deposit. I think it’s going to be very popular. And the cool thing is we’re working out the details of it. They’re going to guarantee the payments. People are really like are opting to pay with their, like how do you pay with. Pay-by-bank!

I know, but how are you? No, they’re going to guarantee the payments up to a grand, a thousand dollars. So, they’re going to guarantee the payment to the merchant. But what I’m saying is this could displace, get rid of PayPal, stop getting Venmo, stop. You could have it in your barber shop. Pay-by-bank, boom!

Send the guy a link. He pays you but through his bank account. Yeah. It’s the same thing as paying by PayPal. I don’t know how many times I’m tired of talking about PayPal and Strip and Cash app. No, but I’m just saying! No, I mean like my buddies are business owners because they don’t listen, you guys aren’t listening, you don’t listen about how much money you’re losing. The fees on that have gone way, way up. It’s more expensive than merchant services now. People don’t understand, and you’re getting multiple deposits because. And they’re shutting bro! Yeah, they shut down. Because I know so many small business side hustlers.

Yeah! They have lost thousands of dollars in the past six months. No, but what I’m saying is when you’re using those services. Hundreds of thousands of dollars. When you’re using those services, you’re getting a deposit one by one. With this, you’re getting a batch. You’re getting a batch deposit.

If they have it set up. Right! You’re assuming that they have their account. No, you got it. Cause a lot of people don’t have their accounts connected to their business accounts. Oh, they need to! So, then they’re just having money in PayPal. They got money in the Cash app. Yeah, they got money in Venmo, in Apple Pay, in Google Pay in this Pay, in this way. Come on. Yeah. You got to get organized and run your business the right way.

But this product is really cool. And I see others because now you have this thing called Fed Now, which is the same thing about how to move money. And then you have I was reading about this company, Jack Henry, that they’re trying to launch a P-to-P product to compete with Zelle.

But this is a product you can use in your business, right? You don’t have to use a P-to-P product to do B-to-C. You’re doing business to consumers, right? So, you don’t want to do a P-to-P. Someone wanted to Zelle me money the other day for a bill. I’m like, no, you can’t Zelle money to my personal bank account.

This is a, I have a business. You need, Go, here, I’ll get, you know what I ended up doing? I sent the guy a deposit slip for my bank account. I knew the guy. I said, here, go over to Truist and go put the money in my bank account. I can’t, you cannot Zelle me money and then I’m going to go take it out of my personal account.

You could have sent them an invoice. I did, he didn’t want to pay with a credit card. Why? I don’t know. The guy didn’t want to pay with a credit card. He’s Oh, I want to just pay you from my bank account. So, I was like, Yeah, I’ll send you an ACH, right? Yeah. No, I don’t want to do that. So, I’m like, you can’t Zelle me money to my phone because I’m not taking it.

I’m not, did he end up going to the bank? Yeah, he went, I sent him a deposit slip and he went over to Truist and deposited the cash. Into the business account? Yeah, into my business account. I have one account where I don’t keep any money in it, so that’s the account I gave him. I’m just saying there’s no money in that.

Something like my operating account, another bank account that’s there that we use to transfer when we have to pay everybody at the end of the month. Put money in there and then it goes out the next day. So, we don’t keep a lot of funds. Yeah, that makes a lot of sense. You’re not keeping a ton of funds in that bank account, that’s what we were doing.

Cause people wire money to us. I just sent it to there, that bank account. They send it there, then I move it to the operating account. So, the whole thing is, I think that’s going to become a thing that’s pay-by-bank. And I think a lot of small businesses can use it. You, it can be used on a website and it’s going to be less expensive than PayPal.

It is less expensive than Venmo. Less expensive than, it’s going to be way more efficient than Zelle! And it’s probably 10 times more efficient if you have a merchant account through your bank. Because I can tell you right now that their fees on those are crazy. Yeah, and you can get, we’re trying to, and we’re going to talk about.

But we want to promote that to people with e-commerce, right? Yeah. Hey, this is pay-by-bank, it’s guaranteed up to a thousand bucks! So, there are cool products coming out. That’s not necessarily consumer finance, but it is a really cool product for consumers. Cause when we look at a product, when me and Justin, we always do with the products, right?

We say, oh, is that a thumbs up for the business? And a thumbs up for the consumer, right? The buyer. And a thumbs up for the merchant. Consumer financing now with the one that we just talked about. Good for the consumer because it is easy to use. They get the credit card right there and run the transaction.

So, it’s great for the merchant. Yeah. It’s awesome, the merchants. Are you talking about the credit card for service guys? No, the credit card, the consumer finance where they’re doing it on their phone. Oh, yeah. They get the virtual card, that’s a win-win! For sure. Because now the consumer doesn’t have to go through the hassle of going to get a check and bringing it back to the business and then waiting to get this product can be happening now.

Everybody wants it to happen now. Indeed. And the business is going to like it because they can apply and get approved right away. So that’s cool. Buy Now Pay Later. I’m on the fence with Buy Now Pay Later! I think it’s great for the consumer. No, yeah, but I’m just saying that I’m on the fence.

If it’s going to have long-term success because I think what’s going to end up happening is, this is my prediction on Buy Now Pay Later. Just remember you heard it here on the B2B Vault. I believe that, and Apple is looking at incorporating it into their Apple credit card. And I think we’re going to see a lot of banks including Apple, although they delayed the release of their Buy Now Pay Later.

I think we’re going to see individual credit card companies add the Buy Now Pay Later features to your actual credit card and basically put a big dent in these Buy Now Pay Later companies. Because what if you could go and let’s say we’ll just use at, we’ll just make up a credit card, the fantasy credit card, right?

Umm. That’s the credit card you use all the time. What if you could do this? You go into the, you’re online, you want to buy these, Cool, you want to buy some cool shoes, right? They were 200 bucks or a hundred bucks. You all want to do it and you just buy it. And then when you get, when you go log onto your credit card, you can go tag that transaction to the Buy Now Pay Later.

So now it gets a lower interest rate, and you have set payments to make on that thing and the bank automatically debits that from your credit card company and automatically sucks it out of your bank account. To pay that $200 off, let’s say it’s going to be 50 bucks for the next four months.

Right. These $200 sheets. I think that we’re going to see the credit card companies themselves start to offer their own version of Buy Now Pay Later, and because they’re losing tons of traffic on their credit cards by missing out on that business. But I think they are going to add it in. For the people, because typically the people who are using it don’t have a credit card.

That’s the problem because they’re using debit cards and that’s why these companies are losing thousands of dollars. Oh, because they’re canceling their cards. It’s canceling the card. So that’s why I think that Apple Pay and some other credit cards are going to start offering that.

That’s my prediction. But when you set up autopay, it doesn’t matter if you change your card. Yeah, but if accounts close! If you close your bank account, yeah! You’re not going to do that. People are going to the extreme of buying stuff. Yeah. And then closing their bank account. YEP! Whoa. Scammers, yeah, they go pound!

Yeah. That’s what they’re doing. So, I think that we’re going to see a big shift in Buy Now Pay Later. I think we’re going to see Apple put it on their credit card. We’re going to see other banks put it on their credit cards. And I think this B2B credit card if these people are well funded enough, I think it’s going to, I think it’s going to work.

If they can get in front of the right businesses to help them promote the card. Yep. It will work for contractors and give them or a better option. Give them 60 days, no interest. That’s pretty cool. That’s good. So that’s the B2B vault for today. Consumer financing and business financing altogether.

Financing. And I think the pay-by-bank thing is going to be a winner! Indeed. It might take time, but it’s going to be a winning product because I think it’s a product that could work! Alright. Especially so that’s it! Yō, wait, what? Happy Entrepreneurship Month. Yes. Follow us on TikTok, Instagram, Facebook, Twitter, and LinkedIn, that’s it.

And YouTube. And find us on all the podcast networks! And, wherever you listen to podcasts, just look up B2B Vault! Boom. Oh, you know what we left out in the last podcast when we were talking about verifying your account, YouTube needs to. Oh yeah. Yeah. They need to like people on there with one video who stole our name.

B2B Vault. Yeah. They stole our name. Like they don’t. And if you need a merchant account, go to B2Bvault.info. There’s an Apply Now button that sends you over to Nationwide Payment Systems. Our sponsor, partner, and friend, to the very end. We love you guys. 10 questions and in five minutes you get a merchant account! PEACE!

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