The Closing Guys Experience

No More Credit Card Fees! w/ Dave Iava of Pair Payments

March 09, 2020 Brad Williams
The Closing Guys Experience
No More Credit Card Fees! w/ Dave Iava of Pair Payments

spk_0:   0:00
Welcome back with T C g Pro show from three Days of Secrets. I'm joined with Dave from pair payments. So if you are a small business owner, you know one of the biggest gripes, the things you get tired of this seeing all those credit card fees we know like it's nice, get paid of credit card, get paid, it's guaranteed. But then they're always taken that money off the top. When you see it add up at the end of the month or the end of the year, just like Oh my goodness, have given so much money up. Well, this guy's got a solution that is not only helpful to us, but it protects us. It's pretty amazing, Dave. Tell us a little bit about no payer, what you guys were doing and and why it's so helpful.

spk_1:   0:39
Well, our program is, ah, a lot of merchants around the around the country are offering no feet. Credit card service is what we do that's a little bit different as we focus on protecting you against the compliance issues that are out there with Lisa MasterCard, as well as making sure we understand all the state laws and make sure your compliant when you do it, so it's it's really good that business does it because you could recover those fees, you could do it in a way that's gonna keep you very well protected. So what we do is we actually esseker the feet, and we take the fee at the transaction level. But it's basically what that means is view. If you're charging $100 you add a $3 convenience fee to cover your credit cards, all we're doing is we're taking out $3. We're moving into another account, so it never makes your account, and it keeps your book's accurate. So the $100.100 dollars. But it also protects you against the compliance regulations from Visa MasterCard so you don't profit on the transaction, okay, and that keeps you protected and not find by Visa or MasterCard eso by moving that over, protect you, and then we bounce that off against your credit card transactions. At the end of the month, we wipe out your credit card fees and you never see a statement that has more than our monthly fee on it, which is dollars,

spk_0:   1:44
so that could be pretty big. So $59 is the equivalent of a $2000 with the transactions and

spk_1:   1:53
even little lesson that

spk_0:   1:54
so pretty much any business is doing any business at all. You're saving a tremendous amount of money.

spk_1:   2:00
It doesn't matter. I have companies that do $10,000 in credit cards and it's $59. I have a company that is over 600,000 month and credit cards, and it's still $59.

spk_0:   2:08
Yeah, so kind of going back to the question. I know that everybody asked you. We were talking about this a little bit before we were on the air. Does this make people stop wanting to use credit cards when they're when they're doing business?

spk_1:   2:20
No, that's the interesting thing. And, you know, the initial expectation is that when someone institutes this, the customer has the choice that either use, check and not pay a fee or credit card to pay a fee. Right. And we've seen almost no difference in the way the customer is going to use their credit cards. So my expectation was we go from, like 70% credit card users to maybe 55 what I'm finding is to go from 70 like 69.9. And the reason is is people. People want their air miles. They want the rewards. They want the point for purchase. They want the cash back on dhe. You know, currently, 85% of people that get a credit card shop on reward on Lee and most of noting the care of the interest rate is or even know what interest rate is. They just want the rewards. They shop for the card on a reward basis, so it's not changing their habits at all.

spk_0:   3:05
That's that's really interesting. So just to kind of re cab, what happens in this No feed processing as you're attacking on that service? Be that that extra fee so that the customer pays for the processing opposed to it coming off you? D'oh! But it doesn't seem to affect purchasing because, like you said, people want those points. Even if this point really only don't add up to that full 3% right, it doesn't doesn't seem to affect anything.

spk_1:   3:29
You bowl just lot their rewards. That's long as they have a choice. They're happy.

spk_0:   3:32
So you also mentioned something else, but let's just kind of unpackaged that just a little bit. You said that you guys air s growing the money. Why is that important?

spk_1:   3:42
It's important because one of visas regulations is that you're not a merchant is allowed to profit off the agency. Okay, Visa technically, really doesn't want you to do it, because visas whole process is about using a credit card. And if you could create environment or someone might want to check that goes against the whole business, Miles, I don't want that. So they made their own set of rules, and their role is simply this way. Don't want birch in the process. Now, if you if you if that person does have a reward or they're profiting off there now out of compliance of visa massacre. So by s growing it, that money is moved over that. But he never makes your account. And you're protected because never problem.

spk_0:   4:21
And that's something unique that pairs doing that's different. Another.

spk_1:   4:26
It's a very unique process

spk_0:   4:27
creating it that's so important because you were telling me the fines for not being compliant. Happy? Yeah. What were they?

spk_1:   4:35
$1000 per incident.

spk_0:   4:36
So you're talking. Maybe 15 $2050 in the savings and those credit cards. And you could be paying 1,000,000, 1000? 1000. So you gotta make sure you're doing it right?

spk_1:   4:50
Absolutely. Do it. Do it right and just make sure you're safe protected. And if you do it right, it's a It's a windfall for you.

spk_0:   4:57
Yeah, that's a pretty cool. So what else you know makes makes payer different while says it should look into

spk_1:   5:05
Well, you know, when you're in the credit card business, you know, most people as soon as they know you're in the credit card business, they generally don't want to talk to you. And the reason is that people get they get communicated with 34 times a week on the customer service bar for credit card companies. Usually pretty low. They signed you up. You never hear from again way really want to be a part of the process we want. You know, one of the things that we do is when you signed up with us, we send you out a nice fruit basket because we want you to know that we're part of the routine on DDE not only can we get to that money back? We want you to know that we're always looking for new products. We're always looking for new initiatives in any way we could help you out. We're always gonna be there for you.

spk_0:   5:40
That's great. So they did. Why did you Why did you start this business Where you look how this come about? What's your story?

spk_1:   5:48
Well, uh, funny cause I had I had multiple lives coming into this. You know, I started out, I was in the retail business and then I moved. My degree was in kinesiology, so work toward trading professional and college athletes. And I did that by owning three gyms for a bunch of years. But when I started to look at, I was looking for a model that had kind of a residual income, or I could continue to grow. And this industry is really one of the best industries you could find for that where you constantly you work with new businesses, grower residual portfolio, and really kind of grow on a steady basis. And I love working with other businesses. People are great. You develop relationships with people, you know, it's nice that walk into a restaurant and everybody knows who you are. It's just it's It's a nice wayto live life.

spk_0:   6:31
Yeah, that's a pretty big departure from kinesiology is a little off. I know what I like about what you're doing is one of our big things were on a mission to help small businesses were on a mission. Give this business is a chance to fight amongst. Fight back amongst the big dogs and you guys helping businesses save money. You know, coming up with a way to kind of take this problem, this kind of thing. You said 234% over a year, it adds up. But look,

spk_1:   7:00
look how it adds up to like most people Look at it, they say 3%. It's part of a part of doing business, right? But every single yeah, everything you pay for in business usually has a result that leads to some kind of income. Like, you know, you have the light side and you have to pay for light so you could do business right. You have to pay for marketing so you could gain. Business is always something you're getting back with. A credit card is just disappearing income. So I tell people, Don't look at it against revenue Looking to get your profit margin. You know, if you're profiting of 10% you're giving away 30% credit card. That's your family's money. That's money that could be for college education. Or, you know, by the new power, maybe family vacation, or to doom or marketing to increase your evidence. There's plenty of places that money should be spent other than handing it over to a bank, so so a customer could get rewards. Yeah, you know. And what what ends up happening is somebody's getting air miles that you just paid for. Yeah, and that's the part I never liked about like personally, I don't even have a credit card. I have a business card, but I don't have a personal credit card. I used just data cards because I know the way this game is played, and it's definitely not

spk_0:   8:00
just goes against you, does it?

spk_1:   8:01
Gets my Yes, So I'm in a credit card business. No credit. Yeah, so So you know, that's why I really got excited about this product because this product can change the way small businesses, you know, see their revenue and how much of that revenue could be put toward.

spk_0:   8:17
I love it. $100,000 business. That's $3000 a year. I mean, a lot of small businesses aren't spending 34 $5000 a year on their marketing. That's why they're given that throwing it down the toilet, American Express, Visa and MasterCard that I love it. I think it's great that you're approaching this in a way that protects him because, like you said, if you don't your people a huge liability.

spk_1:   8:41
Well, think about this, too, when you're in a position is a small business on dure. You know, a lot of new businesses or small businesses are always struggling for evidence, right? So what was the first thing they do? They start cutting corners. They start trying to shave money, shave money off a marketing budget. They shave money off this budget, and that always leads to Maybe I could save 50 bucks. I could save 100 bucks. What if that money, that money they're giving away the credit card company could be used to generate more revenue because we all know that you're never gonna make it cutting, cutting and shaving. You're only gonna make it by searching for more evidence.

spk_0:   9:13
Yeah. Yeah, that's the real way to

spk_1:   9:15
kind of grow your business. And that's where I think you know we could We could re navigate this money toward a better use that could help the business grow in a different direction.

spk_0:   9:22
Right? You can only cut to zero, right? That's exactly right. But if you're feeling the top of your phone on with your resource is totally different. I love it. I think you and I think a lot on the same way. Absolutely appreciate you sharing. Think, wait for joining us for another quick episode. And we'll see you soon. Bye, guys.