Transferring EFTs to a new salon - tanTALK

nvstan · 08-09-2015, 05:29 PM

If I buy from a salon that intending to close down their customer base - customer packages and EFTs memberships.
What is the legality as far as charging the memberships - since the old salon have a sign contract with these efts members and not me. Can I starting charging them once their memberships has been transferred to me or I must have a sign contract with them before I charge them ?

And if I can't charge them right away (until I have a signed contract) - should the old salon charge them (even if they close their doors) and then transfer the money to me ?

I am sure there is a way to do it since salons acquire other salons customer base all the time. I am just not sure what is the proper way.

I am aware that credit card companies are very strict as far as recurring transactions and that why I am a bit carful.

Thanks in advance for any advice !

kookyguy · 08-10-2015, 01:16 AM

When they sign a new contract with your salon, you can charge them.

nvstan · 08-10-2015, 11:39 AM

Yes, but until then then not me or the old owner (that have the contact with them) can charge them ?

Michelle N · 08-10-2015, 02:11 PM

You may want to contact an attorney just to verify this info for your location/state/city to make sure you aren't doing anything illegal for this aspect.

My understanding is if the old salon is closing and you open up with new name and tax id in same location you can not collect for those eft's once you take possession, but they also don't have a package at this location any longer either.

If you are buying the business as a whole, that would include the eft's and you wouldn't start collecting on those eft's until the day the paperwork is signed. Everything from that day forward should be going to your accounts. Again, always best to consult an attorney with this sort of thing as every state is going to be different on you do in this type of situation.

nvstan · 08-13-2015, 11:11 PM

You think that are right. Thanks again for your input !

Sunburst · 08-16-2015, 01:31 PM

It's best if a salon has a EFT term stating "We reserve the right to re-assign this authorization without notice.

If it's too late for that, then I would just have the old owners formerly announce to customers that they are re-assigning EFT authorizations to you. An email message, mailing and/or sign at the the store would seem like a diligent effort to me.

Members could cancel if they really wanted to, but I'm sure it will be just fine.

nvstan · 08-16-2015, 06:27 PM

very good point. The salon that I am intending to purchase their customer base suggested another solution - that once they close their doors and "transfer" their customer, packages and memberships to me THEY can keep charging them until the customer walk into my salon and sign a new contract with me or state that they wish to cancel (then they will wire the EFT totals and reports to me). They say they they can keep charging them because
(A) the customer contract is with them (until they change it) so it will minimize cc disputes .
(B) If the customer contact them they can explain that their membership has been transferred to my salon for them to use.
Again, they said that they can charged them until eventually all customer will sign a new contract with me.

Honestly, I am a bit nervous about this solution since I never done it before but...Any opinions on this temporary solution ?

Sunburst · 08-18-2015, 12:39 PM

Quote:

Originally Posted by nvstan

very good point. The salon that I am intending to purchase their customer base suggested another solution - that once they close their doors and "transfer" their customer, packages and memberships to me THEY can keep charging them until the customer walk into my salon and sign a new contract with me or state that they wish to cancel (then they will wire the EFT totals and reports to me). They say they they can keep charging them because
(A) the customer contract is with them (until they change it) so it will minimize cc disputes .
(B) If the customer contact them they can explain that their membership has been transferred to my salon for them to use.
Again, they said that they can charged them until eventually all customer will sign a new contract with me.

Honestly, I am a bit nervous about this solution since I never done it before but...Any opinions on this temporary solution ?

I just realized that you were only buying the database and therefore changing salon name and location on customer too.

Tough one.

Is there any language in the contracts that allows flexibility with changing billing location or name or transferring?

Is the EFT info encrypted as tokens in POS or do you have the actual cc numbers?

Rich · 08-18-2015, 01:51 PM

Let's be honest here. You are grabbing at straws here to maintain an existing revenue stream and you know, or should know, that there is no way in the world you should charge the customers until you have signed them up as your customers. If the old salon closes and then charges the customers you are all ending up on the 10:00 news as frauds and cheats. Don't do it. The short term payoff isn't worth it.

nvstan · 08-18-2015, 11:56 PM

Very wise points everyone. Thank you so much for the input. As much as it is tempting to collect money from day one of acquiring the other salon, it would be too risky and unethical. You are right !

08-09-2015, 05:29 PM	#1 (permalink)
nvstan Join Date: Dec 15 2008 Location: california Posts: 163 Rep Power: 16	Transferring EFTs to a new salon If I buy from a salon that intending to close down their customer base - customer packages and EFTs memberships. What is the legality as far as charging the memberships - since the old salon have a sign contract with these efts members and not me. Can I starting charging them once their memberships has been transferred to me or I must have a sign contract with them before I charge them ? And if I can't charge them right away (until I have a signed contract) - should the old salon charge them (even if they close their doors) and then transfer the money to me ? I am sure there is a way to do it since salons acquire other salons customer base all the time. I am just not sure what is the proper way. I am aware that credit card companies are very strict as far as recurring transactions and that why I am a bit carful. Thanks in advance for any advice !

08-10-2015, 01:16 AM	#2 (permalink)
kookyguy Join Date: Aug 22 2005 Posts: 770 Rep Power: 19	Re: Transferring EFTs to a new salon When they sign a new contract with your salon, you can charge them.

08-10-2015, 11:39 AM	#3 (permalink)
nvstan Join Date: Dec 15 2008 Location: california Posts: 163 Rep Power: 16	Re: Transferring EFTs to a new salon Yes, but until then then not me or the old owner (that have the contact with them) can charge them ?

08-10-2015, 02:11 PM	#4 (permalink)
Michelle N Join Date: Nov 13 2006 Location: Washington State Posts: 172 Rep Power: 18	Re: Transferring EFTs to a new salon You may want to contact an attorney just to verify this info for your location/state/city to make sure you aren't doing anything illegal for this aspect. My understanding is if the old salon is closing and you open up with new name and tax id in same location you can not collect for those eft's once you take possession, but they also don't have a package at this location any longer either. If you are buying the business as a whole, that would include the eft's and you wouldn't start collecting on those eft's until the day the paperwork is signed. Everything from that day forward should be going to your accounts. Again, always best to consult an attorney with this sort of thing as every state is going to be different on you do in this type of situation.

08-13-2015, 11:11 PM	#5 (permalink)
nvstan Join Date: Dec 15 2008 Location: california Posts: 163 Rep Power: 16	Re: Transferring EFTs to a new salon You think that are right. Thanks again for your input !

08-16-2015, 01:31 PM	#6 (permalink)
Sunburst Join Date: May 6 2004 Posts: 72 Rep Power: 0	Re: Transferring EFTs to a new salon It's best if a salon has a EFT term stating "We reserve the right to re-assign this authorization without notice. If it's too late for that, then I would just have the old owners formerly announce to customers that they are re-assigning EFT authorizations to you. An email message, mailing and/or sign at the the store would seem like a diligent effort to me. Members could cancel if they really wanted to, but I'm sure it will be just fine.

08-18-2015, 01:51 PM	#9 (permalink)
Rich Join Date: Jan 27 2000 Location: Topeka Kansas Age: 68 Posts: 564 Rep Power: 25	Re: Transferring EFTs to a new salon Let's be honest here. You are grabbing at straws here to maintain an existing revenue stream and you know, or should know, that there is no way in the world you should charge the customers until you have signed them up as your customers. If the old salon closes and then charges the customers you are all ending up on the 10:00 news as frauds and cheats. Don't do it. The short term payoff isn't worth it.

08-18-2015, 11:56 PM	#10 (permalink)
nvstan Join Date: Dec 15 2008 Location: california Posts: 163 Rep Power: 16	Re: Transferring EFTs to a new salon Very wise points everyone. Thank you so much for the input. As much as it is tempting to collect money from day one of acquiring the other salon, it would be too risky and unethical. You are right !

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