Each of these payment methods has certain added costs to you the buyer. They
also can add delays in shipping your order. An approximation of these impacts is visually
shown in the plots immediately below.
Delays
Costs
Click on thumbnail image to enlarge
Certified Check/Money
Order These forms of payment are always acceptable. Money orders can be obtained at
your post office for amounts up to $700 for a fee of just $0.80. Larger denominations and
certified checks are available at most banks. Advantage(s): We can ship
your order quickly since we don't have to wait for your check to clear our bank, we are
able to pay any deposits required by the factory for large orders. Disadvantage(s):
You have to obtain the payment from an institution, there is a short mailing delay to send
the payment to us, should be used only when you know the company you are dealing with
since you cannot cancel the payment after it is cashed (see Note 2
below), you do not have use of your funds for a longer period of time (see Note 1 below).
This method is not acceptable for most orders shipping outside the USA.
Standard Check
This form of payment is always acceptable in any denomination. Advantage(s):
Easy to generate - simply write a check and mail it, we are able to pay any deposits
required by the factory for large orders. Disadvantage(s): We must wait
up to 10 business days for the check to clear our bank before shipping, there is a short
mailing delay to send the payment to us, should be used only when you know the company you
are dealing with since you cannot cancel the payment after it is cashed (see Note 2 below), you do not have use of your funds for a longer period of
time (see Note 1 below). This method is not
acceptable for most orders shipping outside the USA.
Wire Transfer
This form of payment is always acceptable in any denomination. It can be setup
through your local bank. Advantage(s): No mailing delay since the
transfer of funds is electronic, we can ship your order quickly since we don't have to
wait for your check to clear our bank, we are able to pay any deposits required by the
factory for large orders. This method is always acceptable for orders shipping
outside the USA. Disadvantage(s): You must set this up through
your financial institution after we give you the necessary account information, should be
used only when you know the company you are dealing with since you cannot
reverse the
transfer (see Note 2 below), you do not have use of your funds for a
longer period of time (see Note 1 below).
Standby Letter of Credit
This is a form of guarantee used in conjunction with an open account (see further
below). It is available through banks and can be setup at the same time that the open
account with us is formed. It is only relied on in situations when you are unable to pay
our invoice when it is due. In this case, the bank will pay the invoice for you. Advantage(s):
If your credit history does not permit us to give you credit on an open account we can do
so with this vehicle. Disadvantage(s): There are bank fees to set up a
standby letter of credit, it can take several weeks to set up the agreement.
Confirmed Letter of Credit
This is an agreement set up through your bank to pay certain amounts when agreed
upon milestones have been met. At least one of these milestones is shipment of the order
as shown by presentation of proper shipping document. Confirmed means that our bank will
pay us even if your bank is delayed in paying for whatever reason. Letters of Credit are
usually used only for international transactions. Advantage(s): Minimizes
financial risks for international transactions, we are able to pay any deposits required
by the factory for large orders. Disadvantage(s): There are bank fees to
set up a letter of credit, it can take several weeks to set up the agreement.
Letter of Credit
This is an agreement set up through your bank to pay certain amounts when agreed
upon milestones have been met. At least one of these milestones is shipment of the order
as shown by presentation of proper shipping document. Our bank will pay us only after your
bank send the funds. Letters of Credit are usually used only for international
transactions. Advantage(s): Minimizes financial risks for international
transactions, we are able to pay any deposits required by the factory for large orders. Disadvantage(s):
There are bank fees to set up a letter of credit, it can take several weeks to set up the
agreement.
Credit Card
This is the most common form of payment used by our customers. However, it
may become
impractical for orders totaling more than $5,000 to $10,000. Advantage(s):
Payment can be entered with order online, your credit card is not charged until your order
ships, we do not have to wait for funds before shipping your order, if your order is not
delivered you can dispute the charges (this has never occurred in our case). Disadvantage(s):
Large orders may exceed your card credit limit or our processing
guidelines. And it may not be acceptable for most orders shipping
outside the USA.
C.O.D. (Cash on Delivery)
The freight carrier collects payment upon delivery of the order. Actually two
checks are usually collected, one for the products and a second to cover the carrier's
freight and C.O.D. fee. This method is no longer used by NoOutage.com.
i Escrow Service
We have not used this service as of the date of this writing. It acts as an
intermediary between buyers and sellers. The full cost of the order plus a fee is
collected up-front. We usually agree to split the fee in half with you. Funds are held
until a couple days after delivery so that you can inspect and verify you received what
you ordered. Then funds are released to us. Advantage(s): The agreement
is consummated easily and quickly online, minimizes risk for both the buyer and seller. Disadvantage(s):
You must pay the full amount up-front to the escrow service, we cannot process your order
until the escrow service receives your funds, the fees are 1% to 2%, the maximum order
allowed is $50,000, we may find it difficult to pay any deposits required by the factory
for large orders..
PO/Open Account (Purchase Orders)
In this payment method we review your credit and trade references and if you have
excellent reports and an on-time payment history we may be able to grant you an open
account. We then send you an invoice when the order ships and request payment by a certain
number of days after shipment. We rarely use this payment method because to offer the
lowest prices we cannot absorb the overhead associated with processing purchase orders,
invoices, credit checks, etc. There are also cash flow issues that result in additional
costs. Therefore we discourage the use of this payment method. Advantage(s):
You have use of the funds until sometime after receiving the shipment. Disadvantage(s):
We may find it difficult to pay any deposits required by the factory for large orders, our
increased costs for managing the open account may have to be passed on to you in the form
of higher prices or surcharges.
NOTES:
- To help offset the disadvantage of paying cash up front we can sometimes offer a
discount of 2-3% off the quoted price. This helps to compensate you for the lost use of
these funds while you are waiting for delivery of your order. For maximum security we
deposit these funds only in a federally insured account until they are paid to our
suppliers.
- It is important that you know and trust any business or individual when you
choose to pay up front. This is especially true for mail order and internet
businesses since, unfortunately, fraud is more common in these areas. It is not
difficult to check out the integrity of a business. Other past customers can give
you recommendations.
You can also order a report on the business through the local Better Business Bureau where the firm is
located. In many localities this can now be done online at no charge. Another
way to get detailed financial information is to order a credit
report on the company. There are some web sites that allow you to do this online
for $15 or less.
