VIP moves to ease VAR credit strain

Distributor set to suspend surcharges on credit card transactions

Resellers have welcomed the latest move by distributor VIP Computer Centre to make life a little easier in the slower months of the year.
The company has decided to suspend surcharges on credit card transactions for certain customers. According to VIP, those resellers with cleared funds accounts ­ those without a credit limit ­ will be exempt from paying the bank’s credit card charges on each order. Usually, each credit card sale carries a 1.5 per cent surcharge, but VIP said it will continue to pay it until the end of this month.
In addition, the minimum order value has been dropped from £250 to £100 to allow VARs to buy smaller quantities without penalties.
Peter Chu, purchasing manager at VAR Platinum Solutions, said: “The No Credit Card Surcharge campaign from VIP is great news for us, as it keeps our costs down, meaning that we can pass these savings on to our customers.”
Karin Jones, sales and marketing director at VIP, told CRN: “We appreciate that it’s tough for retailers in the summer period when business drops off, so VIP has launched a number of initiatives to help support their business. The banks charge 1.5 per cent for using a credit card, but VIP will pay this on cleared funds accounts until the end of September, to help resellers make more margin.”
“We have been listening closely to the channel and this initiative is a direct response to the feedback we have received. The promotion has been running since mid-July and
we are delighted with the positive response so far.”
Jones added: “Minimum order value has been dropped from £250 to £100. This means customers can buy as little or as much as they need without taking any of the risks of holding stock.”
VIP also introduced a Back To School promotion last week, which will include free web banners and posters that resellers can use to bolster their marketing efforts.
VIP expands web site content for resellers