Developments - September 2016 - 58

OPERATIONS Caution about Your Finance Options BY LARRY GILDERSLEEVE A lthough we are not a cashless society, we are certainly moving in that direction. And in many respects, the resort timeshare industry is largely cashless. Annual dues and assessments are paid with credit cards, and both credit and debit cards are utilized when timeshare owners and their guests, as well as rental guests, are in residence at resorts. Even before they arrive, consumers are using phone-enabled "apps" with credit card features to conduct a myriad of transactions. With the alternative being either payment by check or cash, it's impossible to imagine consumer-focused companies in the timeshare industry not having access to credit card processing capability. Without this capability, companies would be out of business overnight. And it has happened. To say that the timeshare industry is misunderstood by the credit card processing industry would be a great understatement. Timeshare is widely regarded as "high risk" based largely on wrong information, or no information. Yet this categorization results in many consequences, among them 58 - Developments arda.org higher costs of doing business and greater vulnerability to cancellation by processors. When credit card processing companies and their sponsor banks speak of "risk", it's a relatively simple concept. It involves the delay in delivery of goods or services following a consumer giving permission, either in person (known as Card Present) or by mail or over the phone (known as Card Not Present), for a charge on their credit card. There could be two adverse occurrences that could financially damage the processor and the bank. Sometimes, financial distress may lead to the merchant defaulting on its obligation to deliver the promised goods or services, and/ or the consumer is dissatisfied for whatever reason, cancels the transaction and demands a refund (chargeback). In the view of the processor and the bank, the earnings are measured potentially in fractions of pennies per transaction, yet the financial exposure could be in the millions of dollars. Some of the largest credit card processing companies haven't even bothered to understand the timeshare industry, and so simply put it on their "prohibited industries" list. This means they will not accept applications from merchants conducting business in that industry. Others, while not publically proclaiming timeshare merchants as undesirable, they are simply not actively seeking them, which has the same net effect. This isn't a problem for the larger timeshare development companies still in active sales. Their access to credit card processing is assured by many factors-including affiliation with a parent hospitality company, decades of sustained business success, the sheer volume of transactions, and so forth. With respect to this subject, size does matter. It is generally understood that if a merchant in any industry isn't processing at least $10 million annually in credit card transactions, they are regarded as insignificant and thus have no negotiating leverage regarding their processing costs. At $20 million they get noticed, and at $30-$40 million, they're approaching significance.What is the message in all the foregoing for service companies focused on consumers in the timeshare industry? Pay close attention to these expenses, and picture life without this capability. http://www.arda.org

Table of Contents for the Digital Edition of Developments - September 2016

UP FRONT
FIRST WORD
AROUND THE INDUSTRY
TRUSTEE TALK
INTERNATIONAL BRIEF
RESEARCH
MEMBER MATTERS
SPECIAL HR SECTION: PART II
CUSTOMER CARE
CREATIVE RESALE STRATEGIES
FRONTLINE TACTICS
RENOVATIONS: “IF MONEY WERE NO ISSUE?”
WHERE DO THE DOLLARS GO?
HOAS AND THE NEW OVERTIME RULES
CAUTION ABOUT YOUR FINANCE OPTIONS
FOCUS ON: REPUTATION MANAGEMENT
FACES FROM THE FRONTLINES
MEMBERSHIP UPDATES
Developments - September 2016 - 1
Developments - September 2016 - Cover1
Developments - September 2016 - Cover2
Developments - September 2016 - 1
Developments - September 2016 - 2
Developments - September 2016 - 3
Developments - September 2016 - 4
Developments - September 2016 - 5
Developments - September 2016 - UP FRONT
Developments - September 2016 - 7
Developments - September 2016 - FIRST WORD
Developments - September 2016 - 9
Developments - September 2016 - AROUND THE INDUSTRY
Developments - September 2016 - 11
Developments - September 2016 - 12
Developments - September 2016 - 13
Developments - September 2016 - 14
Developments - September 2016 - 15
Developments - September 2016 - 16
Developments - September 2016 - 17
Developments - September 2016 - 18
Developments - September 2016 - 19
Developments - September 2016 - TRUSTEE TALK
Developments - September 2016 - 21
Developments - September 2016 - INTERNATIONAL BRIEF
Developments - September 2016 - 23
Developments - September 2016 - RESEARCH
Developments - September 2016 - 25
Developments - September 2016 - 26
Developments - September 2016 - 27
Developments - September 2016 - MEMBER MATTERS
Developments - September 2016 - 29
Developments - September 2016 - SPECIAL HR SECTION: PART II
Developments - September 2016 - 31
Developments - September 2016 - 32
Developments - September 2016 - 33
Developments - September 2016 - CUSTOMER CARE
Developments - September 2016 - 35
Developments - September 2016 - 36
Developments - September 2016 - 37
Developments - September 2016 - CREATIVE RESALE STRATEGIES
Developments - September 2016 - 39
Developments - September 2016 - 40
Developments - September 2016 - 41
Developments - September 2016 - FRONTLINE TACTICS
Developments - September 2016 - 43
Developments - September 2016 - 44
Developments - September 2016 - 45
Developments - September 2016 - 46
Developments - September 2016 - 47
Developments - September 2016 - RENOVATIONS: “IF MONEY WERE NO ISSUE?”
Developments - September 2016 - 49
Developments - September 2016 - 50
Developments - September 2016 - 51
Developments - September 2016 - WHERE DO THE DOLLARS GO?
Developments - September 2016 - 53
Developments - September 2016 - 54
Developments - September 2016 - 55
Developments - September 2016 - HOAS AND THE NEW OVERTIME RULES
Developments - September 2016 - 57
Developments - September 2016 - CAUTION ABOUT YOUR FINANCE OPTIONS
Developments - September 2016 - 59
Developments - September 2016 - FOCUS ON: REPUTATION MANAGEMENT
Developments - September 2016 - 61
Developments - September 2016 - FACES FROM THE FRONTLINES
Developments - September 2016 - 63
Developments - September 2016 - MEMBERSHIP UPDATES
Developments - September 2016 - 65
Developments - September 2016 - 66
Developments - September 2016 - 67
Developments - September 2016 - 68
Developments - September 2016 - 69
Developments - September 2016 - 70
Developments - September 2016 - 71
Developments - September 2016 - 72
Developments - September 2016 - Cover3
Developments - September 2016 - Cover4
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