Costco Connection - July 2008

COSTCO SERVICES

Update

Current news for Costco members

Practical Tip

Payment terminal versus
processing software

To learn more about the complete suite of Costco services,
click on the “Services” link at costco.com or call 1-800-220-6000.

MERCHANTS PROCESSING credit-card transactions through Costco provider Elavon (formerly NOVA) using older dial-up terminals should consider the benefits of upgrading to newer hardware or software alternatives that provide greater security and speed.

Hardware upgrade. If your business requires quick turnaround at the point of sale, replacing a slow dial-up terminal with an Internet protocol (IP) terminal can shave precious seconds off your transaction times. This alternative also yields additional savings by eliminating the need for a phone line dedicated to the dial-up terminal.

Software approach. Elavon’s latest payment software— VirtualMerchant—delivers the features and functionality of a terminal through your existing computer, using an Internet connection to process transactions securely and quickly. It supports credit-card, debit-card, electronic-check and gift-card processing. This hosted solution resides safely behind Elavon’s firewall, minimizing your security liability, and is kept up-to-date automatically.

To inquire about Costco’s credit card processing program through Elavon and to learn more about their equipment or software solutions, call toll-free 1-888-337-1882 and refer to promotional code 83117.

Practical Tip R ight tools help find right vehicle

THE COSTCO Auto Program (CAP) Web site provides a variety of tools that will save you time and money, and will help you select the right vehicle.

Vehicle research. Explore all of your choices—by manufacturer, body type or specific model. Select a trim level, and view interior and exterior photos, standard options, and invoice and MSRP pricing. Build your dream vehicle by adding the options and color you want.

Compare vehicles. Can’t
decide between models? Use the
side-by-side comparison tool to
examine up to three vehicles at
once, or let the advantage-based
comparison do the work for
you, highlighting the differences

Service Update

Phone service
responds to
demand

ACCESSLINE Communications has announced several system enhancements for its new digital phone service for small businesses, including:

s )NCREASED LINE CAPACITY
from two to eight lines
s 5P TO PHONES SUPPORTED
s &ULL SIZE FULL FEATURED WIRE
less desk phones, phones
installed anywhere needed
s %ACH PHONE CAN BE DIALED
directly—a rarely found
feature in a small phone
system

For more information, visit costco.com and enter “smart phone” in the search box, or call toll-free 1-877-917-3419.

Practical Tip

Federal rate
cuts and
home loans

THE FEDERAL Reserve has cut the federal funds rate several times over the past few months. Here are three ways the Federal Reserve rate cuts might affect home loans.

1. Interest rates on home equity lines of credit could drop.

2. Some borrowers with adjustable-rate mortgages (ARMs) could gain relief. ARMs differ in rate adjustments based on the indices or Treasury note they are tied to, but a borrower with an ARM tied to the Treasury averages will benefit from the lowered rates.

3. Home mortgage rates could potentially drop. Interest rates for mortgages are typically tied to the yield on 10-year Treasury notes, not the federal funds rate. But Treasury notes tend to follow the same direction as the federal funds rate. To determine if now is the right time to find your next home loan, visit costco.com and enter “mortgage” in the search box, or call toll-free 1-800-496-8733.

Executive Members: Watch for your annual 2% Reward attached to your renewal notice.

between the vehicles you are comparing.

Safety information. Vehicle safety is an important consideration. Use this helpful tool to view crash-test ratings for your chosen model.

Finance calculator. CAP’s finance calculator will make it easy for you to figure out how much you can afford, see what your monthly payment will be and help you determine if you should take the manufacturer’s rebate or special finance rate.