Credit Cards

[gregstar]

Ive seen Phil mention Credit card payment plans several times. Is this really worth it? What % do they take? I bill monthly, how do I get the # and process it for them? I have mostly retirement clients, do they go for that?
Greg

[jfishenter]

I have been contacted by different banks trying to get me accept credit cards. I have been told that it cost $50.00 a month for the machine and 3% of each charge. No initial costs or set up fees. So. for each $100.00 you accept in credit card payments, it would cost you $3.00. I have thought about doing this. Method of payment would be indicated on the service agreement as Credit Card, with ther card #. You just bill there credit card each month for payment. It's a small cost involved, and you won't have to wonder if "the checks in the mail".

[Tommy GS]

Do it!

[gregstar]

credit card

Thats two yeahs and no nahs.
Thanks

[PearceTurf]

My 2 cents:

I think credit card payments are a great feature and I would be in favor of anybody that wants to do it.

Many people use credit as a means to pay everything nowadays. Some float their balances all year long while others pay off the balance each month. It can make the world easier to live in. I also agree that waiting on the mailman is no fun sometimes.

However, and this is a big however, Seniors typically do not use credit cards. My mother is 82 and her husband is 87 years old. They have plenty of money and plenty of credit cards. If and when they ever use them, they pay off the balance immediately. People that lived through the Great Depression often refer to credit cards as a 'necessary evil'. I was taught all of my life to use them sparingly. Like you stated above, most of my customers are elderly and prefer to write me a check for my services. I doubt that I can get even one of them to use their credit card as a form of payment.

If most of your current customers are elderly, you may have a hard time convincing them that it would be an easier form of payment. Hell, my mother doesn't even want to learn how to use her VCR, much less her brand new DVD player. You may need to do a cost/benefit analysis in order to determine if this is the right thing to do for your current customer base.

[gregstar]

credit card

Let me think "outload"

I got stuck for about $1800 in "03. Not a-lot but still sucks.

At least 60% came from clients on renters properties that just moved on. Balance came from people I think make it their living by not paying.

3%(credit card charge) of $60,000 is $1800. Sounds feasable and the typical "renter is not a retiree.

Perhaps I should consider.............

My bank wants $1200 for a machine and other charges just shy of $2,000!

Where did you get your machine? Free?

Greg

[CCLS]

Pocket the 3%, don't give it to the credit card companies. If you are weary of certain clients, make them prepay. My company policy reguarding non payers states:


"YOU SCREW, WE SUE"

Plain and simple, I always get my money.

[nick11380]

I accept credits on my website: http://nicks.unfranchise.com but I haven't offered credit cards as a form of payment to my lawncare customers yet. If I accept credit card payments off my website all I have to do is get there credit card information and enter it into the computer and the money is transfered into my checking account.

[clclawn]

quick books offers a credit card service. a small montly fee and 2-3 percent. Its much cheaper to do it on the puter the buy the mach.

[Seascape]

What would be wrong w/ passing that 3% on to the customer?
mike

[Phil Nilsson]

Build the cc % into your prices ... it's 48 hour money, put thru sales everyday ... month end billings cost you time and aggravation collecting ... account receivables = "dead money." if you do it right it will cost you "zero".

Phil

[indmowing]

We also accept credit cards in our business. And for us it is one of the best things we have done. When accepting credit cards, we simply charge an extra 2%. We have on all our invoices etc that we accept credit cards and also state that a 2% charge does apply. I simply then charge the 2% as a seperate charge (like I would any other fee or item). Pretty simple actually.

By the way, our bank charges 2%, different to yours, just incase you were wondering why 2%

We also accept credit cards for our members. So if one of our members needs payment up front or whatever and that can only be done by credit card the customer calls us and we take teh money on their behalf. The customer gets charged the 2% as always (not the contractor) Works well!

Credit Cards just make it Sooooo Easy for people to pay you the money.

We have had people say (on the smaller transactions) that 2% is nothing, it costs them more to write and send us a cheque. And that's true on teh smaller transactions.

We also encourage EFT (electronic frund transfers) especially on the higher priced items. No percentage charge but quick and convenient for all!

Ebony

[Yard Boy]

I've done a fair amount of research on accepting credit cards and I can say it's about like buying insurance - very hard to compare side by side to get what works best for you.

I do know this much:

Swiped rates are less than keyed rates.

There are many wireless products including card readers that plug into compatible cell phones and Blackberry's via a data cable and then send infrared signal to your thermal printer and prints a receipt. Customer is impressed, transaction is more secure (no account numbers to get lost or stolen), and you get swiped card rates.

Visa and Mastercard rates are lower than Amex and Discover.

There are companies out there who don't charge a setup fee for equipment, their fees are reasonable and their interest rates are competetive. PM me for a good contact.

I've been considering this for several months and I know I will eventually accept cards when I find the right combination of product and service.

Billy

[MEvans857]

How do you tell a customer it's going to cost them 2-3% more if they use there cc. If I went to a store and they say you can write a check for free or charge the fee for cc I would be handing over the check. I'm very intrested in accepting them as well but looking into to all the details. I use my cc 95% of the time both in the busn. and personal, just because it's so easy.

[GrassMaster]

Hello Everybody:

I use my cc 95% of the time both in the busn. and personal, just because it's so easy.

How many of those businesses tell you that it's going to cost you 2% to 3% more to use your credit card? I've never had anyone tell me that & the average consumer doesn't even know that you pay that fee?

It's all built in to your Pricing of Products & Services sold. You never mention things like that to the Customer, because it just brings on more questions that's unnecessary.

In most cases you go to 2% to 3% more trouble trying to collect by other means of Payment. At my Shop that Charge Card Money is deposited the Next Morning into my checking account.

Also think about that nice warm feeling you get all over when you have a bad month & you realize that you paid the Charge Card Company $200 to $600 that Month so folks could use their Charge Cards. It's such a Special feeling, I've been doing it since 1992 & it just gets to be more Special as the Years go on.

Those fees work out to be enough to make payments on a Nice Truck?

Not that many people used charge cards in 1992, but over the years over 50% of our business is Charge Cards...

But think of all the time & trouble you go to if you for just get one bad check.

Now since I have to pay this ransom every month so others can have an easier life, I've developed a new way of thinking.

I mainly use my charge card for Internet Purchases & I will use it at the Big Cooperation (Big Box) Stores...

But I never use it at Privately Owned Businesses because I know what it feels like & they all appreciate it too. They also return the favor to me.

It's a great way to start a conversation with the business owner & while doing so, ask them for their business! Networking, I Love it!

It's a necessary Evil in my business. I can't tell you how many calls we get a month asking us if we take charge cards? If we didn't there's a lot of Business that would be going somewhere else.

Folks are more likely to spend more money on their charge card too, so it makes upselling a lot easier!