Cedit Cards
1 - 16 of 16 Posts
Joined
·
1,390 Posts
Before I took credit cards, nobody asked. Now, more than half our payments are by credit cards/ debit cards.
I've added about 2% to our rates. That covers my cost plus a little more. All customers pay a little more for the convenience I offer.
As George Z has said many times: I don't have to run around trying to get a cheque or stand in que at the bank. It's convenient for the customer, and it's convenient for me. And I make a little bit more in the process.
Any additional value you can offer a customer allows you to charge a little more. Offer a lot more value and you can charge a lot more.
Brian Phillips
I've added about 2% to our rates. That covers my cost plus a little more. All customers pay a little more for the convenience I offer.
As George Z has said many times: I don't have to run around trying to get a cheque or stand in que at the bank. It's convenient for the customer, and it's convenient for me. And I make a little bit more in the process.
Any additional value you can offer a customer allows you to charge a little more. Offer a lot more value and you can charge a lot more.
Brian Phillips
Joined
·
1,254 Posts
how are you sure about this? there may have been potential customers who wanted to use a credit card, but saw you didn't offer it (or advertise it)
I HIGHLY reccommend accepting credit cards:
a) it will set you aside from your competition hands down
b) many more opportunities are gained with potential customers
c) people will look at you as a more organized/modern company
d) it's easier than 1 + 1 to get signed up (paypal :thumbsup: )
e) there's no reason to NOT get signed up...the only painters not offering them are either ignorant how to offer them, or think they won't make a difference (both of those mentalities are bad for a businessman because it cuts out possible potential)
Joined
·
66 Posts
I agree with Brian and Rich. I started accepting them a few years ago, I am not sorry I did. Sometimes might not use it all month, then the next month will run 4 or 5 jobs or more on it. As they pointed out, it really helps with credibility, and I have found it a valuable tool for upsells, and for those that are "on the fence" about having a job done. They might not want to part with the cash because things are tight, but when I tell them I take credit cards, thats all they need to hear.
Yes, it costs a little a month, but it is a justified business expense, and has more than been worth it over the years. I especially like it for deposits, they call and want to schedule a job, I tell them they can mail me a check for the deposit and I will put them on the schedule when I receive it, or I can take a credit card for the deposit right over the phone and put them on the schedule right now. Most are in a hurry, so they opt for the credit card.
Yes, it costs a little a month, but it is a justified business expense, and has more than been worth it over the years. I especially like it for deposits, they call and want to schedule a job, I tell them they can mail me a check for the deposit and I will put them on the schedule when I receive it, or I can take a credit card for the deposit right over the phone and put them on the schedule right now. Most are in a hurry, so they opt for the credit card.
Joined
·
1,390 Posts
This is a great advantage of taking credit cards. We close a lot of deals this way-- they simply fax in the signed contract with the CC info and it's done. I don't have to drive around to get a check, or wait for it in the mail. And the customer gets on the schedule.
Brian Phillips
Joined
·
5 Posts
How do you go about accepting credit cards. Whats involved?
Joined
·
1,390 Posts
There are lots of options for taking credit cards. I use QuickBooks and PayPal.
QuickBooks is seamless-- one entry to process and enter into QB.
PayPal has several options. I prefer the Virtual Terminal. You log into your account, enter the customer's info, and presto-- the money is in your PayPal account.
I've only dealt with one charge back and I've been taking credit cards for 10+ years. The customer was old and apparently forgot she had authorized the payment (we had it in writing). It took about 30 days to be investigated, but we got our money in the end.
Brian Phillips
QuickBooks is seamless-- one entry to process and enter into QB.
PayPal has several options. I prefer the Virtual Terminal. You log into your account, enter the customer's info, and presto-- the money is in your PayPal account.
I've only dealt with one charge back and I've been taking credit cards for 10+ years. The customer was old and apparently forgot she had authorized the payment (we had it in writing). It took about 30 days to be investigated, but we got our money in the end.
Brian Phillips
I've never dealt with credit cards. Bottom line, how do you get the money?
Is it deposited in the business account electronically? Is there a processing time and something in the mail? If you take a deposit, is there another transaction to be paid in full?
Is it deposited in the business account electronically? Is there a processing time and something in the mail? If you take a deposit, is there another transaction to be paid in full?
Joined
·
1,390 Posts
Yes, the money is transferred to my checking account electronically. I usually have the money in 2 days.
We typically get three payments on a job-- a deposit, a progress payment, and a final payment. Sometimes only the deposit will be on credit card, and the customer gives my crew leader checks for the other payments.
Brian Phillips
aaron61,
Many banks offer the merchant account system.
I have used over the past 7 yrs.; Bank of America, TransOne, Fifth & Third Bank, and now moving to EMS (Electronic Merchant Services-Ohio).
Look at the fees on cards and various rewards cards. The best mode is electronic swipe of card at site, will need portable machine(about $400.- $650. or rent). Also monthly min. fees, and per transaction charge, and how long from swipe of card(transaction reported to company) to showing in your account. Most fees are negotiable. If you have a history, and now accepting cards you are in a better position to get better rates.
If desired I can refer you to a local rep(BNI member). to checkout.
Happy New Year!
Many banks offer the merchant account system.
I have used over the past 7 yrs.; Bank of America, TransOne, Fifth & Third Bank, and now moving to EMS (Electronic Merchant Services-Ohio).
Look at the fees on cards and various rewards cards. The best mode is electronic swipe of card at site, will need portable machine(about $400.- $650. or rent). Also monthly min. fees, and per transaction charge, and how long from swipe of card(transaction reported to company) to showing in your account. Most fees are negotiable. If you have a history, and now accepting cards you are in a better position to get better rates.
If desired I can refer you to a local rep(BNI member). to checkout.
Happy New Year!
Joined
·
5,097 Posts
If you do PayPal (pro) right, it is cheaper than most merchant gateways.
Joined
·
1,390 Posts
I agree with Ken. PayPal can be a very reasonable alternative in some situations.
But in the end, the customer is paying for it (or should be). I pay $1000s each year in credit card processing fees. I'm sure I could save a few bucks shopping the service, but all I really care about is good service with reasonable rates. I don't want my customers beating me up on price, and I won't do it to my vendors.
Brian Phillips
1 - 16 of 16 Posts
