Accepting Credit Cards for Payment

[Dunbar Plumbing]

Is there a cheap alternative to accepting credit cards? I've looked into this before but always ended up in a situation where it was $400 for the machine in the truck, maintenance fees and a percentage for each transaction.

I've tried to get people to pay me through paypal to simplify things and they look at me like I'm trying to scam them. Even if I describe it on the phone.....most of it goes right over their head.

My largest hesitation is the fact that those who pay by credit card can refute/stop payment within 60 days of the transaction period and can possibly stop the wheels from turning so to speak. If for whatever reason the stop payment is legit....by all means use it. I'm talking of those who abuse the system and try to cheat others out of services in such a way.

I lost 2 calls in 4 days due to my inability to not take credit cards. The people calling were in emergency status and it didn't matter what someone charged.....they want it put on the credit card. I somehow need to incorporate the charges for services rendered somehow when someone springs at the last minute a credit card so I don't take the amount already calculated and lose the percentage fees out of it. That'll dip right into the profit margin for sure.

Somebody I'm friends with in FLA told me to wait till next year; there is a device called "Treo" that is coming out that will allow me to process cc# in mobile status....similar to blackberry and other devices.

In total, I've probably lost about 12 service calls for the year (9.3 months total) due to my unableness to take the card. Not exactly a huge loss but friday I could of landed a $500 job for yesterday morning. That hurt like a gunshot victim with no medical care. :eek: :mad:

[Lancaster]

The way I read it,you want to add a surcharge for people who want to use credit cards,so that they are paying the credit card fee instead of you.I think the credit card company would take a dim view of that.

Their thinking is that you pay a fee to accept their card,thus bringing you additional business that offsets that fee.I will have to research this,but I think there is a prohibition against surcharges.If anybody knows for sure,let us know.

What I think you can do,and not step on anybody's toes,is to raise your prices across the board by the 1 or 3 or 5 percent (as applies) fee,and then offer a discount for paying cash.This would achieve the same goal and still keep the credit card company or bank happy.

[hj]

Many places put a 5% or more surcharge for credit card sales. I don't accept them and haven't lost any sales because of it.

[master plumber mark]

Credit cards are what makes the world go around....

You absolutely got to get one,,,,

dont be a tight ass about the fees.....

the fees are no big deal,
and once you get used to paying them
its like the price of doing lots of business.....

and I mean LOTS and LOTS of extra of business.....

Remember that no one has the money these days
....but they got the plastic
and they want it done NOW.....TODAY...ASAP

They do not want to wait till pay day and they will
find the next plumber who will take plastic for maybe
double what you were going to charge them!!!




so what if you got to pay 2.75 on every hundred dollars
if the bill is $1200, and you would not have gotten the job
unless you took plastic...... how much had you screwed yourself out of??

We have done over 18,000 in one month on credit cards and
I dont think it would have been half that if I took cash only.

I average about $7000 per month, and my fees work out to
27 dollars per thousand.....I consider it cost of doing business..



I got a machine in my office only, I rent it from the bank I do
business with for only 10 bucks month......

If you want to get fancy and get one of those cell
phone--swipey kinda of things you can get one of those too....


I have NEVER been screwed badly by a credit card....
maybe on one or two over the years amounting to squat.

I NEVER call in the card to see if it is good or not, I usually
just take down the numbers on my bill and get around to
running the card through that night or over the nxt few days....


Occasionally I have had a declined one... but it always worked out

Now on my wall right now I got two 500 plus bounced checks
that are good for nothing...

I got an old post about credit cards but I dont now how to find it.....


If you got the credit cards in your yellow page add,
you will see a dramatic rise in sales



the only thing I dont take is American Express.

[Duane Smith]

I would check into the fee for using credit cards. I once was told that this was illegal. Another option is to open up a Paypal account. Most everyone has internet and most everyone has heard of ****/paypal.

[jimbo]

I hate pay pal. I also hate the you-know-what bay, but this is all personal. I would not use the pal and would not use it in commerce , either send or receive.

As far as I know, it is not illegal to charge fees for credit card use, but the card companies will suspend your privileges if they find out.

Out here, the Arco gas station brand is a low-cost brand. For a long time, they were cash-only. But for some time, they have been on board with card readers at the pump, accepting all major credit and debit cards. Recentlty, I noticed that they will accept credit cards for mid grade and premium, but not regular! Regular requires a debit card or cash!

[Cookie]

My husband used to say, " if you want to dance, you got to pay the fiddler." Afterall, the fees, are reasonable. And, they bring business your way. Good advertising, too. Funny, no one has a problem with what they charge, and some get indignant when their prices are questioned.

I know people who will only pay with a cc because it gives them more leveage if something is not done right.

There is alot of information on the net about the surcharges, etc, do a search on yahoo, and type in Credit card surcharges.

[dubldare]

Several years ago, a company I used to work for would have us process CC's in the field, and fill out a separate CC receipt for the customer. The process basically involved calling the co's bank tel # for CC transactions, entering the co's account #, entering the CC#, entering the amount charged, and entering whether it was a charge or credit. If all went well, an authorization # was given, if not a decline message would be given. I only had a decline once, and in that case, an order to reposess the card was given. I didn't reposses the old man's card, but he did find some cash to pay with.

That service, 5 or so years ago, was 4% of sales. The company added a ZON a few years later to process in the office, to eliminate the % fee. If office staff was available, we would relay the customer and invoice info to them. If not, we would record the card info on the invoice with 'pending' in the authorization field.

In all cases, customer signatures were required.


In some cases (after-hours/ weekend jobs) we required a CC # before going out, as service was door to door (home-job-home). In such cases, I informed the customers that they'd be paying me for the time I got out of bed until I got back in bed. At $250/hr at such times, they'd best be serious, as I was.


AmEx and Discover: not unless you like paperwork and waiting for payment. Even though, as a consumer, I prefer to use my AmEx, it is a bear for the small business owner.

[Alexdc99]

Odds are the fees payed to Paypal are far more than what you'd pay for a credit card transaction.

[Dunbar Plumbing]

Thanks for the information/comments. It's going to be a process I'll incorporate eventually into the mix. Don't want to do it but it is like computers.......eventually everyone will have and use one in their home. Its at 60% now.

[Cass]

RUGGED, check out Sams Club. A friend of mine says they have some kind of deal for accepting cards that is offered to members. Personaly I know nothing about it.

[Cookie]

Hi Cass,

Yup, Sams Club has a Merchant Credit Card Processing Service. I got it. I have had it for about 2 years now. There is a number you can call:
1-888-222-0178

There are different rates. And, fees. Sorry, no free lunch in this world. Business to business, is alittle higher in percentages and cents. Got to pay the fiddler if yo' want to dance...

[master plumber mark]

I am not trying to sound like I got money to burn

but like already mentioned through my bank I am
only paying 10 bucks a month to rent a machine and
my rate is 2.3 to 2.7 % on every hundred dollars....

thats two dollars and thirty cents I pay for every hundred
I take in on plastic.....

so for every three hundred dollars on plastic,
basically I have cheated myself out of one meal
at Mcdonalds...

and on the other hand

I dont take in a penny when I sit all day

with my thumb up my ass drinking coffe at

Mcdonalds waiting for cash calls or post dated checks that are good....


just take a "Leap of Faith"

after a month, you wont even feel it.....

[Gary Slusser]

I use a merchant account through PayPal. I've never had a problem (I take all cards) or a complaint against me of any kind. That has earned me admiration from PP but not so much as a cigar. I average 21k per month and have $16,936/month for 2006 as of today and I'm going into the busy season; all through PP and CCs. PP has treated me great and never skips a beat and a transaction takes me maybe 5 minutes max and most of that time is me two finger typing. I pay next to the lowest discount percentage plus $.30 per transaction and $20/per month for their services; the record keeping couldn't be better. I have an online history of every transaction I've done since day one and can print out any or all. So far this year its cost me $3500 including the $20/mo. I've been with them for CCs for over two years and a year prior to that for a few e-checks and Send Money payments, the rest ($125k) was done with personal checks and I never lost a penny.

It is illegal to surcharge for CC use. Saying no to taking CCs is like saying "No I wouldn't give you $20 for that hundred dollar bill"... IMO that's really dumb. But I wouldn't have a bank merchant account unless they gave it to me and reduced my present charges. That's not anywhere near likely, they'd be scared to death of the amount I do. At least they were scared 3 years ago when I guessed I might do a fraction of what I actually have done; who knew! And they wanted hundreds just for an application fee and it wasn't refundable if they said no...

I don't have a card swipe machine so I pay a higher percentage, I do all of it over the internet. A wireless network capable laptop computer and Verizon Air Card (v620 gets you an external antenna capability for weak signal areas) would work very well and allows you to take it anywhere. With a portable wireless battery operated printer (I have an HP Deskjet 460), you can enter the sale and print the receipt on site and be paid for the transaction immediately (right into your PP account in seconds). You can earn a return on your account or transfer the money a second after it hits your account.

Anyone with a better deal... I'd love to hear it.

[master plumber mark]

Gary


it sounds like you got a really great system worked out

and you say that you pay next to the lowest you can pay


which is that about 1.9%?? I am just wondering....


But like you said if someone is willing to give you a hundred

dollar bill for the low , low price of around 2 bucks....

you have to be an idiot not to take them up on it...

[Cookie]

Hi Mark, Hi Gary,

I don't know if this would be a better deal for you or not, but, Sam's is 1.64% + 19cents and business to business, which I do, 1.98%+26cents. Fair to me. And, to me, that is a price of a cup of coffee at Mickey D's. I think I can buy myself a cup of coffee. I was paying more prior to this, 2 years, ago. So far, so good.

Mark, I just bought the movie, Supersize, I think it is called for the kids. If you haven't seen it, rent it, and you will be glad you cheated yourself out of that lunch at Mickey D's! That stuff will kill ya!

[Dunbar Plumbing]

Sure enough, got another call this morning that awoke me from slumber asking if I take credit card. Said no but they said they could pay by check.....scheduled for tomorrow morning to rebuild a 3-handle Gerber T/S faucet.

I actually have a Sam's Club membership.....I buy a great deal from them and sounds like a plan to take advantage of the notion. :thumbsup:


The reason I have hesistancy to the whole thing is being tied down financially to another company swinging my personal info around. It's business yes but I'm sure after a year of taking credit......I'll probably wish I'd done it years ago.

[Gary Slusser]

I had to look my percentage up and I find that since I use their virtual terminal, there is no lower percent. It is 2.2% no matter how much you do over $10000/month. Still I'm more than happy with them, they have a number of benefits that a regular merchant account doesn't have. But hearing from Cookie, I will have to check out Sam's Club. I don't belong, I did many years ago, but I had planned to join in the next month or so. Thanks Cookie.

[Cookie]

No problem, I aim to please, lol. I hope it works out for you.

[abikerboy]

I have dealt with many people in my most recent expensive deal who have a credit card machine back at the office. Give them my card, they call back in with the info while a secretary, or wife or whatever types the info into her machine. A lot of local guys, including a plumber and a heating contracter here do not charge a surcharge for credit cards, but they do offer anywhere from a 2 percent to a 10 percent discount for cash or checks vs. using credit cards or 30 day billing accounts. I'll take the savings anyday, so I have even been known to make a quick drive up the street, insert my credit card into the atm, pay the $1.50 fee to bring back cash, and if I pay off the balance on my first card statement, there's not even any interest!

[Dunbar Plumbing]

Okay, this has become disturbing as another call just came in today....making 2 in the past 2 days, this time I lost the call (stuck Moen cartridge in shower) :mad: Had 4 in the past week. All of this has become an issue in the last 2 months out of the entire 4 years in my company.


I called Sam's, here's what the deal is:

Machine at office $29.95 a month plus % plus $20/month if you don't use it enough to cover base charge. 48 month lease or buy the machine outright for $595.00. IF you start the lease and stop it within the 48 months, you have to pay $90. IF you go the total distance of the lease (which doesn't make any sense) I can purchase the machine for 10% of the original purchase price. <Insane to go that route

Mobile machine < This is the only thing that I really believe is going to work for me since I don't "have" anyone back at the office to run numbers....there would be some down time in those matters if the numbers are incorrect and I want to know immediately sitting in their driveway that the card is good. I could go the lazy/unsafe approach and just take the card numbers down but I would rather make it all happen on the spot.

The mobile machine is $1018 to buy outright, $39.95/month if you lease for 48 months (ripoff) with the same $90 default if you break the lease. early.


I can't do anything on the internet/front of computer. It's not going to work and if I made the mistake of running the numbers wrong.....I'd rather do it in the process of transaction at the customer's home in case the charge doesn't go through. I have no one at the office to run numbers when I'm in the field so I am forced to take another path:


Called my CPA and since he's always dealing with money....I'd figure he'd have some advice to give. He called while I was typing this response and he is set up with a phone only system.

He calls a 1-800 number.....all done by prompts and all you do is run the number/exp. date/type of transaction/amount. Within a minute you get a AUTH #.

The cost is $12/month, 2-year contract and 3% per transaction. < To me, this is the best I've heard yet, I can call in my truck with cc in hand and I just keypad the numbers in and get a return AUTH# without even having to talk into the phone. NO machines to worry about not working in the cold of winter or getting where it won't transfer out.

If I do online transactions I am going to not police myself.....get lazy about running the card right away after a hard day of work....then that leads to other problems all into itself. People can start running that card up and then find out my charge won't push through. My fault entirely.

If what my CPA has is a go, I can't see how that won't be a golden opportunity waiting to be had. He's supposed to forward me the info tomorrow of the company that he deals with. I looked at online auctions for credit card processors....only found 9 and the prices were so low that it scares me to believe that it isn't a good thing to do.

3% of transaction and $12/month is nothing to sweat $30 per $1000 can be faded into the material charges on jobs so easily that I would not even bother to initial a surcharge on the bill for its use. I'm getting mixed opinions from the replies whether it's legal or not; I've seen receipts where I've been charged so it must be a state to state ordeal.

[master plumber mark]

Hey that sounds pretty good for you.....

I could call in every call on a touch tone phone if I so

wished useing the customers phone too,

But ---- I am just too lazy and too trusting ........

I just take the number down then wait till I get to

my machine at the office and run it through.........

sometime over the next few days......


Today I just ran one through for work I did back on Aug 25th.....
as long as the card isnt declined ..........its all good......


I have never been screwed badly enough to make any
changes to my lazy system yet.....


but I been screwed dozens and dozens of times by check.....

and their is NO EASY WAY to check out a check
untill it BOUNCES back to you......



Rugged... the real fun begins when you get your
machine and have to learn how to get aprovals from their
accounts then how retreive your money from their bank....


its no big deal now,
but it was a little confuseing in the first month..
....

So I wont even go into that , but if you want to get up to
speed on how to send "batches" of bills through
your machine just let me know.....

[Terry]

Costco Member Pricing for VISA/MasterCard Transactions*

Internet Merchants
1.99%
Plus 27¢ per transaction
Mail/Telephone Order Merchants 1.99%
Plus 27¢ per transaction
Retail Merchants

1.64%
Plus 20¢ per card-swiped transaction
Costco members also receive discounted prices on equipment (http://www.novainfo.com/costco/pos-terminals-software.asp).

I've been using Costco, for visa and mastercard, the money is in the account the next morning.
It takes a little more time for Amex, and the percentage is a little higher.

If you run the cards on your computer, it's free for the online access.
If you buy a "swiper" you can run the cards on the homeowners phone line and get the 1.64%
I've been using the computer and paying the 1.99%

But I'm also talking, no monthly fees to use it.

If I had to pay 3.00% each time, I would be paying more than 50% more for my visa charges.
I think I paid about $75 for the program, one time. And I've been using it ever since.

http://www.novainfo.com/costco/index.asp

[Dunbar Plumbing]

To Mark,


From the way the CPA described it.....I can call from any phone.....I would be going back to my truck and processing by using my business cell phone once they know the price and do it in private just in case there are any issues to be worked out.


To Terry,

I don't have any Costco's around in this area. :( I don't know if I could even join without getting the full benefit of being a cardmember and the like......but the 1.99% cost and no monthly fees is worth investigating.

Found 2 locations within 25 miles of my location...so I'll check it out.

[Terry]

To use costco, you have the buy the $100 a year membership.

But just being able to use their credit card processing would be enough.

You also get 2% off of your purchases there.
I bought a lot of food and furniture.
Last year I got back $167 on my purchases. That means I saved $67 over the cost of my membership.

[master plumber mark]

I hate to beat a dead horse here.....

I honestly dont know which is simpler but

I do it all through my National City Bank Business account

I get a monthly breakdown amiled to me for all of all my

transactions from the "clearing house for Visa, MC and

discover" with what to deduct all added up into one lump

sum.....

and I get my normal monthly bank statement showing

when the loot was deposited into my accont ........

its never screwed me out of a cent yet and its pretty easy to

tabulate the numbers


I have heard horror stories from different people
about having to keep a close eye on some of these
places...playing a shell game ...or never getting the funds

or clerical errors....

I got a lawmower repair shop buddy that got so pissed off he
stopped takeing all plastic.......due to errors
I told him that it was a dumb move



so I do it only though my first love....my bank....

[abikerboy]

Rugged, how about if you were to go with the mobile unit, and increase your labor/material charges by the percentage of the surcharge (maybe even slightly more to cover your cost of equipment)? Then if someone is paying by cash or check, you could offer them a discount equal to whatever your percentage increase is, minus of course what the machine is costing you? As a consumer, I would have no arguements there, and it may even push me to find a way to pay you with cash or check. Even if I had to use credit, then the lost discount is something that I would just have to live with. Even the gas stations around here offer gas at charge card prices, and they knock an extra 3-5 cents per gallon off for a cash transaction. Sometimes I cannot pay cash, so I stick my card in the slot, and keep my mouth shut. This way, you are offering me a choice, and making the simple choice more profitable to me, yet youre also offering me a way out even if I lack the cash. Many people will appreciate this.

[Cal]

Want to thank you all ,,,,,,,,, Been in buisness 18 years ,,,, always thought," Hey SCREW plastic , I don't need it ,checks are fine " After reading these post and getting several request latley to use CC's I have come on over !

I was on the fence till the other day; Lady I've known since Jr. high needed a new 80 gal electric h/w/h but just DOES NOT have the $ to give at this time from the bank . She says , " Cal do you take credit cards " . I had to say no , ,,,she went with one of the Big Boys , spent MORE $ and I lost out on it. Plus I couldn't help my friend ,, that SUCKED !

Decision made .

I'm like Mark ,,, I LOVE my bank ( B of Amer.) 2.12% + .40 per transaction /$ 10 month for the service . Small price for LOTS more buisness !

[Dunbar Plumbing]

I had to drudge this up to let everyone know that I thank you all for the advice on this subject and I processed credit card transaction #450 yesterday.

From 2006 to now is a pretty good stretch and I take it as second nature.

If I "didn't" take credit cards I would be losing sales instantly, especially in this down economy for many.


It's the cost of doing business, no doubt, and I have a plumber or two that will call me from time to time asking who I use and what it costs.

I actually prefer the credit card transaction as it keeps me from going to the bank and flirting with the women who are not available and are always showing tons of cleavage.


Yes...hmmm...this is a dilemma that has me troubled in real life.


But I keep going back :D for more! Moar!!!!


Down boy! Down boy! :p