Cash payments

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gra electric

Member
Location
whitney point, NY
romexking said:
JohnJ0906 said:
The company I work for now charges 5% extra for using a credit card - to offset the merchant fee. QUOTE]

Although I don't have the specific law in front of me, I think you will find that it is illegal to charge extra for credit card purchases. I am also 100% confident that it is a violation of the merchant agreements your company has with the CC companies.
Beside that, the reason for accepting CC is to be convenient to your customers, receive payment quickly, also that your customers will tend to spend more money. The cost of processing the payments should be included in the budget, and the overall hourly rate your company charges should be adjusted to account for this overhead.

How would you feel if you had to pay extra when you go out to dinner, or buying merchandise at a store? I wouldn't like it one bit!
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I have never heard of a law telling me I cannot charge more to cover a business expense. I have seen many gas stations charge a few cents more per gallon of gas bought with a credit card. It would be much smarter to not let the customer know they are being charged extra by adding it into overhead, or increasing all job totals to account for a "possible" credit card transaction. Just my thoughts

Gerry
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emahler

Senior Member
they don't charge more for CC payments, they just charge less for cash payments.

This topic has come up before, it is state specific. Some states prohibit you from charging more if they pay with CC, but allow you to give a discount if they pay with cash...other states allow you to charge additional fees specificially if they pay with CC...
 
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ishium 80439

Senior Member
Location
Denver foothills via the Horn of Africa
I occaisionally will offer a small cash discount on small service work if it happens to correspond w/ timing when I'm planning on going out of town or have something else planned where having some green in my pocket will be worthwhile. I did it once on a larger job and won't do it again. As others said it costs the same to do the work regardless of payment method. Live and learn- the wad of green dazzled me.

As far as upcharging for CC payments, some municipalities around this area are starting to charge a fee for paying for a permit w/ a CC.
 
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Rawls007

Member
The only discount I sometimes give for cash is not tacking on the sales tax for reasons we all know...........but won't admit. And only to people I know personally.
 
peter d

peter d

Senior Member
Location
New England
The last time I was in California I distinctly remember going to a gas station that had two prices listed - one for cash and one for credit. The cash price was less, obviously.
 
bikeindy

bikeindy

Senior Member
Location
Indianapolis IN
People ask me if I give a discount for cash on occassion. I don't like the question because it insinuates i will cheat on my taxes. I just say no I don't get a discount at the supply house for paying cash. I don't take CC's and have only had maybe 10 people ask me if I take them. Well customers that is, I have phone calls frequently from companies trying to get me to take them, they say it will increase sales. I don't think so.
 
quogueelectric

quogueelectric

Senior Member
Location
new york
peter d said:
Can you blame him? ;)
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I will meet him at the pawn shop lots of nice tools there and cheap if you can negotiate. Two weeks ago I bought a chainsaw in there and when I walked out a group of 6 thugs were chasing a young man down the road. They turned thier attention to me and asked me why I was smiling . I pointed to the chainsaw and they all ran. Btw it would have started it had gas in it and started on the 2nd pull. Crazy cracker with a chainsaw 1 Bridgeport thugs zero. True story I cant wait to go back for the hedge trimmer.
 
peter d

peter d

Senior Member
Location
New England
quogueelectric said:
I will meet him at the pawn shop lots of nice tools there and cheap if you can negotiate. Two weeks ago I bought a chainsaw in there and when I walked out a group of 6 thugs were chasing a young man down the road. They turned thier attention to me and asked me why I was smiling . I pointed to the chainsaw and they all ran. Btw it would have started it had gas in it and started on the 2nd pull. Crazy cracker with a chainsaw 1 Bridgeport thugs zero. True story I cant wait to go back for the hedge trimmer.
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I figured they would just be amazed that a cow was at a pawn shop!
 
stickboy1375

stickboy1375

Senior Member
Location
Litchfield, CT
quogueelectric said:
I will meet him at the pawn shop lots of nice tools there and cheap if you can negotiate. Two weeks ago I bought a chainsaw in there and when I walked out a group of 6 thugs were chasing a young man down the road. They turned thier attention to me and asked me why I was smiling . I pointed to the chainsaw and they all ran. Btw it would have started it had gas in it and started on the 2nd pull. Crazy cracker with a chainsaw 1 Bridgeport thugs zero. True story I cant wait to go back for the hedge trimmer.
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I dont support pawn shops, for a variety of reasons.
 
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