Credit card ?'s

[e57]

So wondering how many take credit cards?

If so how much of average biz pays that way, and what price ranges of project would pay that way? More importantly do you think it drags in more biz because you offer taking them?

I was talking to my banks merchant services guy today about it - found out some interesting things about how they work and the rates... 2-3% depending on which card the client pulls out of the wallet... I can only imagine me wincing, "Oh no -not that one - ah - maybe that one?" While the agreement says you cant bill more for credit - or tell the client that (Get caught - get blacklisted) - but offer a 'discount for cash' like the gas stations do... I looked around at a few EC's and some of their ad's - example:

~We accept both cash and check and request that you specify your mode of payment upfront because we offer a discount to cash customers.~

Or

We offer discounts for cash payment.

(Although 'discounts for cash or check' sounds better....)

Anyway - I figured this might be a good way to draw in small jobs... $30 per grand aint bad since you got it by offering it as an option. Someone paying for a service change on one might cost you $60-120+ - but you got it - and got paid.... But whats the limit of what someone would put on a card - and how would you stomach a number of sizeable jobs on them?

I also quizzed the guy on a bunch of other stuff - like credit cards as deposit etc. That too was interesting....

 

[satcom]

So wondering how many take credit cards?

If so how much of average biz pays that way, and what price ranges of project would pay that way? More importantly do you think it drags in more biz because you offer taking them?

They must help, because after the last 2 years, we has plenty of EC's in our area fold up and go away, but not one of the newer entry service companies that accept credit cards went under, they are still operating, and in some cases adding trucks, they don't worry about the 3% plus service charges, because credit worthy customers, are what every business wants for a customer base, years ago we noticed the increase in business after we started accepting the cards..

 

[480sparky]

I don't. I have less than one inquiry per year about accepting CCs. For me, it's just not worth the annual expense to accept one per annum.

 

[yucan2]

The ability to accept them comes in quite handy at times.

 

[cruzJD]

I found it opens up doors to a bunch of residential customers in the $2,000 to $6,000 range. I have also had small commercial costumers charge $5,000 to $15,000.

I would rather pay the 3% than to have to deal with a costumer not paying.

 

[Volta]

I do. Sometimes months might go by without running any, and occasionally a good handful in a short period. I don't think of it as purely increasing profit, but it is simply a convenience I offer. Usually the amounts are just a few hundred, though I happen to be doing a 5 digit T&M job now, wholly paid for this way so far.

It is hard to know if the doubling of this project through extras is due to the fact that the customer doesn't need to have the cash available or not, but it may be helping .

 

[satcom]

I found it opens up doors to a bunch of residential customers in the $2,000 to $6,000 range. I have also had small commercial costumers charge $5,000 to $15,000.

I would rather pay the 3% than to have to deal with a costumer not paying.

It does seem to capture that range, and we would rather see someone else deal with the bottom fish customers, yes the commercial accounts sure do like to use the credit, and they bring in some of the long term work, the way i look at is a little of a lot is better then a lot of nothing.

 

[zbang]

Also, for continuing accounts, a CC can take the place of a blanket purchase order- you can charge (and get the money) the next day, and not have to wait for a billing or check-writing cycle.

 

[Sparky555]

I take MC and Visa, not Discover or AmEx. The fees are part of OH, no cash discount. The monthly fee and rate add up to about 3%. It's a secure payment and saves a trip to the bank, altogether very good business. It's worth taking CCs. Sometimes it's the first thing they ask before they sign for the big repair or upgrade.

 

[e57]

Also, for continuing accounts, a CC can take the place of a blanket purchase order- you can charge (and get the money) the next day, and not have to wait for a billing or check-writing cycle.

I had asked the bank rep about doing progress or scheduled payments on them - and as for as explaining and authorizing that with a customer that seemed fine to him. But was a little dubious about credit cards as a means of collection - a scheme I was concocking... e.g. "Hey - that ones 15 days over-due - now lets whop the final billing on it..."

I take MC and Visa, not Discover or AmEx. The fees are part of OH, no cash discount. The monthly fee and rate add up to about 3%. It's a secure payment and saves a trip to the bank, altogether very good business. It's worth taking CCs. Sometimes it's the first thing they ask before they sign for the big repair or upgrade.

I used to do service work for a company that took CC's and they did a very brisk business in storms in the middle of the night - where the customer may or may not have the mula, or don't know if they have the mula in the bank account for repair in the middle of the night. There were times where I would be handed a check - only to have the check service decline, or the customer would see me running the check then hand me the card instead.... Apparently 'check services' are seperate 3rd party with my bank but I'm looking into that too...

 

[satcom]

I have to say the three things that kept the phone ringing and gave up work in both good and bad times were, truck signs, yellow pages, and accepting credit cards.

 

[LarryFine]

I don't. I have less than one inquiry per year about accepting CCs. For me, it's just not worth the annual expense to accept one per annum.

Same here. We know of exactly two jobs we didn't get because of not accepting cards, and that's over 10 years.

Besides, we recently found out that we can accept CC payments through our PayPal account, and have already.

We're also sure to talk about payment types before we finalize the pricing, so there is no 'added' service charge.

 

[Volta]

...We're also sure to talk about payment types before we finalize the pricing, so there is no 'added' service charge.

Just a little more labor involved? :roll:

 

[LarryFine]

Just a little more labor involved? :roll:

Yeah, that's it!

 

[e57]

Besides, we recently found out that we can accept CC payments through our PayPal account, and have already.

So you've been taking CC's under "paypal" - as opposed to some other (regulated) CC merchant service under a different name... And being charged about the same.

BTW I HATE BANKs.... But all of the reasons I hate them are some of the freewheeling they've done to take over the ecomomy - but at least there are laws in place to keep them in check - PayPal avoids all of that by 'acting' like a bank without being one... Other merchant service are required to just make the transaction - take money and put it in the bank of your choosing by law. I talked to a few people who warned me against it because they had problems getting money back out of paypal on a few occasions.

 

[LarryFine]

I talked to a few people who warned me against it because they had problems getting money back out of paypal on a few occasions.

I don't leave a penny in my "account" there.

 

[ElectricianJeff]

I don't leave a penny in my "account" there.

I do leave some money on mine. When I got set up with paypal I got a debit card for that account. It has come in handy when I'm out of town and need some parts without a company check. I've never had a problem getting money from paypal. Usually takes about 3 days to hit my bank.

 

[Chamuit]

Same here. We know of exactly two jobs we didn't get because of not accepting cards, and that's over 10 years.

Besides, we recently found out that we can accept CC payments through our PayPal account, and have already.

We're also sure to talk about payment types before we finalize the pricing, so there is no 'added' service charge.

Accepted my first credit card that way last year. Only get asked 1 or 2 times per year.

 

[e57]

I do leave some money on mine. When I got set up with paypal I got a debit card for that account. It has come in handy when I'm out of town and need some parts without a company check. I've never had a problem getting money from paypal. Usually takes about 3 days to hit my bank.

Thats because it takes a trip to Luxemburg first... The complicated relationship just makes me leary. I'd rather simplify it by having the money chucked directly into my bank account - not collecting interest for Ebay off-shore.

 

[LarryFine]

I do leave some money on mine. When I got set up with paypal I got a debit card for that account.

We already had company debit cards, so PP doesn't get to see any of that action. It's none of their business, in my opinion.