Q For Those That Accept Credit Cards

StairJunkie

Just wondering who accepts credit cards here and how do you handle those transactions. I know most credit card companies if not all do not allow you to raise the price of a product to make up for the cost that the companies surcharge you. But when dealing with high end products that can cost thousands of dollars, that surcharge can be a significant and meaningful amount which could potentially make the project not worthwhile for the contractor or sub.

Has anyone that accepts credit cards been able in negotiating lower surcharges or found a way to work with them?

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dougchips

We raised our prices 5% to cover credit card fees and waiting for large checks to clear. Everyone pays the extra 5% since we don't take cash.

You need to figure out how much business you plan to do each month on credit cards and then shop for:

1. Low monthly fees.

2. Low rates on MC, Visa, Discover and Amex.

3. Portable card readers- monthly rental fee-cell phone fee---does the extra cost warrant the rate discount for you?

We use quickbooks at .8 or 1.8 for MC/Visa, 2.43% on Discover and 2.95% on AMEX. The money is in my bank within a day or two unlike checks for over $10,000 that take 10 days +/-. 80-90% of our credit card business is Discover or Amex, unlike everyone else for some reason my clients do not use the cards with the cheap rates.

Be careful when you shop the salespeople will offer you a low rate and then nail you with fees.

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kirbymurphy

Gas stations did it and are doing it again, and they did it overtly.
Just build a bit into the job, but tell them there is an x% discount for cash.

If you get a card swiper you get a better rate than a NIH transaction. NIH stands for card Not In Hand. They are riskier and cost more to process. Your bank probably offers CC service or can refer you.

Avoid the door to door guys. They rent you a $300 machine for $90 a month for 4 or 5 years. They say you can cancel anytime, but it's tough. I just use Paypal. I've had problems with transactions on both sides, but they always worked out. One benefit of PPal is you can tell the customer that YOU never have their credit information.

Get a signed letter of acceptance from the customer in case they try to do anything funny like cancelling the transaction.

Get a signed letter of acceptance from the customer in case they try to do anything funny like cancelling the transaction.

Get a signed letter of acceptance from the customer in case they try to do anything funny like cancelling the transaction.

Get a signed letter of acceptance from the customer in case they try to do anything funny like cancelling the transaction.

Get a signed letter of acceptance from the customer in case they try to do anything funny like cancelling the transaction.

StairJunkie

Ahh... PayPal, didn't even think of using that. We will definitely investigate using that option. Have you qualified for their "merchant rate" transaction fee" if so what is it? I wasn't able to find it easily on their site.

As far as signed letter of acceptance, you're talking about the contract/proposal for the job i'm assuming or something different?

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kirbymurphy

A signed acceptance of the work as completed.

"I Joe Blow attest that I am satisfied with all labor and materials performed and supplied by Kurt Kontractor." (see your attorney)

Some people play a game where they dispute a charge with the CC company. This letter can protect your ASSets.

HomeSealed

We have the HO sign a credit card auth form along with the contract for the set amount. We use the merchant service that quickbooks offers: good rate with no bs swiping machine and the accompaanying lease payment.(been there, done that)...As far as compensating for the fees, you just need to make sure your prices are adequate to aborb them. That way when you get a check or cash it is just a bonus....We used get paid mostly through home equity lines, but since the housing market dropped it has been almost exclusively credit cards so we just anticipate it.

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CatAlii

Factor in the cost of accepting credit cards when you figure your overhead so that you are covered regardless of what payment method your clients select. If you'd like you are allowed to offer a cash discount (as opposed to adding a surcharge for credit card which you are not allowed to do) for customers who pay by check.

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Cathy

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