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Generally, customers never bother asking this, especially for jobs in the 5000+ range. Today I had one ask me to put a job on a credit card, and Im only uncomfortable because incase anything goes wrong, I don't want the customer to be refuting the charge. I don't plan on things going wrong, but its very uncomfortable to know that with CC's these days, acustomer just calls the issuing bank to get a full refund few questions asked.

I do allow this on smaller things, or as partial payment.

Anyones view on this?

-Chris
 

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Generally it isn't so simple as a no questions asked refund. Most banks are pretty hard core about it, they may put a hold on the funds but 9 out of 10 times they will end up being released again.

The biggest thing is to have a signature on a sales slip. Any transaction without a signed sales slip creates its own problems. You won't even be dealing with the fact of whether the transaction can be disputed for reasons between you and customer having a problem with the job, the dispute will be about whether it was ever even a valid charge in the credit card companies eyes if the customer disputes and you can't produce the signed reciept which is the first thing the credit card company will be asking for.
 

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AAPaint said:
You should read the other thread about accepting credit cards just two posts below this one.

With that said, tell them to do a cash advance with the credit card and pay you cash. They get their rewards you get your money!

For what its worth, most credit cards that offer points or miles do not count cash advances to accumulate them. I have started taking Paypal so they can pay with a credit card. I add 2.3% for it.
 

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Savdog01 said:
For what its worth, most credit cards that offer points or miles do not count cash advances to accumulate them. I have started taking Paypal so they can pay with a credit card. I add 2.3% for it.
Yeah but who is paypal going to go after when a customer ask's the bank for a refund? The apr on a cash advance is usually higher than using credit. And usually a home equity line is way below any cc.
Red flag time.
I would be suspicious unless I know the customer.
 

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Knyte,

What is the concern about your customer not paying because of a credit card?

Have you actually ever been burnt?

See others posting a concern about being paid.

Don’t we want your customer satisfied so we get additional work and referrals?

It has been my experience when a contractor gets into trouble with an owner it comes down to one of three issues.

Don’t let these issues exist and chances of a customer not paying are extremely remote. When these issues do not exist the chance of selling additional work and getting high quality referrals goes up dramatically.

1. Communication Problem – Often occurs when the contractor mails a bid and fails to meet with the complete buying party to discuss the specifics of the project.

2. Unrealized expectations – Often occurs because the contractor did not meet with the complete buying party (husband and wife) and the missing spouse raises an unexpected issue while the project is in progress.

3. Unforeseen additional costs – The project unexpected goes up in price. For example, two coats of paint do not cover properly and a third coat is required. Removing wall paper damages the substrate. Removing a roof discovers rotted wood. Stucco and plaster cracks during window installation.

With a complete buying party presentation and a contract that explains what is included and what is not included, as well as, what might trigger additional costs converts these issues from being losses to being win-win profit making change orders.

Just my 2 cents…Richard

PS: We are processing well in excess of $100,000,000 on credit cards and there is no discussion in our group about customers blocking payments.
 

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Richard Kaller said:
PS: We are processing well in excess of $100,000,000 on credit cards and there is no discussion in our group about customers blocking payments.
If I was processing $100,000,000 in credit cards I wouldn't be worried either, however if I was processing $5000 in credit cards l would have the same concerns as Knyte260.
 

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Mike,

What is the concern?

If the customer is not happy do you expect them to pay you...regardless the method of payment?

Do you feel the customer will use the credit card to rip your off?

There is a lot more exposure with large amounts of credit card purchases than a single purchase for $5,000.

Just seeking to understand.

Thanks...

Richard Kaller
 

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We have accepted credit cards for the past two years and have had no problems whatsoever. It amazes me but people will actually use them for high ticket items. I would say over 50% of our customers pay this way.
 
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