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Head Light Bulb Changer
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Discussion Starter · #1 ·
Do any of you use the credit card readers (that attach via USB to a phone or tablet) to accept payment? I was thinking about getting one for payments on small jobs. I have no experience using one, but I'm thinking it would be a nice option to give a client.

From my (uneducated) point of view -

Pros -
A nice option for the HO
Seem more professional
Not worrying about a check bouncing

Cons -
How long to get paid by CC company?
What if they dispute the charges? (even for something as simple as a chip in paint or fingerprints on something)
How much % do they charge?

For anyone using one, I would like to hear about your experiences and also recommended companies/products to use.
 

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2.75% For Square which seems to be the most popular since they were the first and a smidgen less for others

Pay anywhere, go payment, paypal, quicken in on it now too.

I look at it last month and concluded the large amounts we run in the 4 and 5 figures does not make sense with the holds and the costs.

Smaller 3 and 3 figure transactions seem to love it. Use the search. There are many many threads on it here on this forum

Some have a second option where it's about thirty a month and then the percentage drops 1% and then if you don't swipe and key in transactions, it goes back up. That's the quick and dirty. Google will give you all the options on page one results. I just tried and see Capital One is in the game now too. Didn't see them last month.

It's a fast growing industry.
 

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I have a square, I've only used it a few times in 2 years, but it's an option for the homeowners
I agree. It's nice to have the option to offer homeowners the option to pay with a credit card. I think it also reflects on our professionalism as a company.
 

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Head Light Bulb Changer
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Discussion Starter · #7 ·
Thanks guys! I'm going to get the Square and try it out. It's only $10 and you get that back as a credit when activated, so really nothing to lose. The goal is to use it only for small amounts (say less than $300) on repair type jobs . Money is tight for a lot of folks and I think having the option of paying by CC for an unforeseen repair can only help both parties. I lost what would have been a profitable pipe-burst repair last month because I don't take CC's. HO (repeat client) had to have it fixed and went with a larger company because of that.
 

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I don't have a swipe reader, but I can take CC's on my phone. I have it integrated in my invoices, when I email my invoice, there's a option on it to pay by CC. Haven't used it yet though. it's nice to have as an option, one more way to try and get your money.
 

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Talking Head
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5,388 Posts
I ran a over $30k through Paypal last year. I do have the smart phone swiper but I don't use it as I prefer invoicing and don't really want to be swiping cards in people's homes. If I was doing more service work then I think it would be great.

I've had a VERY positive response to accepting credit cards and most of my customers seem comfortable with the Paypal name. I have a price on my proposals and a 3% discount for cash or check payments directly below it so the processing fee is immaterial to me.

I do know that I have $27k in sales over the past 12 months that I can directly attribute to accepting cc's. That is directly from my customers.
 

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Techno Wizard
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Credit card readers?

Do any of you use the credit card readers (that attach via USB to a phone or tablet) to accept payment? I was thinking about getting one for payments on small jobs. I have no experience using one, but I'm thinking it would be a nice option to give a client.

From my (uneducated) point of view -

Pros -
A nice option for the HO
Seem more professional
Not worrying about a check bouncing

Cons -
How long to get paid by CC company?
What if they dispute the charges? (even for something as simple as a chip in paint or fingerprints on something)
How much % do they charge?

For anyone using one, I would like to hear about your experiences and also recommended companies/products to use.
Been through several...PayPal, GoPay, Square etc. Have settled on Rectangle. Low transaction rates (2.43%) Takes all cards including Amex, money in the bank next day. No monthly fees, no contract :thumbsup:, No complaints.:clap:
 

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I would look to see who your bank works with for merchant services. I looked at square but didn't like the fact that they could hold my money for up to 30 days when you make a certain number of charges. I forget all the details about why, but it seemed they could hold for big charges or multiple charges.

If you go with a merchant that has a relationship with your bank you might get better results with when your cash from charges is available. I can get any amount I charge to a customers card deposited into my account on the second business day.

David
 

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I would look to see who your bank works with for merchant services. I looked at square but didn't like the fact that they could hold my money for up to 30 days when you make a certain number of charges. I forget all the details about why, but it seemed they could hold for big charges or multiple charges.

If you go with a merchant that has a relationship with your bank you might get better results with when your cash from charges is available. I can get any amount I charge to a customers card deposited into my account on the second business day.

David
The problem I found here is the bank wants you to work with a bulky card reader that runs on the GSM cell network, this means buying and paying monthly for a SIM card just so the thing can communicate with the merchant network.
 

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I use Square and it charges 2.75% per transaction. No monthly fees, etc.
Works great for me. Money deposited @ midnight each night.

Hope this helps you.
 

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I do Media Blasting most of the time but on the side I also rep for "Central Payment, A TSYS Co." which is one of the largest credit card processing companies out there. Central Payment has rates as low as 1.25% and your funds are deposited in your account within 48 hours. I you have questions, please call me at 775-392-0396. I am able to give you a standalone terminal as well as a mobile swipe for your phone or I pad for free. I sign up accounts all over the phone and fax. :thumbup:
Bob Moore
 

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I do know that I have $27k in sales over the past 12 months that I can directly attribute to accepting cc's. That is directly from my customers.
Ethan, are you saying that they would not have been customers if you did not accept credit cards?
 

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Workin' Hard for the $
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I use Square as well, though I don't use it often, as most of my customers write checks. I had them hold money for 30 days once due to reaching a limit. I followed their procedure to raise my limit and haven't had an issue since.

I am not trying to call anyone out, but I don't see the objection to taking large payments via CC because of the fees. 2.75% is 2.75%, no matter how you slice it. 100 charges of $100 each would be $10,000 and you would loose $2.75 on each transaction for a total of $275. The $10,000 charge is going to take $275 at one time, but your net is the same. Anywho, just a question I have.
 

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I use square.
Money is in my acct the next day usually, and there's only processing fee not a monthly like most companies charge. Plus the reader is free or cheap with a rebate
 

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Hair Splitter
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I ran a over $30k through Paypal last year. I do have the smart phone swiper but I don't use it as I prefer invoicing and don't really want to be swiping cards in people's homes. If I was doing more service work then I think it would be great.

I've had a VERY positive response to accepting credit cards and most of my customers seem comfortable with the Paypal name. I have a price on my proposals and a 3% discount for cash or check payments directly below it so the processing fee is immaterial to me.

I do know that I have $27k in sales over the past 12 months that I can directly attribute to accepting cc's. That is directly from my customers.
There dispute resolution heavily favors the payer. I have heard to many horror stories about money being deducted after being deposited due to a dispute.
 

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Hair Splitter
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I use Square as well, though I don't use it often, as most of my customers write checks. I had them hold money for 30 days once due to reaching a limit. I followed their procedure to raise my limit and haven't had an issue since.

I am not trying to call anyone out, but I don't see the objection to taking large payments via CC because of the fees. 2.75% is 2.75%, no matter how you slice it. 100 charges of $100 each would be $10,000 and you would loose $2.75 on each transaction for a total of $275. The $10,000 charge is going to take $275 at one time, but your net is the same. Anywho, just a question I have.
I just started charging a fee for cc use.
 

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Talking Head
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Ethan, are you saying that they would not have been customers if you did not accept credit cards?
Yes I am KAP, the customers explicitly stated that they hired me to do the projects, or added options, at that time because I accept credit cards. You and I have covered this territory before.

I have two small projects for a customer in March(about $2500) who just emailed me last month to confirm that I did accept cc's. When I replied that I did she was relieved and said that had just had an unexpected expense and would have had to postpone if I did not.

That's solid enough for me.
 
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