posted
I don't accept credit cards but recently customers have been offering to pay with one, so I'm considering it. Are the rates competitive and if so, what companies can you recommend for using CC services? What other info do I need to know? Thanks!
posted
I take Visa & MC. I pay around $27.00 a month for the service, +2% on every transaction. It saves a lot of headaches of having to chase after people to get paid. I do not, & will never accept AMEX. Here's why: A friend of mine took a reservation over the phone for a sail trip, & let the client know that they had up to 24 hours before the trip to cancel, otherwise they'd have to pay full fare (I think they had a group of 6 or so). They didn't show. He billed. Guy refused to pay. When me friend contacted AMEX, he told them the story. AMEX asked, "So in the end, did the client receive your service?"- NO, they didn't show- "Then you can't bill them for a service you didn't provide."
That's enough for me to not accept AMEX.
-------------------- Felix Marcano PuertoRicoSigns.Com Luquillo, PR
Work hard, party like a tourist! Posts: 2274 | From: Luquillo, Puerto Rico, USA | Registered: Nov 2000
| IP: Logged |
posted
The company that hosts my website told me I should set up a Pay Pal account to accept credit card payments. That way the customer could just pay me thru the website. They said it would save on the monthly fees, but I imagine they take a bigger percentage per transaction.
Has anyone tried this method for taking credit cards?
-------------------- Silver Creek Signworks Dick Bohrer Two Harbors, MN Posts: 236 | From: Two Harbors, MN USA | Registered: Jun 1999
| IP: Logged |
posted
Make sure enough customers are going to use it to make it worth your while. Paying fees every month regardless if you have customers using cards just sucks money out of your account. We have only a handfull of clients who even ask to use it and are considering cancelling at the end of our contract. Plus, beware! if it is a business card rather than a personal card you may get charged a MUCH higher rate (like we did). The company views a business card as a higher risk thus chargers a higher rate. We found this out after calling and checking why they charged so much...then got charged for calling and inquiring on top of it! Definately shop around.
-------------------- Barb Shuster BlueGrass Design, Inc. 16 Court St. Winchester, KY 40391 Posts: 45 | From: Winchester, KY | Registered: Jul 2007
| IP: Logged |
posted
Most of our jobs pay by CC. We've been taking them since we opened over 11 years ago and wouldn't consider not taking them. It's just part of doing business. Shop around for competitive rates and don't take anything you want want to; we only take V/MC and AMEX. Check with your bank first to see if they offer it.
-------------------- Ricky Jackson Signs Now 614 Russell Parkway Warner Robins, GA (478) 923-7722 signpimp50@hotmail.com
"If I have seen further it is by standing on the shoulders of giants." Sir Issac Newton Posts: 3528 | From: Warner Robins, GA | Registered: Oct 2004
| IP: Logged |
posted
I have a couple of large companies that will pay ONLY by credit card. I bought the phone terminal and pay a flat fee of $7.50 per month for Visa/Mastercard capability. The transaction fees run between 3-4% of the sale depending on the type of client. I got set up through an offer as a member of the USSC. I've checked with other banks for service fees and some are very high. Shop around.
-------------------- Jean Shimp Shimp Sign & Design Co. Jacksonville Beach, Fl Posts: 1265 | From: Jacksonville Beach, Fl. USA | Registered: Nov 1998
| IP: Logged |
posted
I used to take cards. I will not any more. You will need to run at least $2,300 each and every month thru it to break even on the fees. Sometimes you will find yourself wanting to use the CC system in a slower month just to keep up the monthly usage to avoid losing money on the fees. Thats just break even. If you have dead months then it will still cost you at least 30 bux. Then after a few months they start adding on new fees. Statement fee, support fee, batch out insurance fee, charge back fee insurance. There are hundred ways they will lick you. So make sure you ask them up front. Then ask then when does the fees start rising.
-------------------- Leaper of Tall buildings.. If you find my posts divisive or otherwise snarky please ignore them. If you do not know how then PM me about it and I will demonstrate. Posts: 5273 | From: Im a nowhere man | Registered: Jul 2001
| IP: Logged |
posted
Almost all my business is handled with credit cards.. or debit cards.
I pay $30 a month to accept Visa, MasterCard, Discover, Diner's Club (it's included in the package, not like I asked for it specifically LOL) and then $5 a month flat rate for American Express.
I use Authorize.Net for the online processing and I can also run cards manually for the few local sales that don't pay with cash or check.
I know a lot of folks here swear against them but you'd be surprised how much easier it is closing the sale on a big ticket item when you tell possible clients they can use a credit card and make payments. If they're standing at your counter, instead of letting them walk out that door so they can "think about it for a little while" , you can grab them right on the spot and seal the deal.
You may also be surprised by how much more business comes your way because you can accept cards. People don't like carrying cash or checks with them but everyone has their wallets on them at all times, and they have credit or debit cards in there.
-------------------- "If I share all my wisdom I won't have any left for myself."
Mike Pipes stickerpimp.com Lake Havasu, AZ mike@stickerpimp.com Posts: 8746 | From: Lake Havasu, AZ USA | Registered: Jun 2000
| IP: Logged |
posted
Dick, I already have a Paypal account and take credit card payments for my custom Scrabble Boards business/website, but that's a bit different as most customers are out-of-state or overseas and it's easier for them to pay that way, over the computer.
It's different when the customer is standing right there in your shop and hands you the card, as Mike says, you don't want to let them out the door or tell them to go back to their store so they can pay with credit card on their computer thru Paypal.
Good replies so far, thanks, plenty to think about...
posted
Like Jean, ours is through a company that works with USSC. The flat monthly fee is $7.50 and the rate is about 2% when you use the mail order method, which is what the company recommends.
We don't have am automatic connection but just use the old swipe machine and call in the number. We've never had a problem with this company and probably use the service three or four times a month.
It's a great convenience, in my opinion. Lots of government agencies pay with Visa and it's easier than waiting around for your check.
-------------------- Chapman Sign Studio Temple, Texas chapmanstudio@sbcglobal.net Posts: 6306 | From: Temple, Texas, USA | Registered: Nov 1998
| IP: Logged |
posted
Just do it! So many people use them for the company. They don't care how much it costs. You'll get more people to buy on the spot and pay the rush fees.
-------------------- John Arnott El Cajon CA 619 596-9989 signgraphics1@aol.com http://www.signgraphics1.com Posts: 1443 | From: El Cajon CA usa | Registered: Dec 1998
| IP: Logged |
posted
Peter, I'm with Ray...I use the old manual imprinter ($12.00 annual fee) and directly approve and deposit into my account with one phone call. I pay a small percentage of each transaction, and a small monthly fee.
Offering this service has really increased my bottom line. When I do a job, I explain that I wish to imprint their credit card (either as a deposit or payment) but they are offered the option to pay by cheque or credit card when they receive their sign. If they pay by cheque and that cheque bounces in the next few weeks....I can then process their card ....as they HAVE received my services by that point.
My receivables have gone way down, ....I love it. Well worth every penny I spend to have it.
Good luck.
-------------------- Susan Banasky Source Signs Nanaimo, British Columbia sourcesigns@shaw.ca
When in need....go directly to the "Source"!
Proud Supporter of this "Knowledge Network"! Posts: 1323 | From: Nanaimo, B.C. Canada | Registered: Oct 1999
| IP: Logged |
posted
I've been accepting MC & VISA since the late '90s.
The pros: - Some companies pay only with CC, and pay immediately - Government agencies pay by CC, and pay immediately - Allows you to offer an option to the customers who want financing or want to be billed without having to do it yourself - Ease of accepting payments for online orders or phone orders - Allows you to close some sales easier
The cons: - Processing fees (around 2-3% plus transaction fees and/or monthly service charges) - Credit card scams are getting more popular & creative - The processing companies can sneak rate increases by you if you don't pay attention to your statements
All in all, it makes no sense not to accept cards. But I don't accept Amex and won't ever accept it again - they are slower to transfer the money into your account than MC or VISA, and they tend to go back on their rate promises and/or add service charges.
posted
I used paypal for a while. It is a great way to get started. They charge 3% of the transaction which is kind of steep, but no monthly fee, so if you don't use it at all it doesn't cost anything.
My credit card sales continue to climb and I have started using Quickbooks to process my credit cards, I love it there is no more double entry, and there prices are very reasonable. $17.99 per month and 1.72% of the transaction.
posted
I have a wireless terminal. The company gave it to me for free. I pay $25.00 a month for the wireless credit card service. 1.77% on trascations + $.25 per transaction. You usually have what they call a "minimum discount". Ours is $25.00 if all of our 1.77% fees don't add up to $25.00, we pay the difference. If we don't have any charges, then we pay $25 + the $25 service fee. We usually meet the minimum, but still rack up about a $60 bill.
-------------------- Bruce Evans Crown Graphics Chino, CA graphics@westcoach.net Posts: 910 | From: Chino, CA | Registered: Nov 1998
| IP: Logged |
posted
I have a terminal also - and have had one since 2000. Best thing I ever did. We probably run about 10gs a month though it, and yes, I hate to give up 2.2% - but at the same time, I'd rather the money be in my account than on the street - and for that, its worth is weight.
We also have repeat order and most clients just say - 'oh throw it on my card' - or before we ship printing, or launch a web site - same deal.
And for people who say - 'do you have a payment plan' we can always reply -yes - pay us with your credit card and - bam - instant payment plan.
"Some are born to move the world, to live their fantasies. But most of us just dream about the things we'd like to be." - Rush Posts: 1192 | From: Washington, NJ | Registered: Feb 1999
| IP: Logged |
posted
I have taken CC from the beginning. Recently I had a sales rep come in and give me her spreel. I had her wait a week while I went over her paperwork that she left me, then come back and I signed up with her.
My old merchant serivce company took my sale (minus their fees) than passed the sale onto another company that processed the sale, which they also took a portion. The biggest reason that I went with her company is that there was no middle man handling the sales, so I would save on extra processing fees from this middle man copmany. Or so I thought.
Recently I went over a few statements from the new copmany vs the old company. After all the processing fees, service fees, internet fees, etc I was spending approx 4% each month.
I have to get with my rep and complain. The only good thing is that the money is in my account almost over night. The other company tok 3-5 days before it showed up.
-------------------- Laura Butler Vision Graphics & Sign 4479 Welch Rd Attica, Mi 48412 Posts: 2855 | From: Attica, Mi, USA | Registered: Nov 2000
| IP: Logged |
posted
Peter, I just gave your website a quick look-over and there is no doubt in my mind you gotta take credit cards because your work is good enough. You obviously attract a good enough clientelle to offer this convenience and they'll appreciate it and spend more. Just do it and don't look back.
Put the credit card logos on your door, vehicle, billhead, website...
I find it all too easy for ME to spend money; at least I make it convenient for me to get PAID, too.
-------------------- Frank Smith Frank Smith Signs Albany, NY www.franksmithsigns.com Posts: 807 | From: Albany, NY USA | Registered: Nov 1998
| IP: Logged |
posted
I don't use CC and very seldom been asked as most of my work is on site anyway. If I do, like Ray, I tell them there is an ATM a block away in the shopping Centre.
What I do now is my Bank Account Details on my Invoices. Most of my regular customers deposit the funds directly into my account. Saves processing checks and is quicker anyway.
One customer I do a lot of regular work for at their factory ... the money is in my bank account before I get home!
posted
We used to take them and nobody used them, so we quit and now we're considering it again, because a number of folks have inquired about it. It seems times have changed. We tried going through the web site through PayPal and nobody around here has been able to make it work except once.
My boys pay everything through their debit cards and conveniently never have cash which they always mention when we go to lunch together, I've noticed, but then they don't offer to pull out their cards cause they know their mother always has cash. HAHAHAHA!!!!!
Seriously, I've seen them pull out a debit card for a $2.00 item. It seems real popular with younger people. They've got me doing it now too, and I've got to say it's convenient and quicker than writing a check, so now we're trying to get set up again.
Last time a guy came around and set us up with the old knuckle buster and then you phone it in. Now we're wondering who to see and what is this USSC thing. I don't think I'd be interested in a knuckle buster again.
-------------------- Bill Diaz Diaz Sign Art Pontiac IL www.diazsignart.com Posts: 2107 | From: Pontiac, IL | Registered: Dec 2001
| IP: Logged |
posted
LOL Bill! Like I said, people don't like carrying cash anymore.
The ol' "I need to stop at the ATM on the way because I don't have any cash on me" line comes up every time mom and I have lunch or dinner. She always says "It's OK, I'll take care of it because I have a project for you that requires lifting heavy crap."
-------------------- "If I share all my wisdom I won't have any left for myself."
Mike Pipes stickerpimp.com Lake Havasu, AZ mike@stickerpimp.com Posts: 8746 | From: Lake Havasu, AZ USA | Registered: Jun 2000
| IP: Logged |
posted
I'll try that heavy lifting idea, Mike!! heeheee Really, I can't complain. My boys really look after me pretty strong. I remember someone here trying to giving me a hard time and Joe wasn't having any of that! I figure lunch every so often is the least I can do. I AM confused about this credit card idea. I WOULD like to offer it, but I don't want to get into something that isn't profitable for us. Like Bill said, we had that capability for 2+ years but finally gave it up because of lack of use. We were paying fees for no reason. We have quite a few people wanting it again though. I like the idea about doing through Quickbooks. How does that work out? What do I need to sign up for, can I do just THAT feature or do I have to do their whole merchant thing?
-------------------- Jane Diaz Diaz Sign Art 628 W. Lincoln Ave. Pontiac, Il. 61764 815-844-7024 www.diazsignart.com Posts: 4102 | From: Pontiac, IL USA | Registered: Feb 1999
| IP: Logged |
![[Mad]](mad.gif)
Definately shop around.
![[Smile]](smile.gif)
![[Big Grin]](biggrin.gif)
Printer-friendly view of this topic