JB
We started taking credit card about a year ago.
To date, 18% have paid using CC - go figure -
FYI - It's better to get paid and to pay a CC fee than to not get paid at all
It Is In Your Best Interest...
Only eleven years in business, but like you I've had exactly one client ask about paying by credit card.
This morning at about 5, I woke up and suddenly realized I could do both. Since there are only transaction fees involved, I don't pay any extra to have both options.
Funny how ideas like that creep up on you when you'd least expect it.
It Is In Your Best Interest...
There is actually several federal agencies that need maps, etc.
and pay only by credit card. Otherwise, there is a long purchasing
procedure to go through.
It Is In Your Best Interest...
I've only had one also. Many of my clients direct deposit their payments directly into my account though.
It Is In Your Best Interest...
> Many of my clients direct deposit their payments directly into my account though.
I've only had 1 federal contract, but it involved direct-deposit, which was fine with me.
CC Fees In and Out
One thing you need to check, that we found out the hard way is that the same percentage is charged to your account if you make a charge then a refund.
So it's tough to charge a card then the customer cancells and you have to issue a refund. So, what you have to do is tell them up front, that if the job is cancelled, that there is a service charge (or order processing fee) of double your rate to issue a refund.
That's something to think about, but we've only had 1 cancellation.
We started accepting cards a few years ago, and while I hate to pay the 2.84%, sometimes it's a deal closer. It's convenient for the customer, and they could possibly earn cash back or points on their card. We use a Web pay service and it works great. You need to set up a form to fill out, (over the phone) to get the necessary info, and after the charge is placed - shred the form for security purposes. (Don't want to be negligent with their info - identity theft and all)
You may want to raise your rate to cover the percentage, then offer a discount for cash or check.
No cards accepted but I do...
..work with the people. Only for individuals and usually with retired folks on fixed incomes.
I just finished a $700 survey for an older couple with idiotic neighbors. It turned out my guys were right...whew.
They wanted credit, to which I said no. This is what I did. I got $200 on site, another check for $200 post dated one week (when the wifes monthly payment came in). The remaining check was post dated 30 days, until their monthly stipends arrived. I called them to make sure it was ok to cash.
I've also offered folks 50% now, the rest in 30 days. I've never gotten burned.
But I will only do that with individuals. Most typical contractors, developer types, etc know that 10 days = 30 days = 90 days and we are stuck in that cesspool of waiting.
I may look into that squared up thingy. Sounds intriguing, especially if I can do it on my iPhone. If so, I'd just tell the people I'm adding the 3% to the bill if that is how they want to do it.
