I was just wondering how many (if any) of you guys accept credit card payment. Down here hardly any landscape/hardscape company does, with the exception of some of the big lawnmowing and maintenance firms. I suppose its due to the fees. My bank's merchant facility is a lot cheaper than most for BankCard, Visa & MasterCard...but I don't know wether it is worth it. Is it common in the US for landscapers??...Just curious.
Two sides to this. I did for a few years but only got a few requests, though I neither advertised that I accepted cards or brought it up to customers. So I dropped using them. Here they want 3-4% (with all fees included). Doesn't sound like much but if you do a $20K job, that's, perhaps, $700. And rememder that $700 comes out of your bottom line (net profit). So if your net profit on a $20K job is $2,000, you just gave up 1/3 of your profit. I know people say, "just raise your rates to cover that 3%." But raising your rates...is raising your rates. There's a down side to raising rates, which is losing jobs due to a higer price, or else we could all just randomly add 3% onto our estimates for the hell of it.
...on the flip side, there's no doubt people like to buy stuff without feeling like they're actually paying for it. Especially, in America.
... and some will say it makes payments easier. Could be. Personally, I've never had much problem with getting payments. I have a harder time finding the time to do the billing.
I offer VISA / MC but am thinking about adding 1.5% to the total price if they want to pay with credit. Maybe I should put it this way... I'll give them a discount if they want to pay by check but their total will be 1.5% ( or so ) higher.
I know here in the US people just love to rack up their airline miles by using those cards ( at least that's what my customers tell me) but last Summer I didn't realize how much was going to merchant service fees until I had one month where they nicely pocketed $1400.
It's convenient for my customers but enough is enough, I'm just a landscaper!!!
Credit cards do have an expense but you do have more clout when you want to get paid or if there is a problem. You should also look at how much money goes uncollected and see if you would actually make more if you do offer credit cards. As mentioned earlier, people do love their airline miles, Geoffrey Dollars and 2% cash back.
As far as charging more for using credit cards, I believe the credit card companies expressly forbid you to charge a customer more if they use a credit card. I would check your terms before you do anything like that.
I know the gas stations do things like that but as you pointed out I think they offer you a lower price for cash, which is really just a safer way of doing what you are suggesting.
There are always creative solutions to every problem.
I can get 1.25% on a Merchant facility. I didn't really think of it from the point of view of attracting more customers but I do want to try and pick up on those customers who drag out the final payment when the job is completed.
in the past 8 years, ive only had one customer want to pay with a credit card and that was this year. I allowed them to pay their deposit through paypal because thats all im set up to use and had them write a check for the remaining balance........i dont plan on offering credit cards or advertise it because there just isnt a outcry for it
__________________
Matt Thompson
Thompson's Landscaping
Henderson, NC
We accept credit cards and for our regular maintenance customers we automatically charge about 15 customers every month for their bill. We also have many customers pay there construction projects with credit cards. We are talking about anywhere from a couple hundred dollars to tens of thousands at a time.
Though today the card is less used.....2 days money is in my account.....can't beat that.
Budgeted monthly customers.......don't even have to create an invoice or even mail anything...........I do......accepting credit card, I don't have to mail anything.........Think maybe I'll drop mailing them anything.
The biggest complaint I've heard regarding Paypal is that they have a history of siding with the customer in a dispute, no matter how much evidence is on your side. I use Paypal when I have to, but I prefer a check.
I saw a yellowbook ad with paypal listed as a payment method. Is the loss of the 3% worth the hassle? I could list it just to entice the younger buyers rich from ebay I suppose.
The biggest complaint I've heard regarding Paypal is that they have a history of siding with the customer in a dispute, no matter how much evidence is on your side. I use Paypal when I have to, but I prefer a check.
papercutter has it right: paypal will ALWAYS side with the customer, regardless of the evidence. paypal is for personal transactions; if you want to offer an alternative for business transactions, just break down and accept credit cards.
I just researched this topic for the firm I work for last week.
Quicken has a mobile app that allows you to accept credit card payments from your mobile phone.
Less than 2.4% for mobile device entry from the customers home. A receipt is immediately emailed to your customer and to your office as a record of the transaction
$19.00 month fee. $10.00 if you add the Quicken pay app to your website.
Allows for multiple users, so your employees can collect from the customer upon completion.
Funds are deposited into your business account within 48 hrs.
Ties seamlessly into Quick Books and QB Pro software
Please note: Shop around, as I found several offers online where the initial fee and three months service were waived.
Similar Threads
