[jwholden]

When I sent the deposit to my roofer there was a note on the bottom of the proposal.

"Credit cards are acceptable for payment with the addition of a 2.35% handling charge."

I never wanted to be bothered by the paperwork and added costs of credit cards but apparently they are getting easier to use. If I can make the client pay for the convenience, and make it easier to collect payment I'm all for it.

My wife sells a product and she accepts cards by going to a website and entering the information manually, no machine rental, only get charged when you use the card.

Do any of you folks out there accept credit cards? Advantages/disadvantages?

[agla]

Who has not purchsed a big ticket item with a credit card that they would not have without it?

I think that it will not only make the difference in having someone choose you over someone else, but it makes upsells and add ons not seem intimidating to the consumer.

Let the credit card company deal with the late payments. It takes away the bounced check and reduces the late payment.

It is far easier to get a signature on the line than to give them the wiggle room of using the standard delay tactics "have to transfer accounts", "I'll have my secretary cut you a check", "mailed it out this morning", yada yada yada ....

I think that it is a major plus.

[Lanelle]

Some people are so committed to earning air flight mileage with their credit card purchases that they loosen the purse strings considerably when making a buying decision. I had one gentleman tell me that he didn't much care what his wife chose as long as he got the miles from the credit card. Also, if the card is declined, you know right away and can deal with it promptly, unlike a bounced check which takes lots more time to discover.
So, faster decision, faster confirmation of viable payment and faster receipt of funds in your bank account--------what's not to like? The fees. Check the terms carefully. Some banks offer much better deals than others.

[Slimber]

Charge is a very reliable and reasonable service to have.

[jwholden]

Slimber,

Thanks for the link. I've got some reading to do!

[Stonehenge]

I'll have to look for the online way - I investigated this a few years ago, and the setup fee was more than I could swallow. $500 or so in total, plus per transaction fees, and a pretty high rate.

Though that contractor that is charging more for credit card purchases is likely doing it illegally. Or maybe 'contractually contra-indicated' is a better term. For the paperwork I had in front of me, they spelled out very clearly that you were allowed to offer a discount for cash purchases, but you were not allowed to charge a credit card client more for using the card. If they were to find out they were going to cancel the contract and do some other unfriendly things.

I didn't see this as much of a hurdle; I'd just charge everyone a few bucks more to recoup the 2-3%, or have a 'cash' price listed at the bottom of each contract....Kinda like the gas stations used to do.

[Tim]

In this buy today pay tomorrow world, accepting credit cards definitely will be an advantage against your competition. It will also delete many excuses that customers use when it comes time to pay for the jobs you have finished. The most popular one puked out to us was the old "I'm still trying to get our home equity loan closed!"

The fees for all of the credit card companies are different. The percentage that you are charged, is usually determined by the volume in which you use their services.

Master Card and Visa are normally the best route since their surcharges are the least, and most people have this type of card.
American express charges much more than than MC & Visa, and so does Discover. That is why many places do not accept Discover.

Setup can be a pain in the butt, but I believe you will find it to be worth it! Tim

[HRLand]

The gas station I go to charges .05 more for credit. Do all card companies have that policy?

[Stonehenge]

I'm not sure, to tell the truth. But I think I understand the reason - they don't want their customers to think they are getting socked with higher prices for using their credit card.

Just a matter of perception I suppose, upcharge for credit versus cash discount.

[Tim]

I spoke with our office manager today, and I stated something that was incorrect. Discover has lowered their surcharges to the point that they now have the lowest fees of the bunch.

American Express is still the highest.

Some of the additional criteria used in determining what fee the cards will charge you for their service also includes whether the card is a personal, or business account, if it is a check card, and also the size and number of transactions you post monthly. Tim