Credit Card Payments

[Mojo]

I hate banks and credit card companies. I was going over our accounts and these damn transaction fees are a killer. I would love to do cash or check orders but it would bankrupt us because no one would do business with us. It is pretty crazy how we have went from a check/cash society to a debit / credit card company.

3 % fees are a killer. I have looked for ways to cut the fee's and have found some companies that are cheaper but they get you in other fee's. They advertise small transaction fees but then tack on other fees. We use Square exclusively and their services are top notch. Our parts company uses their inventory management system and it is integrated with our website store. Works slicker then snot on a door knob.

But those damn fees. :( Do all of you accept CC transactions and who do you use ?

Mojo

[MinUph]

  I use square also, 2.75% money next day. The normal merchant accounts are a nightmare. I had one once and the "other" fees are faminonal. Statement fees, transactions fees, access fees, and more. All add up to a bookkeeping nightmare. Square is so simple it is worth the fees. I has a comparison done a couple years ago and the guy was from a processing company. He said until I get to 5k a month then the fees were going to be cheaper using square. I am past that and I still won't switch. I hated all the other charges they had.
  Your fees might be different being online. That is like non swipe (keyed in) I believe.
  It has become a cc world. People like the miles it pays for their vacation travel for some of them.

[SteveA]

Not the only reason to hate banks - how about 0.01 percent interest - fees for checking - fees for low balance - or over drawn account - lack of enough tellers -  on line software that keeps telling me I need to enter the correct password to see my accounts on line - as if I don't know my password - steering you toward ATMs which I don't care to use - customer service who are always over taxed with customers when you walk in - constant emails telling me how wonderful they are and how do I like all their great services - and an email at the end of the billing cycle telling me my statement for the month has not been received when I mailed it 2 weeks earlier
SA

[sofadoc]

All of my CC sales are in-store swipes with the person and card present. And since I'm willing to wait an extra day or 2 for funding, my total fee from Square is 1.75%.

Like Paul, I was getting positively raped from some of those other processing companies.

[MinUph]

Sofa,
  I'd like to know how you get 1.75% from square. All my sales are at the shop or with a card reader. Let me know how you get this. The only way I see to get a lower rate is doing 25000.00 + per month. Maybe your busier than I thought :) I wouldn't mind waiting an extra day.

[sofadoc]

Sorry, typo. I meant 2.75%.

Same day funding, or card not present is an extra 1%.

[Mojo]

I have found Square to be a very powerful program/service. You can do payroll, run sales reports, dissect sales by day, time of day, by item, etc.
It works awesome for us because I take it on the road with me when I do events and run sales out of our booth. Last year we invested in a square station with register, printer and an Ipad.

I built our inventory list on square and it now helps us with inventory control. I am happy with it but hate paying fee's for anything. Hell I hate paying taxes too. :)

Mojo

[Eric]

I use square, but the customer is told upfront, that the job will cost a additional 3% to cover fee. They all agree to it.

[MinUph]

I use square, but the customer is told upfront, that the job will cost a additional 3% to cover fee. They all agree to it.

I know many people do his. But I don't. Our Dentist does both my wife and I feel it is tacky. I know some will say you have to recover the money spent but if I felt it made that much difference I wouldn't accept cards in the first place. No offence intended to those that charge the fee back to the customer. I just don't see it that way.

[gene]

I don't take credit cards so I'm not in this part of the discussion.

Regarding charging 3% to use a credit card, the other side of that is what if someone offers to pay cash and asks for a disocunt, then do you give a cash discount? I don't because I'm doing the same amount of work and my work has a cost/value to it that I do not want to discount. And for me, and I know like Paul's thoughts on charging for using a credit card this may not be the same for everyone, but when someone asks for a cash discount I feel like they are assuming I will not pay tax on the cash payment and therefore they are wanting some of that money not being paid in tax.

gene

[sofadoc]

My understanding of the law is that a business can legally charge a "convenience fee" for using a credit card if the customer is paying by mail, online, or over the phone.

BUT.....If the customer is present in the store and plunks down a credit card, then it is no longer classified as a convenience fee. It becomes a "surcharge" which is illegal in Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas.

This law applies to private businesses. Government entities are allowed to add a surcharge for using a credit card.

[sofadoc]

I know many people do his. But I don't. Our Dentist does both my wife and I feel it is tacky.

Yeah, but which is tackier? Telling people up front that there will be an extra fee for using a credit card, or just factoring that extra fee in to all of their prices? Which means that people who pay cash are paying extra for a service they're not using.

[MinUph]

I think it is tackier to hide the fee. As for the legality of the whole fee thing. I know years ago when I had online stores I had merchant account and it was against Visa / MC rules to charge a fee for card use. I think it has changed but am not privy to the rules or laws. I know it is OK to give a discount for cash or check so there are ways to get around this stuff.

[Mojo]

We keep very close tabs on our overhead and costs. Each product price is calculated with material costs, admin costs, manufacturing costs, shop overhead costs and yes CC costs.

Our shipping costs are calculated at the time of shipment and we charge the customer only for the price of shipping. We do not mark that price up. I ordered some new company T-shirts and hats the other day and I know the actual shipping costs are $ 15. But they charged me $ 25 so they are making money off the back end. I refuse to do this and only bill our customers for the actual cost.

Nothing pisses me off more then a company gouging you on shipping.

Mojo

[Eric]

In Wisconsin, as long as I tell them upfront, I can charge the fee. No go if I tell them $100 for job, then add the 3% Many of these clients use cards for points, mileage, etc. that is being feed by the 3% processing fee. I take credit cards because many say, lets go ahead, do you take credit, I didn't bring a check.