Credit card sales?

[binki]

That cc charge being illegal changed with the passing of the lastest legislation on cc's and the financial industry.

Aside from that you could always offer a cash price and credit card price.

Regardless, no one is coming after you on this unless you have so much business you don't need to post here.

 

[Farmboy]

Passing it off directly to the customer is illegal I believe and like I mentioned before, very hard to do for the individual customer.

However, hiking your prices for everyone, regardless if they use a CC or not isn't illegal. Just the way stores do things. If it happens to wash the 3% charge then I guess it just happens to wash the 3% charge.

I agree. It's all in the wording.

 

[ams]

I was at a convenience store a few years ago, and used a CC for a $3.00 purchase, and the guy said any sale under $5.00 they have to add an extra 15 cents to, I was like okay thats fine.

 

[ALLAMERICANSIGNS]

In my agreement, it is not permitted to upcharge - they did not say you could not discount for taking cash/checks. If you have a $100 job and charge $103- $104 whatever to cover your costs, the customer should not know that. If you are losing jobs over a couple of bucks, you do have to cover your costs. Otherwise you can justify it by getting your money right away vs waiting 30, 60 or 90 days if you wait for a check. Many companies that invoice give 1 or 2% for payment net 10. Its kind of the same with credit cards. Would not be without it. Also, when you are doing collections and need to get paid, you can always call the customer out to use their credit card. I've done that a few times to get paid, it works sometimes.

 

[Mosh]

8 out of 10. We offer 3% cash and carry discount.

 

[10sacer]

CC Fee

I don't think its illegal in North Carolina, at least.

Now what I am about to say should provide no bearing on the story or your impressions of us NC folk.

When we go to the local gun shows (great place to buy first aid kits and camping supplies BTW) - they always tell you there is a 3% charge for running a credit card.

SM

 

[mark in tx]

Offering a discount for cash payment is perfectly legal,
but,
your contract with a merchant services provider, or a credit card company may prohibit you from doing that. Read the fine print.

The only thing about credit cards I do not like are those rewards cards, that generally cost more to process, and take money out of the merchants pocket.

That wonderful 5% cash back card? You might be surprised to find out you pay that 5% back to the customer. Plus the associated fees for the transaction.

 

[dj_elite]

I just signed up for the Squareup program through a smartphone. I'll let you guys know in a couple weeks how it works when I receive the card reader

 

[CanuckSigns]

passing the merchant costs on to your customer is not illegal, however it is against the agreement you sign with visa/mastercard/amex and if your customers complain to their banks, the credit card companies can revoke your right to process their cards.

that being said, you can offer a cash discount if you wish. personally I eat the merchant fees because i prefer to be paid by credit card and paying a small fee (about 2.5%) rather than waiting 30 - 60 days to get paid.

 

[Brandon708]

Hey all, If you have a android or iphone (check website for your phone) you can accept cc payments from this free app https://squareup.com/. they even send you a card reader that plugs into your headphone jack for free. You get the money next business day. You get charged when you use it, 3.76% so if the charge is $100.00 pass the cost to customer $103.76...Nice when you are on the job and can take cc payments on the fly. This app was created by the gentleman that created twitter.

Terry

I saw this a few months back. Its pretty cool technology.

 

[Pat Whatley]

Our breakdown so far this year is:
SALES UNDER $100
-72% credit/debit card
-21% invoiced/company check
-6% personal check
-1% cash

SALES OVER $100
-56% credit/debit card
-41% invoiced/company check
-2.5% personal check
-.5% cash

 

[tcorn1965]

I don't claim to be a mathematician here, but if you try to charge a customer 103.76 your going to get charged 3.76% on the 103.76. So you will end up with $99.85. While you have reduced what you are paying out down to $0.15 for the transaction your still paying. While your math may seem simple in your mind it just doesn't work in reality.


Obviously I am not a mathematician either...But I think you get the gist of it.

Terry

 

[Locals Find!]

I don't claim to be a mathematician here, but if you try to charge a customer 103.76 your going to get charged 3.76% on the 103.76. So you will end up with $99.85. While you have reduced what you are paying out down to $0.15 for the transaction your still paying. While your math may seem simple in your mind it just doesn't work in reality.


Obviously I am not a mathematician either...But I think you get the gist of it.

Terry

Oh, I got what you were going for but, really if your that worried about a few dollars you are really in trouble and shouldn't be bothering with credit cards. I write it all off as cost of doing business and it lowers your tax liability if your accountant knows what they are doing.

 

[threeputt]

I don't think you can operate without taking CC's in this day and age.

Clients are more inclined to buy, and buy more when they know they can "charge it".

Most sign shop's margins can be adjusted to allow for this "cost of doing business" expense.

 

[signswi]

As a customer, any business that doesn't take CC's loses my sale and all credibility. I don't care what the fees are, figure it out in your overhead cost and charge accordingly or die with the rest of the dinosaurs. I can't believe we're still having this conversation in 2010.

 

[threeputt]

As a customer, any business that doesn't take CC's loses my sale and all credibility. I don't care what the fees are, figure it out in your overhead cost and charge accordingly or die with the rest of the dinosaurs. I can't believe we're still having this conversation in 2010.

+1

 

[ams]

Well it's really tough not having any start up money, no operating money.
I bought a used Roland GX500, and brand new GX24, plus all the tools, vinyl, supplies, used office tables and chairs, and all for $7,000. I am working within the last $200 left on my credit card before the limit.

So getting into credit card machines could bankrupt me if I am not careful. Some would be a $50 setup charge + $39 a month + 5% per transaction, and so on.

 

[dj_elite]

So get the credit card machine down the line, accept cash and check now. Go out and make signs and regain some of that negative equity!