Credit Cards

[Marie]

Does anyone charge an additional fee to a customer who is paying by credit card? If you do charge a processing fee, have you had customers question it? It is definitely the trend at a lot of other businesses in our area, but we haven't gone that route yet. Credit card processing does add up each month!

 

[WhiskeyDreamer]

I'd rather bump my prices 3% than say I'm charging a processing fee.

 

[FireSprint.com]

We are seeing it more and more as well. We don't charge an additional processing fee at FireSprint.com

I think if you are used to accepting checks, and if you give your customers terms, a fee for taking a credit card is reasonable. If your customers pretty much all pay you with a CC though (Say you sell mostly through you website) a processing fee is probably a bad idea. As WhiskeyDreamer said, just raise all your prices 3%

 

[WildWestDesigns]

Some jurisdictions don't allow for that to be passed on, so I would make sure that you are able to do so.

Although I have seen some get creative working around that little troublesome aspect.

 

[Solventinkjet]

It's a cost of doing business that is reflected in our prices already. If you want to pay for a $30k printer with a card though, we have to charge a fee if we don't want to lose our hat.

 

[Gino]

As of a few years ago, it was highly illegal to charge extra for credit cards around here While it is now..... no longer illegal here in PA, what we've done is to go with a company who charges the card holder with the fees. We tell the person up front, they will see the charges on their statement(s). However, if they wish to avoid those charges, they may still use a check or even cash. It's not too bad when it's only a few hundred dollars, but when you get these invoices for thousands of dollars, it adds up. Now most people just bring a check with them or send a check.

I kid you not, a guy just left here, not 15 minutes ago and gave me $845 in twenties to save about $38. He didn't have his checkbook with him....... but he had a lotta cash on him. He's a repeat customer, so I think he knew ahead of time.

Oh yeah...... and this system can actually make you some extra money and it pays for itself, in the longrun. After a few transactions, you start to collect money and each month they send you a check. My bill is NEVER more than 10 bucks a month. The customers are paying for it entirely, unless I don't have any card sales.

 

[DPD]

I had one customer balk and another gladly pay the processing fee. The balker paid by check. Your other choice is to price higher on the sign and if you do this remember the customer only sees that you have a higher price for your sign. For me, I try to offer the best price I can to a customer. If you are doing this and then paying the processing fee yourself then you are offering a discount on top of your best price. Does that make sense?

Try this with some of the national manufacturers and they'll tell you that once they offer you a price they will not accept credit cards unless you pay a processing fee.

 

[2B]

We were forced to implement a processing fee for CreditCards (when it became legal),
all of these "Reward Cards" (milage, cash-back, points, etc...) are typically paid for by the charging party

ALL estimates and invoices state
Payments made with a Debit and/or Credit Card(s) are subject to a convenience fee not to exceed 4% of the Total Amount Due.
Prices listed are valid for payment(s) with a "Check" and/or "Cash"

This only works for in-person transactions, the E-commerce side has the fees already added into the product cost since they can only pay with a CC at check out

 

[ChaseO]

We charge 3.5% for anything over $100. Check or cash is fine, I give cash discounts, so if someone learns they can save even more money with cash, sometimes they do that. I have had some balk, but why should I eat the fee? I try to warn customers long before they get their invoice of a fee so they can plan ahead. A lot of my good customers can take the bill with them and mail me a check instead of paying with a card.

 

[Notarealsignguy]

I tell most everyone that we don't take cards but we will. A larger amount not a big deal on rare occasions. It really irritates me when some Joe blow wants to use his card to pay 20 bucks for some piddly crap, I'm not 7-11. That's just beer money, which is why I said 20 bucks in the first place. Then you have to go invoice it in QuickBooks or whatever too.

 

[unclebun]

There are 11 states which have outlawed "convenience fees" or surcharges for using credit cards. Everywhere else it's legal. In Missouri, even our state is ripping us off on taxes by requiring us to file and pay online "due to COVID", and the only way to pay online is by credit card. And they charge a "convenience fee" for using a credit card.

In most states that don't allow it, what you can do is the opposite--offer a discount for paying by cash/check. Then up all your prices by 4% and keep them up.

When we found customers quit wanting to write checks and use cards instead we increased our prices overall.

 

[Texas_Signmaker]

I don't charge any extra.

 

[Stacey K]

If they ask me, I tell them I prefer a check/cash but can take card if I have to. For big orders I sometimes tell them upfront that I prefer cash or check and is that a problem. Most people are really good about it if they are in business, they understand and tell me how they hate customers paying with card also LOL

 

[gabagoo]

I was always pretty sure when you signed up with processing companies that part of the contract was that you do not charge a fee to use credit cards. Maybe it has changed, but sometimes I am relived when someone uses a credit card as I know I won't be chasing money later on which if you think about it, eats up time and money, and possibly ends up costing you more.

 

[FireSprint.com]

I am relived when someone uses a credit card as I know I won't be chasing money later on which if you think about it, eats up time and money, and possibly ends up costing you more.

There is certainly a cost in collecting payment. Going to the bank, dealing with returned checks, chasing down checks, mailing invoices. In the end, in some cases, it might actually be a little cheaper just to take the card.

As we grow in size, and we hire people to do things that I used to do "When I had a second" you start to realize there is a real cost in the administrative tasks a business needs to perform.

Purchasing, for example. I used to handle most of it, but with all the supply chain issues, vendor errors (I'm looking at you Canon and Midwest Sign/Grimco) and just the huge amount of inventory we need to keep on our floor, it has become nearly a full time job for us. It's not a cost you really account for, until your business has to really start paying someone to do just that.

Because we pretty much only accept credit cards, accounts receivable is mostly just a function of bookkeeping, and not something we need a specialist for.

 

[T Nichols]

We went with square a few years ago and couldn't be happier. The base is a little higher, but all cards are the same and still works out well below what normal processing companies charge.
Before changing, I use to love hearing people complain that Amex charges more and won't accept it. In reality, it almost always works out less. You pay the base and transaction fee and that's it. With Visa, you pay the base, transaction fee, plus tier. It's been a few years, but the top tier was almost 14% (never saw one that high, but was always a possibility). As mentioned above, you are paying for the, "miles, cash back, etc.". Add up your visa bill and compare to sales. It typically works out to an average of 6-12%, no matter what they claim. Also, many processors are now charging a fee (mine was $99/year before I switched), to accept debit cards. I do not work for square! We just did a lot of research before we switched.

 

[Billct2]

No. I will give a discount for cash, but not extra for a card. It's a part of the cost of doing business. I hate places that do, even more when its one of those that gets charged to your account. I do understand limits though, like equipment purchases.

 

[DARRELL OAKS]

We have been charging 3% for about 5 years now on all credit card transactions. It is stated on our estimates and on our front counter. Some people are OK with it some not so much, but the one that complain are normally small transactions.

 

[John Miller]

I have one client that reminds me to add the % because he uses a card. Very rare. I don't add for card use but if someone wants to give me a multi thousand dollar deposit to start a job I ask them to mail a check. One plus I've seen with card sales is people are more apt to add enhancements if they can just charge it.

 

[FireSprint.com]

No. I will give a discount for cash, but not extra for a card. It's a part of the cost of doing business.

This is another way to do it for sure, and while it achieves the same thing it feels a little less harsh on a customer.

It's pretty much all credit card today, but for our first 5 years in wholesale, we offered a 1.5% discount if pre-paying with a check.