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Accepting CC's for 1 customer?

Discussion in 'Business Fundamentals' started by Bossman 92, Nov 14, 2012.

  1. Bossman 92

    Bossman 92 PlowSite.com Addict
    Messages: 1,771

    Alright here is the deal. We have maintained a quite large company for the last few years and payment was always on time (Net 75 days) which was never a problem untill this past spring. Well they changed everything around quite a bit (would take all day to explain) and now payment is anything but on time. Well I found out today that if we start accepting credit cards it would speed payments up to net 15 days.


    Any thoughts? I would not normally do this for 1 customer but I think it may be time we make a change.
     
  2. born2farm

    born2farm 2000 Club Member
    Messages: 2,310

    It sounds to me like it would be worth it to speed up the payment 60 days. Even if it costs you a small fee to process I still think it would be worth it
     
  3. Khowie644

    Khowie644 Member
    from Maine
    Messages: 93

    Accepting CC's was one of the greatest changes I've made to my company.
    My contracted accounts seek it mostly during the holidays when they have to buy gifts.
    And I love it with one timers that flag me down yet don't have cash to pay me.
     
  4. Khowie644

    Khowie644 Member
    from Maine
    Messages: 93

    Sorry read that as "1 time customers"
    average rate for CC's is like 2.5% or so on each transaction processed.
    so ask yourself if it's worth it to wait 60 more days or lose money to get it faster.
     
  5. 04ram1500

    04ram1500 Member
    Messages: 97

    I began accepting credit cards this season. I already had a PayPal account and decided to go with them for CC processing. If you have an I-phone or android, download the PayPal Here app, fill out the application and when approved you get an e-mail saying the reader has shipped.

    They will process for a flat 2.75% with no additional fees, and you don't pay unless you use it. Then you can just log into your PayPal account and transfer the money to your bank.

    I add a "convenience charge" of 2.75% to all my invoices that use a CC to cover the fee. most people pay it without question. After all on a 2,000 dollar bill it is only an additional $55. It works for me.
     
    Last edited: Nov 14, 2012
  6. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    This may not apply to you, but it is ILLEGAL in MA to charge more to a customer when they choose to use a CC for payment. I just add on an extra 3% off the bat and give it as a discount when paying with cash or check.
     
  7. 04ram1500

    04ram1500 Member
    Messages: 97

  8. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    Good read, but it changes nothing in the following states including MA. (taken directly from the article in your link)

    Dworsky also points out that 10 states currently have their own laws that prohibit credit card surcharges: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.
     
  9. 04ram1500

    04ram1500 Member
    Messages: 97

    I understand that, and read that. but to the OP who appears to be located in Ohio, and to myself in PA. The restrictions in these ten states have no bearing on our respective places of business, therefore it would be perfectly legal to charge an additional fee.

    However I do agree it would make it sound better to a customer to give a discount for cash payment. I might just do that next year.
     
  10. 01PStroke

    01PStroke Senior Member
    Messages: 505

    Intuit GoPayment, Square, and PayPal Here all work from android/iPhone and accept credit charges
     
  11. ducaticorse

    ducaticorse PlowSite.com Addict
    from we
    Messages: 1,426

    It was informative to me. I wasn't aware it was a contract with the merchant processor originally, I thought it was a state mandate. Well, in some cases it was both, but now it seems that it only applies to certain states with the law... I was just bringing it up because it would have been an issue in MA, and wasn't sure if it was a national issue or not.
     
  12. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    How would like if you went to the dealer and bought a new plow with a cc and they added 3-5%?
     
  13. BPS#1

    BPS#1 2000 Club Member
    Messages: 2,407





    You are kidding yourself worse than left wingers kid themselves that the country is
    on the right financial track if you think they don't have that priced in.

    Maybe not the entire % on every purchase but it is priced in.
     
  14. grandview

    grandview PlowSite Fanatic
    Messages: 14,609

    I know it is. But your seeing more and more signs by the cash register adding surcharge to the cc.
     
  15. 01PStroke

    01PStroke Senior Member
    Messages: 505

    I like it when I'm on the road and full up at some of these truck stops.. One price for cash, one price for credit.. OH! You're not tax exempt? You get a bigger surprise at the register.
     
  16. lilweeds

    lilweeds PlowSite.com Addict
    Messages: 1,178

    Square! Great for taking a few credit cards.
     
  17. Moonlighter

    Moonlighter Senior Member
    Messages: 643

    X2 on Square, free, small reader, plugs right into my iphone.
     
  18. BPS#1

    BPS#1 2000 Club Member
    Messages: 2,407




    Trucking is a whole nuther realm of how they do it.

    Some times you can talk the cashier into giving you the cash price if you pay via debit card and walk it into the counter.
    Don't swipe at the pump and expect to get the cash price then.


    The reason for this is there are several card providers out there that mainly work at truck stops and act as a debit card.
    The fees are much lower than when using a regular CC.
     
  19. WilliamOak

    WilliamOak PlowSite.com Addict
    Messages: 1,986

    I looked into it a while back to speed up monthly invoicing for landscaping and most CC companies wouldn't let you add a % to sales using a CC as it would deter them using that card. Might have changed by now though.
     
  20. Fourbycb

    Fourbycb Senior Member
    Messages: 578

    I do a 8 unit HOA and they collected checks from each home owner then paid me until this year . They suggested accepting CC payments and I looked into the Square Card reader program and now all my customers love the idea, Best move ever and now I get my money within a week of Invoicing