PDA

View Full Version : Credit Card Processing


Chris J
08-08-2008, 03:40 PM
I just got the prices from Costco for credit card processing, and I'm wondering if this is the way to go.
The cheepest way is with a "slider" to use on-site, then enter the info back at the office on-line.
$179 set up fee
$8 per month service fee
$20/mo minumum (if fees don't add up to at least $20, then there's a $20 fee)
1.99% charge for each transaction plus 0.27 cents per transaction.
For a wireless device, the cost is over $800 for the equipment, plus a $19 monthly wireless fee.
So, if I didn't use the CC processing in any given month the fee would be $28.
For those of you who accept cc's, does this sound like a fair deal, or could I get a better deal elsewhere?

NightScenes
08-08-2008, 03:58 PM
Chris, we use the Quickbooks software and process everything at the office. There is a monthly fee but I'm not sure right now what it is. I don't think we had to pay a set up fee and we even got a 90 day free trial. It's probably the easiest way to go when it comes to credit cards. It's hard to remember that you have to raise your prices on everything though to cover the cost of processing. You can't charge someone extra to accept their cc so you have to charge everyone just in case.

Lite4
08-08-2008, 05:02 PM
That is a pretty good transaction rate at 1.99%. I am using the knuckle dragger device and have to run the card at the office, I get charged 2.85% per transaction + the 20 bucks per month. I would jump on that one.

Chris J
08-08-2008, 05:07 PM
Paul, do you just write the information down while at the client's home and enter it when you get back?

NightScenes
08-08-2008, 05:11 PM
Yep, or they'll call it into us. So far we have done very little in cc business but I expect it to really climb as we get closer to the holidays.

Chris J
08-08-2008, 06:24 PM
Yeah, I'm not expecting to use it much and that's why I didn't opt for the more expensive wireless option. Most of our clients want to use cash, and the ones that do use the card are doing it for the miles or rewards. However, as in the case the night before last, some people want it but they also want financing options. Had I accepted cc's at the time, I would have probably sealed the deal right then. Made me go to work looking for this option. Once I get the processor, I plan on promoting the sale of lamps to those who don't do the service agreement. I think this would be another excellent source of income.

punt66
08-08-2008, 06:34 PM
You guys find the need to have that extra expense? I have not once had a customer ask if i take credit cards.

Chris J
08-08-2008, 06:56 PM
That's the way I felt for the past 8 years. Lately though, I've seen an increase in the request. I look at it this way; if I don't use it all year it's only going to cost me $240. I'd much rather spend that 240 and have the ability to close a 5 or 10k deal on the spot. To put it another way, would you give a $240 discount to someone with a 10k job for you? I would, so it's money well spent. Plus, like I said, I'm going to promote the sale of lighting products via mail to my past customers. That revenue alone should cover the cost of having the processing abilities. Maybe you should consider the possibilities? "Hey Mr. Customer, would you like to renew your maintenance contract for the whole year, the next two or three years? We take Visa, AmEX, Discover and MC. I'll give you a 5% discount if you do." Wow, how's that for cash flow?

S&MLL
08-08-2008, 07:11 PM
Chris J I think you can get a better deal. I will ask my guy if he can do out of state stuff. If so I will give you his number. Just be careful using the imprinter. Technically that's still considered Manuel entry. Manuel entry is a secondary rate. So say your primary is 1.99 on visa MasterCard your secondary rate would be more like 3.5 or so. Also a lot of clients who use it for miles and such have amex. Amex is a flat rate that can not be changed by any processing company. That rate primary is around 3.2. Their secondary is outrageous like 7 percent or so. So say its a 20k dollar job and they use amex. On the imprinter you take home 19360. Now if you had the wireless rig you would take home 18600. Also If you go with a private company they will most of the time give you machines for free. Just tell them what you expect your average sales a month will be. If you do atleast 15000 or so a month im sure they would give you the wireless rig.


Now the other option would be quickbooks credit card processing system on laptop with optional card reader. But then you would have to rely on your clients wifi connection.

Chris J
08-08-2008, 07:14 PM
To take that one step further, you could invest that revenue in good growth mutual funds (right now is the time to be buying, it's on sale!) and gain 10-15% on your money. You give the 5% discount which might only be $100-200 bucks, but you gain 10-15% on the total sales price! It's just good money management.

S&MLL
08-08-2008, 07:35 PM
Hey glad I took time to post that all for you

Chris J
08-08-2008, 07:42 PM
Chris J I think you can get a better deal. I will ask my guy if he can do out of state stuff. If so I will give you his number. Just be careful using the imprinter. Technically that's still considered Manuel entry. Manuel entry is a secondary rate. So say your primary is 1.99 on visa MasterCard your secondary rate would be more like 3.5 or so. Also a lot of clients who use it for miles and such have amex. Amex is a flat rate that can not be changed by any processing company. That rate primary is around 3.2. Their secondary is outrageous like 7 percent or so. So say its a 20k dollar job and they use amex. On the imprinter you take home 19360. Now if you had the wireless rig you would take home 18600. Also If you go with a private company they will most of the time give you machines for free. Just tell them what you expect your average sales a month will be. If you do atleast 15000 or so a month im sure they would give you the wireless rig.


Now the other option would be quickbooks credit card processing system on laptop with optional card reader. But then you would have to rely on your clients wifi connection.

Wow, I didn't know that. Thank you for the input. If you could get that info for me I would certainly appreciate it. I owe you one!

Chris J
08-08-2008, 07:44 PM
Hey glad I took time to post that all for you

Huh? I'm glad as well! Thank you again!

S&MLL
08-08-2008, 07:48 PM
To take that one step further, you could invest that revenue in good growth mutual funds (right now is the time to be buying, it's on sale!) and gain 10-15% on your money. You give the 5% discount which might only be $100-200 bucks, but you gain 10-15% on the total sales price! It's just good money management.



Sorry thought that was sarcasm.

Chris J
08-08-2008, 07:53 PM
Sorry thought that was sarcasm.

Man, you are hard to read tonight. Wanna sell some of that stuff your smokin? Anyway, thanks again. No joke!

S&MLL
08-08-2008, 08:23 PM
Haha its friday night

Chris J
08-08-2008, 08:39 PM
You got that right! Cheers to you my friend! :drinkup: It's a weekend well deserved after working in this heat!

NightScenes
08-09-2008, 10:01 AM
7% on Amex?? My secondary on them is only around 3.5% Which is about .5% more than MC or Visa. I do manual for all of my cc transactions because they just want too much money for those wireless things. I may want to use those for the holiday lighting season though because I'll be out in the field alot and can just take care of it there and give them a receipt. It may save me some serious change by the end of the season.

S&MLL
08-09-2008, 03:04 PM
I will have to double check my rates has been a while since I signed up. 3.5 seems really good for amex secondary. Nightscenes do you see a lot of amex out your way too.

NightScenes
08-09-2008, 03:12 PM
No, not really but then again, I don't get very many credit cards. I expect to get several during the holiday lighting season.

Lite4
08-09-2008, 09:00 PM
Half of my sales this year have paid by credit card. I do not voluntarily tell them that I take them. I wait for them to ask. Most of my customers want the miles.

punt66
08-09-2008, 10:37 PM
I have never been asked. Markets can be very different across the country. Its interesting.

Mark B
08-09-2008, 10:42 PM
I'm with punt66 on this one. I have never been asked yet. But i'm in a smaller market.

INTEGRA Bespoke Lighting
08-10-2008, 01:20 PM
I added Visa and MC to my payment options this year. It has been a resounding sucess with about 80% of my service work paying by CCard and about 50% of my installations using it. The time saved in chasing down ARs is more then worth the fees I am paying.

I signed up with ChasePaymentech through an affiliation program with Landscape Ontario. The rates were excellent.

I have created an authorization form that has many of my service clients (whom I have a long standing relationship with) registering their card numbers with me and allowing me to charge them for any services performed, I then follow up with a copy of the paid invoice emailed to them.

A huge improvement in cash flow this year.

JoeyD
08-11-2008, 12:51 PM
For whats it's worth, I know John Deere offers a financing program for homeowners and contractors..........

niteliters
08-14-2008, 11:06 PM
Chris, we have been using the verifone 8000 for couple of years. Don't use it much but it's impressive when you not only answer "yes, I can take a c.c.", but slide it right there in front of them and have them sign your copy and give them a receipt. I think it's in the 1. something range when you slide there card and slightly hire if you have to punch it in. seems to be helpful to certain clients so we're glad to be able to offer it. As you said, well worth the small anual investment

NightLightingFX
08-19-2008, 01:16 PM
Incorporating the use of a credit card can dramatically improve your sales presentation. Here is my rational. Eventhough I come from a sales background I have to admit that some of my outdoor lighting sales presentations have not been very good. It is because I am doing everything else and I neglect putting togather a strong sales presentation. When ever I rush through a sales presention and I get the job, me and my client aren't always on the same page and that can create conflict in the future. By creating a sales presentation that addresses all the potential missunderstandings that can come up you can be a lot more effective. A good example is when payment is due and the customer says "Can I use my Visa?" and I have already given them a great deal. The last thing I want is to use a Visa that is going to take more money out of my pocket. By incorporate the Visa payment in your sales presentation. It forces you to sit down with the customer and slowly go through your services. The Visa card is a great closing tool - Pass the Visa cost on to your customer and be prepared to drop the cost. "We take Visa or Mastercard and the total for the system is $6,305." If they are fine with the cost you are golden. If not it gives you and opportunty to figure out what their expectations are and you can drop the price. "If you pay by check or cash I can give you a $300+ dollar discount for $5,995." By using the Visa card close it opens the door for negotiation and it prevents the at the last minute "Can I use my Visa Card?" I am forcing myself to have much more thought out sales presentations. I am always going to use the Visa close - even when I know I have the job. I use just the simple knuckle buster visa card process but they charge me 3.8% for a transaction. In a $6,300 job that is $240 out of my pocket. That can add up. Plus I love the Visa Card Close - it is a great opportunity to open up negotiations and handle objections.:cool2:
~Ned