PDA

View Full Version : What are you paying for Credit Card Processing??


DVS Hardscaper
03-01-2010, 08:28 PM
I just finished agreeing to some new rates for processing our credit card transactions.

What a scarey industry! Scarey in the sense that so many have no idea what fees and rates are involved with credit card processing. Hand Key vs Swipe. Non-Qualified card vs Qualified Card. Per transaction. Per Item.

We just got our rates cut in half.

How bout you pros, what are your current rates and fees?









,

dubb
03-02-2010, 12:11 AM
i do all credit card processing through paypal. its a 2% fee to run the card

esnipe8
03-02-2010, 09:31 PM
I cant remember exactly what ours is. We got it through Costco. The lease for the wireless machine is 19 or so a month, I think. Fees are around 1.6 percent, I think...
not much help am I!

DUSTYCEDAR
03-02-2010, 09:43 PM
Pnc bank stuck it so far up there i still cant walk

DVS Hardscaper
03-02-2010, 10:55 PM
Pnc bank stuck it so far up there i still cant walk

I got my low rate, thanks to PNC.

This past fall PNC quoted me a very very very low, fixed rate, didn't matter if it was a qualified card or a non-qualified card. One fixed rate.

Well, I got busy with focusing on sales and family life and kinda put the card processing off to the wayside. So I called PNC a few weeks ago and they jacked the rates up. No more fixed rate for both cards, they gave one rate for qualified, and another for non-qualified.

So I showed the current processor PNC's original quote, and they didnt match it, they didn't beat it, but they did come very very close to it. So I renewed with them.

Folks, the rates are negotiable. We do not pay any monthly service fees, either, whereas in the past we did.



,

mrusk
03-02-2010, 11:08 PM
Andrew I made an executive decision to not accept credit cards. I have lost zero sales because of this. But I don't blame you for taking credit cards. Considering most of your clients work for the federal goverment its pretty normal for them to buy stuff stuff on credit and run up debt.

DUSTYCEDAR
03-02-2010, 11:08 PM
IT WAS all the extra fees that pissed me off
glad it worked out for u

tthomass
03-03-2010, 09:38 AM
On my to do list for today. I use CC's for the lawn mowing, not construction. I need something stupid convenient to use, I don't have time to end 100 different numbers all the time. See what my bank (BBT) has to offer.

DVS Hardscaper
03-03-2010, 09:57 AM
On my to do list for today. I use CC's for the lawn mowing, not construction. I need something stupid convenient to use, I don't have time to end 100 different numbers all the time. See what my bank (BBT) has to offer.


There is software that will store the numbers so you dont have to enter them. Also, you can process credit cards through QuickBooks, which you will not have to enter numbers each time.


,

DVS Hardscaper
03-03-2010, 10:00 AM
Andrew I made an executive decision to not accept credit cards. I have lost zero sales because of this. But I don't blame you for taking credit cards. Considering most of your clients work for the federal goverment its pretty normal for them to buy stuff stuff on credit and run up debt.


MRUSK -

To whom are you speaking?

I scrolled through this topic and I don't see anything (user names or signatures) with "Andrew"?




,

PatriotLandscape
03-03-2010, 12:26 PM
1.5 to 1.65 percent more for Amex but I tell people I dont take that card. It has helped move things along on a job. no more waiting for people to move money into accounts and I figured 50% of my customers would use it and its already in my overhead recovery.

My business advisor always says that even if you had to lose the 2% it is better to have the money now then possibly have them move to a different project while your not at the kitchen table

DVS Hardscaper
03-03-2010, 01:31 PM
1.5 to 1.65 percent more for Amex but I tell people I dont take that card. It has helped move things along on a job. no more waiting for people to move money into accounts and I figured 50% of my customers would use it and its already in my overhead recovery.

My business advisor always says that even if you had to lose the 2% it is better to have the money now then possibly have them move to a different project while your not at the kitchen table




Last spring, I even got Amex DOWN! I got them to lower their percentage rate...and I got them to completely do away with any monthy surcharges (Amex charges a fee if you do not have any transactions).


Please note - this topic isn't for DVS Hardscaper to boast or self promote. This thread is to bring this facit of doing business to life. Giving folks that are thinking of accepting plastic the opportunity to ask questions, etc. Or for folks that are currently credit card merchants to call their processors up and beat them up on their rates.








And......in a matter of days, the diva of pavers will some how make this award winning topic will magically appear at the "premier hardscape" club........



,

tthomass
03-03-2010, 04:56 PM
2.17% credit
2.07% debit

BB&T

BCofDayton
03-03-2010, 05:08 PM
I use a company that offers free equipment (wireless or land based) and they have beat everyone's rates I've ever referred to them. Site is http://merchantpaymentservices.com or you can email tgriffith@merchantpaymentservices.com you should at least include these guys when getting quotes

Hokie84
03-03-2010, 06:56 PM
I do not yet accept credit cards for payment. I am unaware of any lost work due to this decision, but I have no way to be certain.

Do those of you accepting credit cards feel it has helped you increase sales?

BCofDayton
03-03-2010, 07:46 PM
I do it for the customers. Residential pay all of their bills this way now, both residential and commercial like the points on their cards. I don't think you lose business but it adds to your image and gives people options.

DVS Hardscaper
03-03-2010, 08:06 PM
2.17% credit
2.07% debit

BB&T

Ok TTHOMAS,

But what is the rate for the non-qualified cards? This is where they get you. Or is that rate for both, qualified and nonqualified?

Rewards Cards & Business Cards = non-qualified

I'd venture to guess that a majority of the transactions we process are non-qualified.

,

Summit L & D
03-03-2010, 08:21 PM
I have yet to have a client use a credit card with us. $10 per month in service fees for the past 2 years is a real pit.... I think we are paying right at 2% flat per transaction.

One thing that I've found in our area (South Texas) is that people here always pay out of cash they have on hand. I've offered the credit card option to several clients that I thought would use it - nothing.

DVS Hardscaper
03-03-2010, 08:25 PM
I do not yet accept credit cards for payment. I am unaware of any lost work due to this decision, but I have no way to be certain.

Do those of you accepting credit cards feel it has helped you increase sales?


We're communicating via text, I could talk verbally for about 10 minutes sharing experiences. But since this forum has no voice feature, I'll share a few experiences.

1. About 3 years ago there was a lady that paid a contractor a deposit to build her a patio. The day after she signed the contract and gave him a deposit......he filed for bankruptcy and went out of business. She was out her deposit. An unmarried, retired school teacher.

She called me and wanted us to build her patio. Naturally she was VERY apprehensive about giving us a deposit, as she just lost thousands. This lady even had friends of her's come to the meeting with me to witness the meeting as well as make sure I am trustworthy. There was no way she was going to give me a deposit.

So I said to her "ok, we accept credit cards, hoe bout you put the deposit on a credit card. this way if we do not show up, the credit card company will credit your charge back to you and they'll come after us". (see I know this because we have a client that's an attorney for a large credit card company). She she looked at her friends and they shook their head yes, and Visa began our relationship.


2. We installed a patio for the U.S. Navy at a navy base in the DC area. At the time we did the work - the Navy paid their bills via MasterCard.


3. We have a client that has a home based business, he designs ships for the U.S. Government. If he can't pay for services with his Amex - you can forget doing business with him. How many people will turn down income from someone that's designing battleships???


4. About 6 years ago I had a snow removal client that owed over $7000.00 in June for snow work that was done in January. I called him and he said they could not pay as because they didn't have the funds. I said "do you have any credit cards you could use?" He replied "do you take American Express?" I replied "yep". So we agreed to break the balance into 2 payments, 30 days apart. I got my money. Problem solved.


5. Not all the work we do is *dream work*. Meaning sometimes we do jobs that MUST BE done. Such as drainage, or repairing work done by others. When such scenerios arise - some folks dont have the cash available, thus they must pay us with credit card.


6. I had heard on the news about a year ago that within 3-5 years paper checks will be a thing of the past. Debit cards are taking over.


7. You won't know if you are missing out on work. People look for credit card logos. If you advertising has the logos - they'll call you. If they're determined to pay with plastic and you don't have a logo in you ad - they'll move on to the next ad that does. This I know for a fact. because I have been told multiple times, we called you because you accept credit cards.


8. They are great for when you do a job while people are out of town. They're gone, but you can still get your draws.


9. Had some people that were forced by the county to replace a retaining wall. They had no choice, as the county had taken them to court! Thanks to Mastercard - they got their wall replaced.


10. I could share more stories, but the MD / Duke game is coming on in an hour and a half :weightlifter:







,

tthomass
03-04-2010, 12:21 AM
Go Duke!!!

kootoomootoo
03-04-2010, 01:19 AM
Credit cards pay for pop up drainage thingys?

PatriotLandscape
03-04-2010, 12:56 PM
1. About 3 years ago there was a lady that paid a contractor a deposit to build her a patio. The day after she signed the contract and gave him a deposit......he filed for bankruptcy and went out of business. She was out her deposit. An unmarried, retired school teacher.

She called me and wanted us to build her patio. Naturally she was VERY apprehensive about giving us a deposit, as she just lost thousands. This lady even had friends of her's come to the meeting with me to witness the meeting as well as make sure I am trustworthy. There was no way she was going to give me a deposit.

So I said to her "ok, we accept credit cards, hoe bout you put the deposit on a credit card. this way if we do not show up, the credit card company will credit your charge back to you and they'll come after us". (see I know this because we have a client that's an attorney for a large credit card company). She she looked at her friends and they shook their head yes, and Visa began our relationship.



I know I have won bids over other contractors using this tactic alone. Most of our business is from homeowner referal and home shows. For some people it is hard to write a 20k check to someone they really don't know but they don't mind charging it.

I also will push it asking them if they collect points on the cards. Anything to close the sale faster so I can make the money on the job and these days even if you gave them 2% on the job to take the card its worth it.

BCofDayton
03-05-2010, 11:59 AM
We're communicating via text, I could talk verbally for about 10 minutes sharing experiences. But since this forum has no voice feature, I'll share a few experiences.

1. About 3 years ago there was a lady that paid a contractor a deposit to build her a patio. The day after she signed the contract and gave him a deposit......he filed for bankruptcy and went out of business. She was out her deposit. An unmarried, retired school teacher.

She called me and wanted us to build her patio. Naturally she was VERY apprehensive about giving us a deposit, as she just lost thousands. This lady even had friends of her's come to the meeting with me to witness the meeting as well as make sure I am trustworthy. There was no way she was going to give me a deposit.

So I said to her "ok, we accept credit cards, hoe bout you put the deposit on a credit card. this way if we do not show up, the credit card company will credit your charge back to you and they'll come after us". (see I know this because we have a client that's an attorney for a large credit card company). She she looked at her friends and they shook their head yes, and Visa began our relationship.


2. We installed a patio for the U.S. Navy at a navy base in the DC area. At the time we did the work - the Navy paid their bills via MasterCard.


3. We have a client that has a home based business, he designs ships for the U.S. Government. If he can't pay for services with his Amex - you can forget doing business with him. How many people will turn down income from someone that's designing battleships???


4. About 6 years ago I had a snow removal client that owed over $7000.00 in June for snow work that was done in January. I called him and he said they could not pay as because they didn't have the funds. I said "do you have any credit cards you could use?" He replied "do you take American Express?" I replied "yep". So we agreed to break the balance into 2 payments, 30 days apart. I got my money. Problem solved.


5. Not all the work we do is *dream work*. Meaning sometimes we do jobs that MUST BE done. Such as drainage, or repairing work done by others. When such scenerios arise - some folks dont have the cash available, thus they must pay us with credit card.


6. I had heard on the news about a year ago that within 3-5 years paper checks will be a thing of the past. Debit cards are taking over.


7. You won't know if you are missing out on work. People look for credit card logos. If you advertising has the logos - they'll call you. If they're determined to pay with plastic and you don't have a logo in you ad - they'll move on to the next ad that does. This I know for a fact. because I have been told multiple times, we called you because you accept credit cards.


8. They are great for when you do a job while people are out of town. They're gone, but you can still get your draws.


9. Had some people that were forced by the county to replace a retaining wall. They had no choice, as the county had taken them to court! Thanks to Mastercard - they got their wall replaced.


10. I could share more stories, but the MD / Duke game is coming on in an hour and a half :weightlifter:







,

Excellent points!

JCPM
03-11-2010, 09:35 PM
I pay about 3%
Posted via Mobile Device

DVS Hardscaper
03-11-2010, 10:50 PM
I pay about 3%
Posted via Mobile Device

3% is good if it's a non-qualified card (rewards card, corporate card).

A qualified card should be no more than 2%.

JCPM
03-11-2010, 11:03 PM
3% seems like the going rate around here. I have separate merchant services for my carwash and its 3% also.
Posted via Mobile Device

tthomass
03-12-2010, 06:45 PM
Visa/MasterCard/Discover Credit Rate: 2.30% Per Item Fee: $0.20
Visa/MasterCard/Discover Checkcard Rate: 2.12% Per Item Fee: $0.20

Is what I was emailed, BBT. I have to call and see whats different, perhaps volume.

JCPM
03-12-2010, 10:23 PM
3% is the whole percentage that I find I pay after all processing, monthly fees and higher card rate fees combined.
Posted via Mobile Device

DVS Hardscaper
03-13-2010, 12:21 AM
Visa/MasterCard/Discover Credit Rate: 2.30% Per Item Fee: $0.20
Visa/MasterCard/Discover Checkcard Rate: 2.12% Per Item Fee: $0.20

Is what I was emailed, BBT. I have to call and see whats different, perhaps volume.




I'd be willing to be that the 2.3% for credit cards does not factor in the rate for "non-qualified" transactions. In which case that 2.3% is high in my opinion. I think thats about what my old rate was until I got them to come down.

I just looked at my statement the other day - I get a $100 credit for referals. So it's manditory that you call my processor and get some rates.......




,

mike174
03-13-2010, 02:06 AM
2.17% credit
2.07% debit

BB&T

Debit should be no more than $0.75 per transaction. Not 2.07% of the ticket. You probably need a key pad to get the lower rate. 2.17% is in the ball park for Visa & Mastercard. I pay 1.69% + $0.19 (rewards cards are higher). AMEX is 2.89%. I use Sovereign Bank Merchant Services. email me @ mike174@optonline.net if you want my reps number.