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View Full Version : Credit Card Processing fee. Who pays?


lazor-cut
01-27-2013, 07:01 PM
I tried searching this question and couldn't find a straight answer.

I am interested in using an automatic draft system this year. But all of them have fees. Should I Eat the fee or should i pass the fee onto the customer as a "convenience fee"

I'm actually thinking about eating the fee as it will be nice to have my money all on the 1st. Easier than running around attempting to collect..

Let me know what you do or would do. Thanks!!!

Patriot Services
01-27-2013, 07:27 PM
Eat the fee. Just build it into your price. The days of cash price vs credit price are long gone.
Posted via Mobile Device

patrick6411
01-27-2013, 09:33 PM
Eat the fee. Just build it into your price. The days of cash price vs credit price are long gone.
Posted via Mobile Device

This is what I do.

zak406
01-28-2013, 12:27 AM
I will be introducing credit card payment this year myself. I say eat it... Why you ask? Simple the only people in my belief who will take advantage of it are people who can't afford it upfront. Without credit you will be unable to obtain the job... That's the generation though buy now pay later

Holland
01-28-2013, 12:36 AM
You pay the fee. Shop around though as you can get good deals using a card swiper on your laptop or phone or google checkout for online invoices.
Posted via Mobile Device

patrick6411
01-28-2013, 07:34 AM
Square is who we use. Can use it on the phone and if you need more then one person to use it you can add a second user.

wegomow
01-28-2013, 09:19 AM
Square's 2.75 % rate is pretty high compared to a card reader on your business desk. I guess that's the price you pay for the portability of the card reader with a smart phone though.

Patriot Services
01-28-2013, 10:21 AM
Square's 2.75 % rate is pretty high compared to a card reader on your business desk. I guess that's the price you pay for the portability of the card reader with a smart phone though.

I switched from square to paypals new reader. Keeps all my card transactions under one company. It all comes under cost of doing business.
Posted via Mobile Device

wegomow
01-28-2013, 10:27 AM
I switched from square to paypals new reader. Keeps all my card transactions under one company. It all comes under cost of doing business.
Posted via Mobile Device

I like to keep cost of business as low as I can. I pay 1.4% on debit cards and 1.65% on credit cards.

Patriot Services
01-28-2013, 10:34 AM
I like to keep cost of business as low as I can. I pay 1.4% on debit cards and 1.65% on credit cards.

But you lack the portability with a desktop swiper.
Posted via Mobile Device

wegomow
01-28-2013, 10:38 AM
I guess that's the price you pay for the portability of the card reader with a smart phone though.

macgyver_GA
01-28-2013, 11:11 AM
http://www.wsoctv.com/news/news/local/retailers-could-pass-credit-card-processing-fee-co/nT8BF/

Just heard about this on the radio here in Atlanta.

wegomow
01-28-2013, 11:15 AM
It's my understanding that if the retailer chooses to charge a fee to the client that it must be clearly posted at the card reader. Buyer beware.

Patriot Services
01-28-2013, 11:21 AM
Its also a deductible expense.
Posted via Mobile Device

lazor-cut
01-28-2013, 12:03 PM
I was actually looking into square also. Portability isn't really necessary for me as I would like a system that i could set me customers' Monthly fee and just hit one button, deduct the money from my customers' bank account/ card.

I would rarely ever ask them to physically swipe their card.. Thats almost as bad as collecting.

wbw
01-28-2013, 12:29 PM
I like to keep cost of business as low as I can. I pay 1.4% on debit cards and 1.65% on credit cards.

Is that rate for a non swiped card?
Posted via Mobile Device

burnsyscapes
01-28-2013, 03:03 PM
i have intuit go payment. can swipe from your laptop or phone, no monthly payment is 2.7% swiped or 3.7% entered, pay 20 buks a month and get it for 1.7% swiped or 2.7% entered. this to me was the cheapest around. and you don't need quickbooks to use it as well.

lazor-cut
01-28-2013, 06:36 PM
i have intuit go payment. can swipe from your laptop or phone, no monthly payment is 2.7% swiped or 3.7% entered, pay 20 buks a month and get it for 1.7% swiped or 2.7% entered. this to me was the cheapest around. and you don't need quickbooks to use it as well.

Then the account is just linked to one of your bank accounts? How long does it usually take to clear? I've always heard of Quickbooks but do you have to manually type in what you want to take out or can you set it to one monthly fee of say $150 and just do it that way?

burnsyscapes
01-28-2013, 06:45 PM
It usually takes a day or two. What do you mean by manually in? It just deposit it into your bank account

cpllawncare
01-28-2013, 07:48 PM
Manually means you type in the CC # instead of swiping the card, we use square also, just started it this season to see how it works out.

imow in NC
01-28-2013, 08:21 PM
Square's 2.75 % rate is pretty high compared to a card reader on your business desk. I guess that's the price you pay for the portability of the card reader with a smart phone though.

Gonna throw my 2 cents in here. I have been through several CC merchant and now the square for iPhone. Square, without a doubt beats everything else out there, hands down! carry in pocket, plug into phone. swipe and enter information 2.75% processing fee and money in my account in 24 hours. that's it. no monthly fees, no lease fees, no PCI compliance fees, no equipment to charge, no paper to load, nothing. if ever the acronym...KISS every came to existence, it is now.....

Patriot Services
01-28-2013, 08:31 PM
The new paypal swipe works exactly the same way for the same fees. Plus you get all the paypal benefits such as the funds being available on your paypal visa/mc card. Paypal keeps all customer info for recurring charges and allows you to design invoices. Plus Paypal has greater brand recognition. I used square for years and liked it. I just like having all my cc services under one brand.
Posted via Mobile Device

cpllawncare
01-28-2013, 09:14 PM
I take paypal also that makes perfect sense to have it setup that way! I think I would rather have the money in my business account though not my paypal account

Patriot Services
01-29-2013, 08:43 AM
I take paypal also that makes perfect sense to have it setup that way! I think I would rather have the money in my business account though not my paypal account

I don't leave much in it. I just have the option of getting cash at an ATM, charging a purchase or transferring funds to any account of my choosing.
Posted via Mobile Device

KG26
02-08-2013, 10:42 PM
I'd hold off on credit card pmt. If you have a large volume of customers who will go this route then it will pay off if not you will eat the charge. If you are adding the fee to the estimate then the next guy who is a legit $3 lower than you are will get the job.

magicmike
02-08-2013, 11:26 PM
I think chase as something like square also, and I think it might be a little cheaper I havent really researched it yet. But check it out.

Patriot Services
02-09-2013, 10:11 AM
I'd hold off on credit card pmt. If you have a large volume of customers who will go this route then it will pay off if not you will eat the charge. If you are adding the fee to the estimate then the next guy who is a legit $3 lower than you are will get the job.

Not having the ability to accept cc in this day and age makes you look a little dated.
Posted via Mobile Device

newguy123
02-09-2013, 10:36 AM
I like to keep cost of business as low as I can. I pay 1.4% on debit cards and 1.65% on credit cards.

Who do you use for that low of a rate?

cpllawncare
02-09-2013, 03:25 PM
I'd hold off on credit card pmt. If you have a large volume of customers who will go this route then it will pay off if not you will eat the charge. If you are adding the fee to the estimate then the next guy who is a legit $3 lower than you are will get the job.

If $3 makes the difference I don't want that customer!

Holland
02-09-2013, 03:29 PM
Use google checkout for credit card email link type payments. Paymate makes a nice credit card swipe deal. Never never never try to charge customers cc fees. You eat that small fee for the ease of the transaction.
Posted via Mobile Device

KG26
02-09-2013, 03:48 PM
If $3 makes the difference I don't want that customer!

why is that?

cpllawncare
02-09-2013, 09:40 PM
why is that?

If $3 on price is a deal breaker, I didn't do my job as a salesman.

KG26
02-09-2013, 10:37 PM
I get that but you are there to cut someones lawn we're not selling cars. Anyone with a pulse could do this job. Sure being a people person helps but we aren't curing cancer. In the upscale neighborhoods where I cut a lot of guys are using the same gear or close to it, so its a buyers market.

205mx
02-10-2013, 10:40 PM
125 lawns average 160/ month. 7 months. 2%. Costs you 2,800. Little more expensive than paper and stamps. But not THAT much cheaper.

cpllawncare
02-11-2013, 03:34 AM
I get that but you are there to cut someones lawn we're not selling cars. Anyone with a pulse could do this job. Sure being a people person helps but we aren't curing cancer. In the upscale neighborhoods where I cut a lot of guys are using the same gear or close to it, so its a buyers market.

We don't do much of the mow n go stuff, we leave that to the lowballers and the crumbsnatchers :laugh:

grassman177
02-11-2013, 03:51 AM
the guy with the crazy low rates has still to answer who he uses for that great of a price. i am sure everyone here would want to use the cheapest rate for the service..................

cpllawncare
02-11-2013, 04:09 AM
I get that but you are there to cut someones lawn we're not selling cars. Anyone with a pulse could do this job. Sure being a people person helps but we aren't curing cancer. In the upscale neighborhoods where I cut a lot of guys are using the same gear or close to it, so its a buyers market.

Anyone with a pulse can sell cars also, and really anyone with a pulse can sell if they have that certain personality and gift of gab ability, don't put yourself at the bottom of the rung, there are lots of jobs out there that don't require a whole lot of brains to do, and there are lots of people out there that are highly educated that couldn't do what we do even if they had to. I know it's not rocket science but it still beats working for the other guy, by a long shot! and that's the beauty of it all. I have people tell me all the time I wish I could do what you do.

ELS Landscape
02-11-2013, 06:57 AM
Anyone with a pulse can sell cars also, and really anyone with a pulse can sell if they have that certain personality and gift of gab ability, don't put yourself at the bottom of the rung, there are lots of jobs out there that don't require a whole lot of brains to do, and there are lots of people out there that are highly educated that couldn't do what we do even if they had to. I know it's not rocket science but it still beats working for the other guy, by a long shot! and that's the beauty of it all. I have people tell me all the time I wish I could do what you do.



Do not be a "me too" guy.

Make people feel good about being smart enough to hire you. :drinkup:


Back to the CC thing. I use Intuit Payment Network and Intuit Merchant Account. I am very seriously considering dropping the merchant account altogether.


There is no way CC companies are going to offer 1, 2 percent points back to comsumers and only charge less than 2% to the vendor. I am often hit with 3.9% and I am told that is the default fee when someone uses a reward card.

The way they do this is the transaction fee of say 1.75% is taken out when you get your money. Then at the end of the month they hit you with the extra fees. It is very confusing.

There are interchange fees,
There are qualified discount rates ( this is the intial fee)
Then they come back and hit you at the end of the month with Discount Qualification Fees which I am told is keyed in rate vs swipped rate as well as the surcharge for the reward cards.


Looks like there is about to be a class action settlement where visa, Master Card and all the big banks are going to settle without admitting liability.

Smart money says the settlement will only help Visa and Master card.

http://www.nytimes.com/2012/08/09/business/smallbusiness/visa-and-mastercard-settle-lawsuit-but-merchants-arent-happy.html?pagewanted=all&_r=0