Check vs credit card

Discussion in 'Business Operations' started by grassmasterswilson, Jan 13, 2013.

  1. grassmasterswilson

    grassmasterswilson LawnSite Platinum Member
    from nc
    Posts: 4,535

    Going to te bank is not that much of a hassle. Both are 5 minutes from the house and I don't go everyday.

    I was told up here that it wasn't legal to charges credit card fee but I see it all the timeon the interstate where gas stations have a separate cash and credit price.

    So do you have a minimum chare amount? I just hate to pay 3% on a 35 mow.
    Posted via Mobile Device
     
  2. grandview (2006)

    grandview (2006) LawnSite Gold Member
    Posts: 3,466

    According to your agreement with the cc company your not allowed to add a separate charge for using one.
     
  3. kandalawncaremgr

    kandalawncaremgr LawnSite Member
    Posts: 223

    If my customers or potential customers ask if they can pay by credit card or PayPal I simply say yes and just round it up to cover the costs. But I never tell them. But if they ask why does my friend get there's cheaper I simply say that there friend pays cash and thats why they gets there lawm cut for 25 I tell them 30 simply because its more of a hassle as far as fees and all that. I never had a problem. Then most say hell I'll go to the bank because everyone loves a discount.
     
  4. tonygreek

    tonygreek LawnSite Gold Member
    Posts: 3,412

    This changes 1/27. The merchant settlement kicks in, but you need to understand the guidelines (clear disclosure to customers and surcharges not exceeding your merchant fees are the big ones), as well as your own state's requirements.

    http://usa.visa.com/personal/using_visa/checkout_fees/index.html

    http://www.mastercard.us/merchants/support/surcharge-rules.html
     
  5. GW Andy

    GW Andy LawnSite Member
    Posts: 56

    Thanks tonygreek.

    I have been wishing that I could do just that.
    Now I just have to figure how to put it on a Service Autopilot invoice.
     
  6. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284

    This is interesting as one of the landscape suppliers I used constantly had a 2% charge for using a charge card. Although I was a contractor account which I'm not sure is different and may not be subject to this? I'm not necessarily complaining as the 25%+ discounts on materials makes up plenty for a tiny 2% charge.

    But this is the first year I will be offering credit card payments but I really only see people using that for landscaping work and not mowing. Plus as others have posted in different threads having credit card payments can save trips to the bank, stamps, envelopes, etc.... that could make up the small percentage you pay in fees. I mean a $35 lawn will cost you a $1 in fees. Charge $36 this year if the $35 still cuts it. If they don't use credit you make an extra buck but not a surcharge. I don't know, is that shady? I dont think so. It's a price raise like any other a business would do to cover costs.....
     
  7. krzys555

    krzys555 LawnSite Member
    Posts: 109

    We have switched to requiring credit cards from everyone. for mowing accounts we charge every week. For design install we give the option of 50% deposit by check but final payment is to be made via credit card.

    We do not charge a surcharge for payment.

    You need to decide if you want to wait sometimes 2-3 months after you mow a property to get paid or pay 2% for money the next week.

    we have a steady inflow of cash every week. we can plan purchases as well as know we will get paid on time, every time. when people need to send you a heck some do it right away while others wait to do it, then they will forget to send you a check.
     
  8. Patriot Services

    Patriot Services LawnSite Fanatic
    Posts: 12,678

    With the new "smartphone check pic" apps from most banks physically going to deposit checks has become a thing of the past.
    Posted via Mobile Device
     
  9. MDLawn

    MDLawn LawnSite Bronze Member
    Posts: 1,284


    Very valid points
     
  10. krzys555

    krzys555 LawnSite Member
    Posts: 109

    but you still need to get the check!
    It does not matter if you could deposit a check for your bed, without ever having to get up. but if you don't have the check, you can't deposit it, and you can't get paid.

    You could use post dated checks, but we never got any even with incentives.
     

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