Credit Card Fees

Discussion in 'Business Operations' started by tiedeman, Oct 15, 2003.

  1. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    As many of you know the last 2 to 3 months I have been cutting back on expenses big time. Right now we process Visa and Mastercard through our Quickbooks and we pay a base monthly rate of $14.95 for the service. I was wondering whether or not this is a high charge for a base rate? Just curious
     
  2. We pay 2 1/4% with a $25 month minimum
     
  3. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    oh..see I pay the base rate, and then the percentage of the sales. Maybe the one that I have is not bad then
     
  4. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Posts: 4,041

    Hi tiedeman,

    What % of the sales do you pay?

    Here is a quote from this site.

    "Processing fees can range from around 2.0% of annual sales volume for a retail establishment to 2.75% of annual sales volume for online transactions."

    Here are some more statistics from this site.

    "Application fee ($0 — $300)
    Installation/setup fee ($0 — $100)
    Bank setup fee ($0 — $75)
    Terminal costs ($200 — $2000)
    Statement fee ($0 — $10 per month)
    Minimum account billing (varies...often not required)
    Chargeback fee ($0 — $25)
    Voice authorization fee ($0 — $1 per call)
    Transaction fee (Varies, usually around .20 per transaction)
    Daily close-out fee (Varies...often not required)
    Discount rate (1.75% to 3% of sale)"
     
  5. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Posts: 8,745

    2.35% for sales, $14.95 monthly service fee, and then .20 cents for each authorization
     
  6. I am about to cancel our processing and not start up again....I have been taking credit cards for about 5 years...initially it was done in order to get slow payers to pay faster...doesn't work for me. Plus, the fees are starting to make me angry.

    The other reason we did it was cash flow...but now that the business is bigger...cash flow is less of an issue. So...I am thinking of saving the 200 bucks per month it ends up costing me!

    Instant boost to the bottom line.
     
  7. LawnMowerMan2003

    LawnMowerMan2003 LawnSite Senior Member
    Posts: 768

    I got a call from this guy who sells wireless terminals you can take with you, who said advertising I accept credit cards could increase business. However, with his leasing costs of about $100 a month for those terminals, I don't see how it would bring me enough extra business to be worth the cost.

    I'm curious how you bill the customer if have a terminal at your home or office?
     
  8. use the manual slips and get them to sign it...when you get home you manually key it...costs a little more but it works.
     
  9. lawnMaster5000

    lawnMaster5000 LawnSite Senior Member
    Posts: 589

    My fraternity has accepted credit cards for years and alwas paid a monthly base rate plus 3%.

    The other day i called in and told them i wanted to cancel or find a way around the mothly charges. The guy on the phone changed my service to wipe out all monthly and per transaction fees. Now we only pay 2.5% on transactions. That is with FirstData aka Transaction Solutions LLC.

    It is worth a try to see what they can do with your rates. Either with your company or a different one.

    PS - we do maybe $1,000 per year at most via credit.
     
  10. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Posts: 833

    Using PayPal www.paypal.com could be a reasonable substitute for merchant credit card accounts.

    PP does not charge a monthly fee. So for months of no cc sales the cost is $0. Nothing special required. It can also all be done online, so your invoices could say

    "Please remit check or pay online with PayPal payments to payments@lawncompany.com"

    Then customer could pay 24/7 at their convenience.

    Problem- not everyone is familiar with PayPal yet....

    :dizzy:
     

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