credit cards

Discussion in 'Business Operations' started by scaglawnsnj, Jan 27, 2005.

  1. scaglawnsnj

    scaglawnsnj LawnSite Senior Member
    from nj
    Posts: 435

    Do any of you guy take credit cards..Was it a more profitable year when started taking them? I know how much most people love credit..I think they will be more willing to have a land projects done with credit not lump cash.
     
  2. GrassMasterNC

    GrassMasterNC LawnSite Member
    Posts: 119

    gmj,

    I use propay. Very easy. Extremely user friendly.

    $35.00 annual fee to start your account + $25.00 annual fee for if you want to be able to phone in your credit card payments. You can either do it online or right at your customers house. I think the fee is like 3.5% + .35 each transaction. It goes to your propay account and you can transer the funds to your business checking account whenever you'd like for a .35 fee. I like propay, but have not used them much - will push it more this year. A lot of customers love the ease of just paying by credit card or visa debit card. The only glitch - and it's not that big of a deal - is adjusting your income and expenses after you deduct the fees so your books add up right.

    Anyways, did a lot of research and finally decided to go with them....easy and convenient, and many people prefer to pay that way I am finding now. Looking forward to using them a lot more this year.

    Matt
     
  3. Eddie B

    Eddie B LawnSite Senior Member
    from gone
    Posts: 859

    Accepting online payments via PayPal seems to result in less late bills.
     
  4. ALarsh

    ALarsh LawnSite Silver Member
    from Midwest
    Posts: 2,412

    I don't do credit cards but I am going to push people to pay via paypal this year.
     
  5. kdbetters

    kdbetters LawnSite Member
    Posts: 70

    I just started collecting them, however Ifeel that it is more convinient for the customer, and cut down on collections time.
     
  6. brucec32

    brucec32 LawnSite Platinum Member
    Posts: 4,403

    It is one way to go. On the pro side, you are more likely to get paid since they can always charge it and they will put off the guy who they have to pay cash/check to and slide by another month.

    The negative is that someone who doesn't have $100 or whatever in their bank account is a marginal customer.

    Yes, it can be a convenience item for some, but if that was all they wanted you could set up a direct debit from a bank account rather than a credit card. My impression is that someone who thinks giving his credit card out to his lawn guy is a great idea is someone who isn't my kind of customer. In 13 years I've been asked about it exactly once, and that was my first year in business, long before it was commonplace. No great harm in it, but I am suspect of those who claim it's a big selling point that wins them customers. They may be getting customers with nothing in the bank. I am looking for long termers, not just filling a slot for a season or two.
     
  7. JimLewis

    JimLewis LawnSite Fanatic
    Posts: 6,835

    We do take credit cards, but that's because we are a full scale landscaping and irrigation company too. So 95% of the credit card transactions I do are for larger installation type jobs - not for lawn care.

    If I still did JUST lawn care and clean-ups, I probably wouldn't deal with the hassle of credit cards.

    Jim
     
  8. Team Gopher

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

    Hi gmj lawns inc,

    It's nice to be able to accept them. The more avenues you have to take payment the better. Then you could also set up your website to allow for payment online as well.
     
  9. yamadooski

    yamadooski LawnSite Senior Member
    Posts: 434

    Most CC's charge around 3%.
    Now in $100k thats $3,000. I could use that money to buy better things or just plain invest it elswheres.
    Just my .02.
     
  10. kdbetters

    kdbetters LawnSite Member
    Posts: 70

    To be honest, I would take that hit if it means that I could get my money ina timely fashion. What about the interest that builds up if someone is not paying you or the time and money put into collections. Like someone else mentioned on a similiar thread, its almost like giving them a small discount for paying with their credit card or on time.Also the $3,000 will probably go into something that will make the business better, you don't think being able to accept credit cards is not making the business better. I do, just my .02!
     

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