Extra $ Using a Credit Card?

Discussion in 'Lawn Mowing' started by br549oicu8, Nov 1, 2007.

  1. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Posts: 1,230

    Any of you guys ever had the experience of a dealer charging extra if you use a credit card? I called one of the dealers yesterday I frequent to order another new Stander at the 17% discount Channel Partner program. I was told he would have to add 2% on if I used a credit card. I declined, called another dealer and had nothing like that mentioned. Guess you know who got the sale!!
    Buddy
     
  2. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    its prob because his profit gets less with the partner program
     
  3. newz7151

    newz7151 LawnSite Silver Member
    from Tejas
    Posts: 2,419

    Likely true, because if his showroom price is at MSRP and the Channel Partner thing is taking 17% off of that, it's likely his whole margin on that machine, so when you want to pay with a credit card that can carry a charge reasonably of 2% to the dealer in order to process, then yeah, I could see how they would want to break even on the deal instead of essentially paying you 2% to take the machine off their floor. Maybe the other dealer didn't think about the processing charge of the CC and is going to find he lost almost 2% on the deal instead of making anything.
     
  4. 04superduty

    04superduty LawnSite Member
    Posts: 60

    i have been told that there is 3% charge for a company to accept credit cards(CC). usually a business just figures that into their prices but others do not feel that every one should have to pay for those that use CC.
     
  5. topsites

    topsites LawnSite Fanatic
    Posts: 21,653

    What do you think has held me back from accepting credit cards myself?
    You know it, that *&%^'n banking charge.
    Oh it's only 2% huhuhu...
    And now you know what only 2% feels like.

    But if a business decides to accept cc's then they shouldn't charge extra, at least not like that.
     
  6. logical

    logical LawnSite Member
    Posts: 38

    Federal law used to prevent a merchant from charging extra for using a credit card. That law expired over 10 years ago but all the big credit card companies still have a similar rule in their agreements with merchants. So, a merchant can do this and not break any law but they are most likely violating the agreement terms they signed with the card company.

    back when the law was on the books and even today many merchants get around this by building the card fee into prices and then offering a "cash discount" equal to the fee....which varies but is generally 2% for a mid-size company using VISA or MC.

    I think it was pointed out above that most merchants are smart enough to know that chances are the fact that they accept the cards pays off in extra business and avoiding having so much cash on hand.
     
  7. phntmfoot

    phntmfoot LawnSite Member
    Posts: 59

    As a dealer, the 2% should be factored into the price. You already get treated like a used car dealer when you sell lawnmowers. I think most people would be surprised to know exactly how little dealers actually make on this new equipment. Not alot of room for "haggling" as so many shoppers like to do.
     
  8. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Posts: 1,230

    I talked with Bill Wright in Louisville about the Channel Partner discount. He told me it was a win-win-win situation with the manufacturer, dealer and end user all coming out better. I kinda figured by that he meant the dealer got something back or lower costing during that discount season.
    Just a hunch.....
    With that in mind I was kinda surprised about the 2%.
    I do understand a few above comments. It does suck to have to pay the cc company that much for the "privelege" to accept cc as a form of payment.
    The real funny part is that the company that wanted to charge the 2% and the one I ordered from that didn't have the same ownership!!!
    LOL!!!
     
  9. phntmfoot

    phntmfoot LawnSite Member
    Posts: 59

    "The real funny part is that the company that wanted to charge the 2% and the one I ordered from that didn't have the same ownership!!!
    LOL!!!"

    I'm not sure i understand what this means.......
     
  10. br549oicu8

    br549oicu8 LawnSite Bronze Member
    Posts: 1,230

    Same guy owns 2 stores...............
     

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