Payment options (PLEASE READ)!!!!!!

Discussion in 'Business Operations' started by ChadA, Feb 3, 2007.

  1. ChadA

    ChadA LawnSite Senior Member
    Posts: 521

    I have been getting lots of requests for credit cards lately. I already checked into it and the cost just isn't worth it right now( I know it will in the long run).
    I only get about 1 out of 20 wanting to pay this way now. But when they do they want to pay a month in advance. So my question is can I have them pay me online through my paypal account. I have a few out of state customer who wants to start paying online.
    Any feedback is appreciated.
     
  2. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Posts: 2,121

    I have some advice for anyone looking to buy a credit card machine. First, listen to my story.

    When I was 18 years old, I decided to start a business repairing and selling computers. Not long after getting my business license, I got a slew of calls from people wanting to provide merchant bank (credit card processing) services. Being young and nieve, I went with the first company that called. The cost for my credit card machine - around $4000. The salesman told me, this is a good deal, you can lease it for so much per month for 4 years and then you own the machine. "even if you find a used one, you have to pay us an additional $150 to set it up to work with our bank, so its not worth it.

    I bit on it because I did not know any better, and there was tremendous pressure to agree on the spot.

    When I searched around online to see how much could buy one for, it was around $150. I almost crapped my pants. I had already signed the lease, and the lease payment per month was more than I could have paid for the machine.

    Not that long ago, the local hardware store that I frequent had a new credit card terminal, a little more advanced than mine, but the owner told me that, even though it cost me $4000, I am getting a better rate from this company so it will work out over time. I have a feeling he got taken just like I did, but did not have the heart to tell him.


    I feel really stupid sharing this, but I don't someone to get into the same situation. don't make the same $3700 mistake that I did
     
  3. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Posts: 2,121

    BTW - Chad as to your question, go to Staples and check out Quickbooks Credit Card procesing, no machine to buy, just type the number into the software and get approved online. Only cost $20, and the percentage rate is lower than paypals. I've never used it, but I have had a few customers that have (I work at Staples) and are happy with it
     
  4. corey4671

    corey4671 LawnSite Silver Member
    Posts: 2,931

    paypal will work, but I would add a convenience charge to cover the paypal charges...convenience costs SOMETHING
     
  5. Mr. Vern

    Mr. Vern LawnSite Senior Member
    Posts: 632

    Paypal is one of the most expensive rates per transaction, but if you are only going to do a few per month, you will likely find it to be the most cost and time effective solution.

    Our materials yard uses an account through our bank and the rate is very competitive if we physically slide the card. If we type in the number, the rate goes way up. I looked into one for the landscape installation business and so far I had found that the Sam's club offer was the best I could find. As it stands, I do everything I can to resist allowing people to use their card on an install that costs 10's of thousands of dollars but if I was going to lose the deal because of it I would just eat the expense.

    Check out the Sam's club deal. If you are doing maintenance you will not physically have the card each month so the software solution will work better for you than the machine. I would compare that to the Quickbooks offer mentioned previously.
     
  6. ChadA

    ChadA LawnSite Senior Member
    Posts: 521

    Thanks everyone. Great stuff so far.
     
  7. Fantasy Lawns

    Fantasy Lawns LawnSite Bronze Member
    Posts: 1,913

    Why can't they pay online ???

    Does their own bank not have online banking??

    I get plenty of payments this way .... customer sends the check electronic n the bank in turn sends me a hard copy .... bada bing ...bada boom

    I pay my own bills on line fore years I have not written a check from cable to insurance .... fore the $5 per month Washington Mutual charges me fore online banking I save in postage .... ease ....not signing those stupid checks or them getting lost
     
  8. dekalb lawn man

    dekalb lawn man LawnSite Member
    Posts: 134

    Be careful about how you word the charge for the credit card. I have heard that it is illigal to charge for it. I think convenience charge would probably work though as corey said. This is just what I've heard. Please let me know if i'm wrong.
     

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