Anyone else using AutoPay for their residential customers?

Discussion in 'Business Operations' started by JimLewis, Jul 10, 2006.

  1. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,872

    Several years ago here on Lawnsite, I brought up the concept of having residential customers set up on AutoPay. The idea being you don't bill them every month, it just comes out of their account automatically. This totally eliminated our accounts receivable problems. Of course, most customers resist the idea. So you have to make incentives for them to chose it. And I've gone over how to do that in detail in other threads.

    Anyway, that's not what this thread is about. I just wanted to write and see if anyone else had ever implemented anything like this in the last few years. Back when I first posted, I was the only one doing it and about the only one who even thought it was a good or workable idea. But I am curious now to see if any others have implemented AutoPay into their business since that time.

    We still have well over 100 customers on AutoPay and over 90% of our new customers chose it.

    I know JustMowIt has a form of credit card autopay where he charges the customer's credit card every week. Any others?
  2. T.E.

    T.E. LawnSite Senior Member
    Messages: 799

    I'm not doing the auto pay, however "ALL" new customers must pay by c.c. and it is a monthly fee. Most have been very receptive to this policy. Later, Tony
  3. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,872

    So how does that work? They have to call in with a credit card once a month? Or do you store their CC number and charge it once each month?
  4. 2 clowns mowing

    2 clowns mowing LawnSite Senior Member
    Messages: 566

    all of my customers pre-pay for each month i send out reminders at the end of the month and haven't gotten any problems yet
  5. T.E.

    T.E. LawnSite Senior Member
    Messages: 799

    I store the number in their file, and charge it once a month. I will send an invoice via email showing it paid. So far it works great, most of the time the money is in my account the same day as the transaction. Later, Tony :)
  6. JimLewis

    JimLewis LawnSite Fanatic
    Messages: 6,872

    Yah, well that's pretty much considered AutoPay. You're automatically charging their card each month. Cool. Anyone else?
  7. PROCUT1

    PROCUT1 LawnSite Platinum Member
    from TN
    Messages: 4,891

    We do the same thing here, weekly. Its the only way to go, with such small profit margins on mowing you cant afford one person not to pay their bill at the end of the month.

    ENDURO LawnSite Member
    Messages: 64

    I have their card # on file and I charge it everytime I mow. I don't even send out receipts or invoices. Some have asked about receipts and I just politely inform them that we don't send out receipts b/c they already have their monthly credit card statment as a receipt. I will never send out bills, invoices, receipts, collection letters ever again with any business I run. Managing accounts receivable is a big money looser for me. Way too time consuming and you have to wait over 30 days for payment. If I do have a residential client who does not have a credit card, I make them pre-pay w/ cash, no checks of any kind. I will accept commercial checks, but they too are on the 30 day pre-pay plan. The pre-pay plan is great. If they are 3 weeks late w/ a payment, they are actually still 1 week early. Keeps me from getting angry thinking that they may not pay. No real complaints so far.

    HOOLIE LawnSite Gold Member
    Messages: 3,981

    This is what I do, for all new clients this season. On their billing date I print out a statement with the mowing dates and their payment (that I just charged) so they see the zero balance. Has been working very well.
  10. thes

    thes LawnSite Member
    Messages: 106

    How did you approach customers with this it part of a contract? Or did you just ask for the cc #? I am very curious about this way of collecting payments.

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