CC as payment

Discussion in 'Starting a Lawn Care Business' started by nccutter, Jul 28, 2008.

  1. nccutter

    nccutter LawnSite Member
    Messages: 50

    Anyone here accept or have you ever accepted credit cards as payment? If so, what are the pros and cons Thanks everyone
  2. flydelsolsi

    flydelsolsi LawnSite Member
    from SE PA
    Messages: 71

    you can easily set yourself up to take credit cards though paypal. cc less risky than checks, but you lose a percentage.
  3. AJ Lawnscapes

    AJ Lawnscapes LawnSite Senior Member
    Messages: 322

    What I do with PayPal is this:

    The customers bill will be $50
    Paypal takes 3%
    You would get: 48.50

    But, so that I get my full rate for the job, I charge them more to use CC.
    I always take what they owe, and then find the next highest number minus 3% that gets me closest to their bill.

    You would charge them $51.75 so that you get $50.1975.

    But somehow it never quite works out like that when you get the money.
  4. nccutter

    nccutter LawnSite Member
    Messages: 50

    thank you....3% worth!!!!

    LBLC_LCO LawnSite Senior Member
    Messages: 402

    Most of my accounts pay by paypal, I just add the fees in and it seems to work out well. It's convenient for them and me.
  6. evergreenedmond

    evergreenedmond LawnSite Senior Member
    Messages: 310

    We set our customers up on an auto pay system through credit cards. We bill them either on the last day of the month or after their last cut of the month. It depends on the customer & what program they are on. We also have our weed control & fertilization customers set up on auto pay after each visit. It is definately worth the small percentage to not have to wait on checks to come in. I have found that customers will sign up for a lot more if they don't have to write a check for it.
  7. CMLandscaping32

    CMLandscaping32 LawnSite Member
    Messages: 12

    It is really only worth it if you have alot of customers
  8. MowHouston

    MowHouston LawnSite Bronze Member
    Messages: 1,012

    PayPal is actually 2.9% +$0.30 per transaction.

    If you want to simplify the PayPal fees issue, check out (30 free trial and normally like $4.36 a month or something)

    Firstly, you can set your invoices so that the customer pays that 2.9%. Problem solved.

    Also, you can keep track of your customers, invoice them, have them pay online, etc. Its pretty handy, but not for my business anymore. I think it works great for small businesses.

    To answer your question about credit cards. Here is how it works:

    You are going to get charged:

    1. A percent per transaction. Usually ranges from 2.1% to 2.9%.
    2. A fee per transaction. Usually rangers from $0.25 - $0.30 per transaction.
    3. Monthly customer service fee. Ranges from $15/mo to $40/mo
    4. Accepting Discover and American Express come with different % charges of their own. I dont even accept them because its stupid.
    5. You may have a set up fee to get it all started.
    6. There may be an annual fee of up to $300.

    Lastly, expect your money to hit your bank within 48-72 hours from the time you run your credit card batch for the day.

    In short... If you really want to find a credit card merchant service, READ THEIR TERMS OF SERVICE. You need to root out these fees. Some will have low percentages and low fees per transactions but nail you with a big annual fee.

    I do mine through Bank of America and it isn't half bad. My money gets deposited the very next day into my business account.

    On a final note, I prefer credit card billing to PayPal because I get my money when I want it. Not when the customer wants to pay. No more late fees, no more calling the customer to remind them to pay, etc. No PayPal disputes when an unruly customer decides he/she is wants to be a prick. (You will lose PayPal disputes. Services are not seller protected.

    I keep all of my customer's info on file and bill them when its time. Done deal.

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