Credit card fees

Discussion in 'Bidding, Estimating and Pricing' started by Mow Money Lawn Care, Jan 30, 2019.

  1. Mow Money Lawn Care

    Mow Money Lawn Care LawnSite Senior Member
    Messages: 875

    I am going to offer credit card payments this year for the first time. I have never offered it due to the fees involved. As a small business, 3% is a lot of money. I am considering passing on the fee to the customer as it is legal in my state. Do any of you pass the fees on to your customers? What is the feedback?
  2. Matthews Lawn Care

    Matthews Lawn Care LawnSite Silver Member
    Messages: 2,613


    Most think it’s a load of crap as do I.

    How many times have you used a cc somewhere and had to pay the convenience fee? Were you happy to pay an additional 3%?

    It’s a cost of doing business. It’s also more convenient for you than it is the customer.
    tdoeizreal likes this.
  3. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 6,036

    I pass the fees on but not in a way they see it. As it is Incorporated into my overhead recovery rate. I expect clients to pay with a card and when they don't I make a little extra. It's not like the cost of cards isn't a tax write-off anyways.

    Personally if I was paying for something and they put a fee in front of me for paying with a card I would use a different payment option or avoid that business altogether. Usually I just avoid that business as there is plenty of other options in every business.
  4. OP
    Mow Money Lawn Care

    Mow Money Lawn Care LawnSite Senior Member
    Messages: 875

    I have had to pay a convenience fee many times. I can say I would try to use another payment method if possible in this situation. As I would expect my customer to do if they do not want to pay the fee.

    As a small business, it isn’t that convenient for me unless I build the 3% into my pricing. I may get money a bit faster, but in the end, if I don’t build the 3% into pricing, I lose out.

    When my company grows and has a higher revenue and profit margin, this cost would be minimal.
    hort101 likes this.
  5. BigJlittleC

    BigJlittleC LawnSite Fanatic
    from Chicago
    Messages: 6,036

    3% is 3% doesn't matter what size your company is.

    You could look at this 3% as a cost of business and adjust your prices or do nothing and just be happy with the tax right off.

    Don't forget as your business grows and your accepting more cards you can negotiate your rate with these merchants. If I remember correctly once you start charging more then 10k or 15k a month you can get closer to 1% rates.
    Mark Stark and That Guy Gary like this.
  6. That Guy Gary

    That Guy Gary LawnSite Silver Member
    Messages: 2,825

    Margins usually decrease as a business expands.

    Adding a lead, then a supervisor, bigger shop, etc. The % goes down but the value increases to overcompensate. If you do it right at least.

    Just include it in pricing. You'll meet a lot less resistance if you just charge $48 instead of $45 + $3 CC processing fee.
    zlandman, hort101 and wildstarblazer like this.
  7. Gus McGee

    Gus McGee LawnSite Member
    Messages: 149

    You have to choose what is right for your business. I personally just lump the credit card fee into the general overhead, which increases prices for everyone by an insignificant amount.
    hort101 likes this.
  8. Jake the grass guy

    Jake the grass guy LawnSite Senior Member
    Messages: 337

    how do you currently collect your payments? i was getting tired of having to track down customers for payments and figured my time was worth more than the 3% i was being charged.. im currently going to all cards on file so i will be in control if when i get paid and its as simple as a few button clicks. thats worth the 3% imo and like everyone else said.. your customer doesnt see it but its all part of price increases and the cost of doing business.
    That Guy Gary and hort101 like this.
  9. Jake the grass guy

    Jake the grass guy LawnSite Senior Member
    Messages: 337

    hit me up privately if you would like seems we are pretty close to each other.
    hort101 and Doc8406 like this.
  10. River

    River LawnSite Silver Member
    Male, from Wisconsin
    Messages: 2,499

    I would just buid it into your overhead so they don’t see the 3% charge alone. just add a dollar or two on your quote and that should easily cover the 3%

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