Credit Cards

Discussion in 'Business Operations' started by Tim Enix, Nov 27, 2003.

  1. Tim Enix

    Tim Enix LawnSite Member
    Messages: 26

    Do any of you except credit cards? I am looking at doing so next season and would like to know if you get many customers that like this service.
  2. tiedeman

    tiedeman LawnSite Fanatic
    from earth
    Messages: 8,745

    less than 1% of my customers use credit cards. I have seriously been thinking about just dropping the processing all together.
  3. SodKing

    SodKing LawnSite Bronze Member
    Messages: 1,641

    Its a cheap way to offer quick payment terms. It is also useful on the collections side. Quickbooks Pro makes it so easy its hard not to offer the service. Plus many of my clients do not live in the house year round and have us charge the card and send a receipt with what we have done.
  4. Equipguy

    Equipguy LawnSite Senior Member
    Messages: 370

    Makes it easy for your residential customer to pay, also good for residental install jobs. None of our commercial customers us it.
  5. Green in Idaho

    Green in Idaho LawnSite Senior Member
    from Idaho
    Messages: 833

    Excellent choice to have it available where you only have a few transaction or small dollars involved.

    Even if they don't do paypal, you can even do it over the phone. They just give the info over the phone while you type into form as if you where them....

    Best of all no fees when you don't use it.

    I like it.
  6. Team Gopher

    Team Gopher LawnSite Platinum Member
    from -
    Messages: 4,040

  7. Tim Enix

    Tim Enix LawnSite Member
    Messages: 26

    Thanks for the info.
  8. GarPA

    GarPA LawnSite Silver Member
    from PA
    Messages: 2,585

    If we get enough requests for it we'd do it...but have had no requests. I'd offer it only if we were losing business over it.
  9. DFW Area Landscaper

    DFW Area Landscaper LawnSite Silver Member
    from DFW, TX
    Messages: 2,116

    Here's one thing to think about with credit card billing. I have thought seriously about making it a requirement for full service mowing accounts just for the sole purpose of improving collections and cash flows.

    If you can't actually swipe the card, you'll pay about 4%. If you can swipe the card, you can get that fee all the way down to less than 2%. Since you'll be billing your customers once a month, you'll only have their account number and expiration date, so you'll pay around 4%.

    That's 4% off the top of everything you bill. Plus, there'll be a monthly fee as well, at least that's what I was seeing when I looked into it last time. The monthly fee was another $35.00 per month.

    I have so far grossed about $35K this year and cleared $14K, excluding depreciation expense. (It's my first year and I hope to at least triple that next year...if I don't there sure as heck won't be a 3rd year!) But let's assume I had billed 100% of my work to credit cards all year.

    Had I billed through credit cards for everything, I would have paid $1,400 in processing fees plus $35 per month. Total cost for credit cards would have been $1,820.00. Instead of making $14,000 this year, I would have made $12,180.00. That's a pay cut of 13% although the credit cards only take 4%.

    I just don't think credit card billing is in my immediate future.

    As for getting set up to take credit cards for the occassional customer who may ask for it: I figure if they've got a credit card they've got a check book too. I'm not gonna pay $35/mo for the occassional credit card junkie. So far, this year, only one customer has specifically asked me about paying via credit card...when I explained that I don't take them, she just whipped out her checkbook.

    DFW Area Landscaper
  10. kootoomootoo

    kootoomootoo LawnSite Platinum Member
    Messages: 4,369

    Credit Cards are great .................people have no problem spending money they dont have. .............. $500 in lawn care or $5000 on an install charged to a credit card is an easier sale and less painfull to most than having to write a check.

    Gives you credibility and the serious customer an out with the credit card company should something go wrong.

    Pay $19.00 a month, no transactions - no fee, 2.9% per transaction. About 25% of customers use it.

    I dont buy into the losing 2.9% argument. I consider it an investment. Market it to your advantage.

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