Did accepting credit cards help?

Discussion in 'Pesticide & Herbicide Application' started by Rayholio, Aug 28, 2007.

  1. Rayholio

    Rayholio LawnSite Bronze Member
    Messages: 1,461

    I've always been paid via check or cash... it's free.. I like it.

    Does allowing customers to pay with credit cards in our business actually help to increase revenue? or lower cancellations?

    What are your thoughts?
  2. ampeg76

    ampeg76 LawnSite Senior Member
    Messages: 297

    i also only accept checks and cash:)

    other guys in my area accept credit cards/debit

    does it help? i would say its more convenient for most customers, people can be lazy, so having exact change and having to write, oh no lol, is a pain for them!

    i wouldn't think people would cancel because you do not except cards, good work is good work

  3. ArizPestWeed

    ArizPestWeed LawnSite Bronze Member
    Messages: 1,457

    Most all my clients pay by automatic CC payment s using QBs .
    I set it up , happens on the 5th of each month .
    I get about $7,500 every month at one time in my account .
    I love it , almost zero maintenance .
    It's mandatory for all new clients
  4. sclawndr

    sclawndr LawnSite Senior Member
    Messages: 326

    Yes, accepting credit cards help. Anything that makes it easier for the customer to pay is good. My credit card customers buy more too.

    Ugh!!! Don't solicit cash payments. I know it looks good in your pocket but nobody who take cash looks very professional. Every customer knows it won't be reported as income so they know you're at least a tax cheat. And I've never had someone offer me cash that didn't want a fat discount too. You don't see the big boys taking cash and it's not because they enjoy paying taxes.

    Then again, what do I know? Seems like everyone but me does something under the table.
  5. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Messages: 5,954

    We only take checks or sometimes cash. My wife's the bookkeeper, so I have no say in the matter. Two negatives I know about credit cards: 1) It costs about 3%, 2) Customers can quickly cancel payment if they have a beef. My two cents worth.
  6. sclawndr

    sclawndr LawnSite Senior Member
    Messages: 326

    Americanlawn is correct - there is a stiff fee for non-swiped transactions. Mine ends up being 4% when it's all said and done. Still, I've never had one come back on me and there is a benefit to getting the cash much sooner than if it were a check.
  7. americanlawn

    americanlawn LawnSite Fanatic
    from midwest
    Messages: 5,954

    Thanks sc --- We bring in over 750K not counting the mowing (subcontracted). So 4% of $750K = about $30,000 (not counting the mowing). That's alot of money I'd rather spend on employee salaries and equipment. My two cents worth:usflag:

  8. mkroher

    mkroher LawnSite Senior Member
    Messages: 539

    american, what percentage are you making on your mowing subs? Is it worth the hassle? If a customer complains about a mowing issue, do they call you?
  9. Rayholio

    Rayholio LawnSite Bronze Member
    Messages: 1,461

    Credit Cards; 3-5% seems pretty hefty... that's the main reason that I have never set it up.. it would be nice to have auto-billing... but 3%? much cheaper to send the bill and wait.

    Cash; every time I've offered a 10% discount for cash payment, my customers have jumped on it... and you're right.. with most people, it won't be reported.. that saves like 20-40% depending on your tax situation. especially nice on $1,000 + jobs

    Check; It probably costs around 1% after postage, paper, and labor on unpaid statements... a very good offer. Can't you set up checks on an auto-draft?? be better than CC right?

    I was hoping that there was something 'magic' about credit cards.. like ppl never cancel because they don't realize that they're really spending the money or something...
  10. ArizPestWeed

    ArizPestWeed LawnSite Bronze Member
    Messages: 1,457

    I pay about $150 a month with $7,500 in CC business .

    It pays for it's self .
    I NO LONGER sit at my 'puter typing up invoices ,stuff envelopes , recieving envolupes wiht checks , siting at my 'puter logging in all the checks .
    I save hours and $ and head aches and I get my money on the 5th of the month and some scatter through out and , of course , I still receive about 100 checks a month .
    400 clients , 300 using auto pay with CC , 100 the old fashioned way

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