# Do You Accept Credit Cards?



## Admin (Dec 10, 2003)

> "As a contractor, you’re likely accustomed to accepting payments from your clients in cash or by check. If you’ve been in business for several years, it’s what you’ve gotten used to. These days, though, very few people carry cash or want to write checks to pay for anything, including home repairs or improvements..." *6 Reasons you should be Taking Plastic*


Do you accept credit cards?

Why? Why not?


----------



## Framer53 (Feb 23, 2008)

yes
Because the customers want me to.


----------



## NYgutterguy (Mar 3, 2014)

Yes. My business is a service business and there are a lot of customers i don't even see since we aren't there long and they are usually working. 

Been taking cards for about 10 years but last few seems more and more prefer to pay that way. 

I add a few bucks to cover the fee they take. 


Sent from my iPhone using Tapatalk


----------



## heavy_d (Dec 4, 2012)

Yes I do. Not often people choose to pay with them but it's handy to have.


----------



## VinylHanger (Jul 14, 2011)

I've started taking Paypal recently. Most customers who want to use credit cards also use Paypal. It has been great so far with customers from out of state. Makes it easier to get paid and it also allows them to do projects they might have waited on.


----------



## Calidecks (Nov 19, 2011)

About 8 or 9 years ago before the square thingy or whatever that is. I went through Costco purchased a wireless swipe machine, the whole thing cost 800 bucks, and about 30 bucks a month. I also signed a two year contract. I never once used it. I might get asked if I take credit cards once every year or two. So the short answer is no, I no longer accept them. :laughing:


----------



## tedanderson (May 19, 2010)

Californiadecks said:


> I went through Costco purchased a wireless swipe machine, the whole thing cost 800 bucks, and about 30 bucks a month.


I went to another vendor and balked at that idea because in addition to the $800, they wanted a year's worth of monthly fees upfront. I would have taken the deal until they asked me for credit references, financial statements, and a notarized letter from my bank.

You would think that if I was buying your machine with over $1000 upfront out of pocket, I shouldn't have to prove that I am going to pay the transaction fees which come out upfront also. 

So I started taking PayPal.


----------



## VinylHanger (Jul 14, 2011)

tedanderson said:


> I went to another vendor and balked at that idea because in addition to the $800, they wanted a year's worth of monthly fees upfront. I would have taken the deal until they asked me for credit references, financial statements, and a notarized letter from my bank.
> 
> You would think that if I was buying your machine with over $1000 upfront out of pocket, I shouldn't have to prove that I am going to pay the transaction fees which come out upfront also.
> 
> So I started taking PayPal.


My plumber takes credit cards. However, he has to call his credit card vendor, verify the customer and thier information in writing, get it approved, let the customer know they are approved, then have it charged. Then if he has to add anything else to the invoice, he has to go through the whole thing again. Too much hassle.

PayPal just costs me a small fee and a couple days to transfer to my account.


----------



## We Fix Houses (Aug 15, 2007)

I only did 3-4 last year. I have a reader from Sq and PayPal. I can invoice from PayPal its works for me. 

I have a couple out of town owners who I'll send a PP invoice to. If people ask how to pay I say check is good. I can say now I have to charge the fee for credit cards.

Most every resi customer understands the local tradesman is not into absorbing the fees which in turn keeps costs down.

The biggest hang up is if a dispute occurs, I think PP can tie your money up for 6 months...


----------



## BamBamm5144 (Jul 12, 2008)

Square works well. Got the report yesterday of how much I ran in 2015. It was only about 19k so not too many people. Most people prefer zero interest financing.


----------



## dsconstructs (Jul 20, 2010)

I've had a Square account/reader for about 3 years now. I've used it once, try like heck to avoid using it, but it's good to have just in case. 

I've had people ask to have their kitchen or bathroom put on their card, they wanted the miles. But I'm not paying nearly 3% on that kind of invoice :no: 

I've also taken Paypal on one occasion. Weird situation last year on a small repair job that I didn't see coming, but had I not had a paypal account it would have been a pain collecting on that one.

Thankfully, most people know how to write a check.


----------



## KennMacMoragh (Sep 16, 2008)

Does anyone know the cheapest way to accept credit cards without the customer having to use an app? My bank told me I have to pay about $500.00 up front in order to take a credit card. I told him I wouldn't be taking credit cards very often. Only one time right now for a customer who is out of state.


----------



## TxElectrician (May 21, 2008)

KennMacMoragh said:


> Does anyone know the cheapest way to accept credit cards without the customer having to use an app? My bank told me I have to pay about $500.00 up front in order to take a credit card. I told him I wouldn't be taking credit cards very often. Only one time right now for a customer who is out of state.


With square, the customer doesnt need the app, just you.


----------



## KAP (Feb 19, 2011)

I am fervently against accepting them, with the main reason being that the bank shouldn't be entitled to 2-3% of money as an unpaid salesman they had nothing to do with earning... if you can justify increasing your prices 2-3% just to give to a bank, do it anyway and put that money in your families account... not the banks...

Anyone can easily set up a paypal account anytime to accept credit cards, and I use that as a back-up in case it's ever needed... 

Most of our projects are 5-figures, so when I tell customers that anyone who accepts CC's for payment they will be tacking on and the customer paying a surcharge of 2-3% just for that option and they look at the math involved, it quickly becomes a non-issue... I've even had customers say "but I get the points" and when I point out to them that all the points get them is 1% of the value and the bank is still getting 2-3%, they again quickly see that they are paying the bank for the points... so again, its the bank that benefits, not them... and that doesn't even take into consideration any interest they would pay if they don't pay the balance in full...

We tell them we are customer focused, and can do whatever you want, and will accept your CC if you'd like, we just want you to know that neither of us benefit from using the credit card... we both pay...

In the very few times it has come up over the years, I haven't had anyone then want to use the CC after that short discussion... 

If they don't have the money for the project, and are relying on credit to finance it, instead we offer a 90-day same as cash option, and we tell them to use their home equity to pay it off before the 90 days as the interest may then be tax-deductible... and credit unions are their best option as they generally don't charge any fees to set it up... if home equity is not an option, a personal loan is better as it would still be cheaper than CC interest...

I can understand the argument for small ticket items $1000 and under though...


----------



## overanalyze (Dec 28, 2010)

Yes. We use Square. We only have 1 client that pays that way. The fee is added...they know it and are ok with it. Since there are no monthly fees it is perfect for us. We have a reader in each vehicle and the app on my phone.


----------



## 66 Shelby (Jan 11, 2009)

Yes I do. I use a Square and it works great for me, especially on small jobs (under $500 or so). People have just become so accustomed to using their debit/credit cards for payments that it seems to have become second nature to them. CC's are especially common when I do service type jobs - They don't even ask, they just hand over a card (If I invoice on-site).



dsconstructs said:


> I've had people ask to have their kitchen or bathroom put on their card, they wanted the miles.


I get that reasoning a lot. I also pay whatever I can with my Delta AMEX, for the miles - I like to travel.



> But I'm not paying nearly 3% on that kind of invoice :no:


I charge a 'Convenience Fee' of 2.75% for all CC transactions.


----------



## Metro M & L (Jun 3, 2009)

Doesnt make any sense to pay 3 percent to get .5 percent in miles. But hey, its merica and you save money by spending more money to get what you could have gotten for less if you hadnt been paying too much money to begin with.


----------



## 66 Shelby (Jan 11, 2009)

Metro M & L said:


> Doesnt make any sense to pay 3 percent to get .5 percent in miles. But hey, its merica and you save money by spending more money to get what you could have gotten for less if you hadnt been paying too much money to begin with.


It is pretty dumb to pay 3% for the miles, but hey, who am I to argue with a client? :laughing:


----------



## Calidecks (Nov 19, 2011)

Metro M & L said:


> Doesnt make any sense to pay 3 percent to get .5 percent in miles. But hey, its merica and you save money by spending more money to get what you could have gotten for less if you hadnt been paying too much money to begin with.


I have flown my kids at least 30 times free. I don't pay any interest because I pay the card in full each month. The vendor pays. If the vendor wants to charge me then I pay with debit. 

I had 500,000 AMX rewards points at one time.


----------



## dsconstructs (Jul 20, 2010)

Gotta be careful with the convenience fee. A set fee is legal, while charging a percentage isn't.


----------



## Calidecks (Nov 19, 2011)

dsconstructs said:


> Gotta be careful with the convenience fee. A set fee is legal, while charging a percentage isn't.


Yep that is the law.


----------



## KAP (Feb 19, 2011)

Californiadecks said:


> I have flown my kids at least 30 times free. I don't pay any interest because I pay the card in full each month. The vendor pays. If the vendor wants to charge me then I pay with debit.
> 
> I had 500,000 AMX rewards points at one time.


This is a common misconception... You paid interest upfront to use the card... the bank didn't pay anything...

Example...

$10,000 purchase = 10,000 points = $100 in actual cash value

$10,000 x 2-3% surcharge to use card instead of cash = $200-$300 in surcharge...


The bank is ALWAYS ahead...

.


----------



## Calidecks (Nov 19, 2011)

KAP said:


> This is a common misconception... You paid interest upfront to use the card... the bank didn't pay anything...
> 
> Example...
> 
> ...


Bs. It would of cost me the same as cash.


----------



## Calidecks (Nov 19, 2011)

Californiadecks said:


> Bs. It would of cost me the same as cash.


It cost the merchant the 2 or 3 percent. 

If I buy socks from macy's I'm paying the same whether it's cash or card.


----------



## Calidecks (Nov 19, 2011)

Now it could be argued that it's buried in all prices by the vendor, so in essence everybody pays. But not specifically to my purchase.


----------



## Calidecks (Nov 19, 2011)

....


----------



## Calidecks (Nov 19, 2011)

As much as consumers love theirreward credit cards, many merchants hate them. And maybe we should, too.

Why? Because whenever you swipe a credit card, merchants get dinged for a 1-3%*interchange fee. And guess what? Those interchange fees go, in part, toward your credit cards rewards.

In other words, credit card rewards contribute to the costs associated with card processing. And because merchants can’t typically add a*credit card surcharge, many charge higher prices than would otherwise be necessary.

Yes, merchants can mitigate these expenses by refusing credit cards entirely, or by choosing which cards they’ll accept. Indeed, the fact that*American Express*isn’t as widely accepted as other card types is primarily due to their higher costs.to the merchant

And yes, merchants can still offer a cash discount — and some do — but the lion’s share simply pass the costs along to consumers in general.

Interestingly,*according to Trish Wexler*of the Electronic Payments Coalition, one of the most common places to see a cash discount is at a gas station. The reason for this is that paying in cash requires you to go inside, where you’re more likely to make impulse purchases.


----------



## WarnerConstInc. (Jan 30, 2008)

Not this again.


----------



## Calidecks (Nov 19, 2011)

WarnerConstInc. said:


> Not this again.


Awesome!


----------



## dsconstructs (Jul 20, 2010)

WarnerConstInc. said:


> Not this again.


Admittedly not as exciting as mesh vs paper :laughing:


----------



## Calidecks (Nov 19, 2011)

dsconstructs said:


> Admittedly not as exciting as mesh vs paper :laughing:


But it's still on topic. So if dorthy doesn't like it he can move on.


----------



## JR Shepstone (Jul 14, 2011)

Correct me if I'm wrong, but if a customer pays with a CC for a $10,000 project, and the contractor tacks on the, say, 3% to cover the CC company's fee, isn't the CC company charging the contractor based on the $10,300 swipe? Which now brings the total to $10,609. So now the contractors owes an extra $309 anyway?


----------



## Calidecks (Nov 19, 2011)

JR Shepstone said:


> Correct me if I'm wrong, but if a customer pays with a CC for a $10,000 project, and the contractor tacks on the, say, 3% to cover the CC company's fee, isn't the CC company charging the contractor based on the $10,300 swipe?


So it would actually cost the contractor $10,303.00. A 3 dollar loss


----------



## 91782 (Sep 6, 2012)

markup vs margin agin...

10000/.97 =10309.28 ???


----------



## dsconstructs (Jul 20, 2010)

Basically it would cost you $9 out of your $10,000 instead of $300

Or more likely, you're paying 2.75% and charging 3% and coming out about $7 ahead.....(but again, illegally)


----------



## Calidecks (Nov 19, 2011)

dsconstructs said:


> Basically it would cost you $9 out of your $10,000 instead of $300
> 
> Or more likely, you're paying 2.75% and charging 3% and coming out about $7 ahead.....(but again, illegally)


Yep, here's more

Credit Cards Credit Card News Convenience fees: When is it OK to charge extra to use a credit card? 
Convenience fees: When is it OK to charge extra to use a credit card?
By Tamara E. Holmes

Share this Story: 
Paying with a credit card often yields rewards, so why not buy every big-ticket item on a credit card and earn big rewards?

No one could blame you for thinking big, but some of the biggest expenses you can put on a credit card -- including taxes and tuition -- probably won't be the financial slam-dunk you thought they were. Big-ticket items can have an extra cost in the form of "convenience fees."

Convenience fees: Should it cost you to use plastic?
What convenience fees are
Convenience fees are charges levied for the privilege of paying for a product or service using an alternative payment channel, or a payment method that is not standard for the merchant. Movie theaters, for example, typically sell tickets face-to-face in the box office. However, if a movie theater gives customers the alternative option of paying by phone using a credit card, then that theater could charge a "convenience fee." So technically, you're not paying for using your credit card, but for the privilege of using the pay-by-phone option.

Card issuers' policies vary
When it comes to convenience fees, different card processing networks have different policies.

Visa
According to Visa's policy, certain criteria must be met in order for a merchant to charge a convenience fee:

The payment must take place across an alternative payment channel.
Customers must be told about the fee in advance.
The fee must be a flat or fixed price rather than a percentage of the sale.
The fee must be included in the total transaction amount.
The fee must be applied to all means of payment that are accepted in that alternative payment channel.
However, tax payments don't have to meet all of those criteria. "While Visa regulations prohibit merchants from applying surcharges to normal transactions, we do permit our cards to be used for tax payments together with a convenience fee," says Ted Carr, a spokesman for Visa. The reasons for this distinction: Income taxes are government mandates, and federal statute prohibits the Internal Revenue Service from paying the costs associated with credit card acceptance, Carr adds.

MasterCard
Like Visa, MasterCard outlaws surcharges. However, four years ago, the company created the MasterCard Convenience Fee Program for government agencies and educational institutions that were not accepting card payments at the time. "It was an effort for us to make sure that we were providing consumers with that choice in how they wanted to pay," says MasterCard spokesman Seth Eisen. Since the organizations can charge convenience fees, the cost of accepting credit cards is less prohibitive. However, they still must offer an alternative payment channel. MasterCard leaves the fee structure -- whether it's fixed, tiered or a percentage -- up to the organizations in the program.

American Express
Under American Express's policy, "select transactions do qualify for convenience fees including taxes and tuition," says Faust. "However, a merchant must provide an actual convenience in the form of payment, for example, online payment, interactive voice response or a payment kiosk. The fee must also be clearly disclosed before the transaction is completed."

Discover
While Discover doesn't have an official convenience fee policy, it requires that all credit cards be treated the same, says Kathryn Henry, a spokeswoman for Discover. As a result, the rules instituted by the other card issuers would apply to Discover since a merchant cannot levy a fee on a Discover cardholder that it isn't allowed to impose on a MasterCard, Visa or American Express cardholder.
Not a surcharge
Convenience fees are not surcharges, which are costs added simply for the privilege of using a credit card. 

All credit card issuers frown upon surcharges (though most have no problem with offering a discount for using cash). "We believe that surcharging credit card purchases is harmful to consumers," says Molly Faust, a spokeswoman for American Express. "It is not a customer-friendly practice for a merchant to first attract a customer to its store or website to shop, and then to penalize the customer for using a charge or credit card that the merchant accepts." Surcharges are also illegal in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.

Consumer complaints
Not surprisingly, many consumers are unhappy with convenience fees and believe merchants should eat the costs. "Paying by credit card is not a convenience for the customer," says Bob Johnson, a photographer and video producer in New York City. "It's a convenience for the company because the more ways that the company will accept payment the easier it is for them to make more profits."



Read more: http://www.creditcards.com/credit-c...e-fees-cost-surcharges-1280.php#ixzz3wVYiiP3M 
Follow us: @CreditCardsCom on Twitter | CreditCards.com on Facebook 
Compare credit cards here - CreditCards.com


----------



## Builders Inc. (Feb 24, 2015)

Surcharges are illegal but you can do a cash/check discount of 3%. Discounted stuff isn't illegal.


----------



## Builders Inc. (Feb 24, 2015)

They do it for gas at convenience stations all the time. Gas 2.29 a gallon. 2.38 a gallon for credit cards. I see it every week. Sometimes I think thats illegal but No ones there at the pump to say its a cash discount.


----------



## A&E Exteriors (Aug 14, 2009)

VinylHanger said:


> I've started taking Paypal recently. Most customers who want to use credit cards also use Paypal. It has been great so far with customers from out of state. Makes it easier to get paid and it also allows them to do projects they might have waited on.


PayPal has a card swiper too


----------



## Calidecks (Nov 19, 2011)

Builders Inc. said:


> They do it for gas at convenience stations all the time. Gas 2.29 a gallon. 2.38 a gallon for credit cards. I see it every week. Sometimes I think thats illegal but No ones there at the pump to say its a cash discount.


Sometimes that's to get you in the store where your more apt to buy other goodies. :whistling:


----------



## Leo G (May 12, 2005)

No.


----------



## CITY DECKS INC (Sep 4, 2012)

yes and charge the customers the 2%. our payroll service and bank offer free merchant account for up to 3x's per month. we may get 3x's per year.


----------



## KAP (Feb 19, 2011)

The math ALWAYS favors the bank... the rest is their regurgitated marketing to get you to give them the money...


----------



## KAP (Feb 19, 2011)

Californiadecks said:


> But it's still on topic. So if dorthy doesn't like it he can move on.


Irony...


----------



## Calidecks (Nov 19, 2011)

KAP said:


> Irony...


:laughing:


----------



## KAP (Feb 19, 2011)

Californiadecks said:


> :laughing:


Let me re-phrase... hypocrisy on display at it's finest... but there's no counting for integrity right Cali?... :whistling

Banks ALWAYS win the math game... they've convinced a lot of people to simply give up money they don't have to with the mirage of "rewards" that the customer is actually paying for...

.


----------



## Calidecks (Nov 19, 2011)

KAP said:


> Let me re-phrase... hypocrisy on display at it's finest... but there's no counting for integrity right Cali?... :whistling
> 
> Banks ALWAYS win the math game...


:laughing: even harder!


----------



## Calidecks (Nov 19, 2011)

KAP said:


> Let me re-phrase... hypocrisy on display at it's finest... but there's no counting for integrity right Cali?... :whistling
> 
> Banks ALWAYS win the math game... they've convinced a lot of people to simply give up money they don't have to with the mirage of "rewards" that the customer is actually paying for...
> 
> .


It's against Cali law to charge a surcharge.

Everyone pays for rewards whether they use a card or not.


----------



## KAP (Feb 19, 2011)

Californiadecks said:


> :laughing: even harder!


Thank you for making the point even harder... :thumbsup:


----------



## KAP (Feb 19, 2011)

Californiadecks said:


> It's against Cali law to charge a surcharge.


You're almost there Cali... which means WHAT if you want to take credit cards?...


----------



## Calidecks (Nov 19, 2011)

KAP said:


> You're almost there Cali... which means WHAT if you want to take credit cards?...


Means I pay nothing more than store price to use my rewards card.


----------



## KAP (Feb 19, 2011)

Californiadecks said:


> Means I pay nothing more than store price to use my rewards card.


We're not talking retail... try again...


----------



## Calidecks (Nov 19, 2011)

KAP said:


> We're not talking retail... try again...


I am.


----------



## Calidecks (Nov 19, 2011)

Californiadecks said:


> It cost the merchant the 2 or 3 percent.
> 
> If I buy socks from macy's I'm paying the same whether it's cash or card.


And here's where I've already answered that.


----------



## Fence & Deck (Jan 23, 2006)

I use Square. No fees, no committment. Why? Several reasons:
-convennience: I can take the charge over the phone from a client. I don't have to run out to the house to pick up a cheque, nor do I have to get the crew to pick up the cheque.
-discounts: I have begun to add 5% to all my prices. As soon as a client mentions discount from my quoted price, I tell them I'll give them a 5% discount if they pay strictly by cheque or cash. You'd be surprised how many still pay by card.
Last year I put through over $200,000 on credit card charges.
-sets me apart. Some competitors don't take cards. When I offer to take them it sometimes closes the deal.
Some of you might not agree, but this works for me and fits in to my business model.
Someone mentioned they have no interest no payment plans. I had that for a few years, but the finance company took 6% of the gross amount. Eventually I stopped.


----------



## KAP (Feb 19, 2011)

Californiadecks said:


> I am.


The thread is about contractors taking credit cards not retail merchants... perhaps if you want to discuss retail, a homeowners or retail merchant site might be more appropriate...

.


----------



## Calidecks (Nov 19, 2011)

Didn't take long. :laughing:


----------



## TNTRenovate (Aug 19, 2010)

I have the ability through square but have only run one card in the last 3 years. Weird how when customers ask if I take CC's and I tell them yes, but it will cost them an extra 3% they find their checkbooks really fast. They just want the mileage and I'm not in the habit of paying for other peoples airfare.


----------



## KAP (Feb 19, 2011)

Californiadecks said:


> Didn't take long. :laughing:





Californiadecks said:


> But it's still on topic. *So if dorthy doesn't like it he can move on.*


As I said... irony... :thumbsup:


----------



## KAP (Feb 19, 2011)

TNTSERVICES said:


> I have the ability through square but have only run one card in the last 3 years. Weird how when customers ask if I take CC's and I tell them yes, but it will cost them an extra 3% they find their checkbooks really fast. They just want the mileage and I'm not in the habit of paying for other peoples airfare.


:thumbsup:


----------



## TNTRenovate (Aug 19, 2010)

dsconstructs said:


> Gotta be careful with the convenience fee. A set fee is legal, while charging a percentage isn't.


Only in a handful of states. According to what I read surcharges/convenience fees are illegal in 10 states, one being Commifornia. 

And when it is legal the law is you cannot impose a fee more than 4% of the total. So if your fee is $1 and their charge is $15 your set fee is illegal.


----------



## TNTRenovate (Aug 19, 2010)

JR Shepstone said:


> Correct me if I'm wrong, but if a customer pays with a CC for a $10,000 project, and the contractor tacks on the, say, 3% to cover the CC company's fee, isn't the CC company charging the contractor based on the $10,300 swipe? Which now brings the total to $10,609. So now the contractors owes an extra $309 anyway?


That's why you charge the max, 4%, allowable by law. Then you are ahead.


----------



## Calidecks (Nov 19, 2011)

TNTSERVICES said:


> I have the ability through square but have only run one card in the last 3 years. Weird how when customers ask if I take CC's and I tell them yes, but it will cost them an extra 3% they find their checkbooks really fast. They just want the mileage and I'm not in the habit of paying for other peoples airfare.


Not in Cali. There are 10 states that is not allowed, 10 states where prohibited: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. They can either not accept the card or not charge to use it.


----------



## TNTRenovate (Aug 19, 2010)

KAP said:


> Let me re-phrase... hypocrisy on display at it's finest... but there's no counting for integrity right Cali?... :whistling
> 
> Banks ALWAYS win the math game... they've convinced a lot of people to simply give up money they don't have to with the mirage of "rewards" that the customer is actually paying for...
> 
> .


I buy $200 worth of merch at Macy's on my Macy's card. At the end of the month I pay the $200 off, thus playing off my account. There is no interest on balances paid off within 30 days of purchase. So how am I not ahead? The merchant paid the fee, not me. Now I have mileage, a paid off credit card and good credit history.

That's what Michael Scott would call a WIN-WIN-WIN situation.


----------



## TNTRenovate (Aug 19, 2010)

Californiadecks said:


> Not in Cali. There are 10 states that is not allowed, 10 states where prohibited: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas. They can either not accept the card or not charge to use it.


Are you having a hard time reading what I wrote again? That's exactly what I said.

" According to what I read surcharges/convenience fees are *illegal* in *10 states*, one being *Commifornia.* "


----------



## Calidecks (Nov 19, 2011)

TNTSERVICES said:


> Are you having a hard time reading what I wrote again? That's exactly what I said.
> 
> " According to what I read surcharges/convenience fees are *illegal* in *10 states*, one being *Commifornia.* "


Thought I'd post all the other commie States. Which I was writing before the page refreshed and could see your post. Relax.


----------



## TNTRenovate (Aug 19, 2010)

Californiadecks said:


> Thought I'd post all the other commie States. Which I was writing before the page refreshed and could see your post. Relax.


You are the one ready to pounce after your KAP exchange. I am relaxed, so relaxed I am one with my chair and Jim Beam! :thumbup:


----------



## Calidecks (Nov 19, 2011)

TNTSERVICES said:


> Are you having a hard time reading what I wrote again? That's exactly what I said.
> 
> " According to what I read surcharges/convenience fees are *illegal* in *10 states*, one being *Commifornia.* "


You must feel pretty good about your state finally not being included in a regulation. Although I was surprised to see Texas in the mix.


----------



## TNTRenovate (Aug 19, 2010)

Californiadecks said:


> You must feel pretty good about your state finally not being included in a regulation. Although I was surprised to see Texas in the mix.


I was too, but it had Democrat governors for years.


----------



## Calidecks (Nov 19, 2011)

TNTSERVICES said:


> I was too, but it had Democrat governors for years.


That law was enacted in 2013 (?). I think it had to do with the commies Dodd/Frank.


----------



## KAP (Feb 19, 2011)

TNTSERVICES said:


> I buy $200 worth of merch at Macy's on my Macy's card. At the end of the month I pay the $200 off, thus playing off my account. *There is no interest on balances paid off within 30 days of purchase. So how am I not ahead? The merchant paid the fee, not me.* Now I have mileage, a paid off credit card and good credit history.
> 
> That's what Michael Scott would call a WIN-WIN-WIN situation.
> 
> https://www.youtube.com/watch?v=WPYz-bvypmU


You're not ahead because the bank used Macy's to get the money from you UPFRONT... you paid the merchant... it doesn't matter if you paid your balance in full... the bank still got paid... the merchant gave them a cut of what they collected from you... businesses pass along costs to customers... always have and always will... just like you do if you accept the credit card... it's another reason why when people say charge businesses more taxes, they don't realize they are actually calling for higher taxes for themselves to use those same services...

How do you think banks PAY for points and rewards programs? Out of the goodness of their hearts?... :no:

That said, you'd be surprised how many of your regular suppliers (not to mention small businesses) will knock the fee off if you pay them directly... 

If you think about it, what do they care... why would they not WANT to take care of a regular customer rather than hand over money to a bank?...

.


----------



## KAP (Feb 19, 2011)

As I said at the beginning... 



KAP said:


> I can understand the argument for small ticket items $1000 and under though...


In a retail environment, it's hard to avoid, but if I'm going to order $5-$10K of material from a supplier, why WOULDN'T you give them a check or cash to save hundreds?...


----------



## Leo G (May 12, 2005)

Californiadecks said:


> Didn't take long. :laughing:


KAPaway


----------



## KennMacMoragh (Sep 16, 2008)

dsconstructs said:


> Gotta be careful with the convenience fee. A set fee is legal, while charging a percentage isn't.


I saw this on the internet
"Surcharges are also illegal in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas."

I'm pretty sure it is legal in Washington to charge a percentage, I see it done all the time. 


Looks like Square charges 2.75% if I send them an invoice and they have the app. It goes up to 3.5% if they don't have the app and I enter their credit card number manually. Guess I better tell them to download the app if they want to save that 0.75%.


----------



## TNTRenovate (Aug 19, 2010)

KennMacMoragh said:


> I saw this on the internet
> "Surcharges are also illegal in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas."
> 
> I'm pretty sure it is legal in Washington to charge a percentage, I see it done all the time.
> ...


It is only illegal in those 10 states. You are allowed to charge up to 4% of the total as a surcharge.


----------



## JR Shepstone (Jul 14, 2011)

Californiadecks said:


> Didn't take long. :laughing:


Now where's the fun in that?


----------



## JR Shepstone (Jul 14, 2011)

So who actually takes credit cards?


----------



## Stephen H (Feb 18, 2011)

JR Shepstone said:


> So who actually takes credit cards?


 Back on topic eh?
we take credit cards---and are happy to do so.
My oldest son set us up with the square device---and eventually was even able to train an old fogey like me to use it.

actually just got our Year at a glance report from square
We average $6500 /month in sales that go through square- frankly I wish they ALL did.
typically $1000 to $2000 at a time--- but we have had customers in the past put $10,000 down----and pay the remaining $10,000 balance due upon completion a week or so later--- both payments on square.

I don't get bent out of shape about the less than 3% charge---- frankly on the smaller $1000 to $2000 charges--- it would cost me more in time/agravation/inconvienience to wait on the check,play the whole"the check is in the mail" game and then eventually take the check to the bank.......
I wish they ALL payed by square
in fact...... As I sit here--- I figure I would rather have $970 TODAY--- rather than wait 4-5 weeks to have $1000---- I need to think about this------- I may consider offering a 2% discount to people who pay by square---- it would certainly make my life easier....... Got to think about that a bit....
stephen


----------



## 66 Shelby (Jan 11, 2009)

KAP said:


> You're not ahead because the bank used Macy's to get the money from you UPFRONT... you paid the merchant... it doesn't matter if you paid your balance in full... the bank still got paid... the merchant gave them a cut of what they collected from you... businesses pass along costs to customers... always have and always will... just like you do if you accept the credit card... it's another reason why when people say charge businesses more taxes, they don't realize they are actually calling for higher taxes for themselves to use those same services...
> 
> How do you think banks PAY for points and rewards programs? Out of the goodness of their hearts?... :no:
> 
> ...


Here's where your logic is flawed - You buy something with a CC and get your item immediately. Bank sends you a bill 30 days later. You pay the bill. Now you've kept YOUR money in YOUR pocket (or bank) for 30 days, potentially earning interest. How is that a bad thing?

AND - Surcharges on CC transactions are legal in my state, according to my CPA and attorney.


----------



## Philament (Dec 9, 2014)

I was interested in taking credit cards last year for similar reasons that Stephen H mentions above. Lots of smaller jobs and the hassle of having to go back, pick up a cheque, go to the bank, wait 5 days....was just way too much overhead compared to the 2-3% that I would be charged. 
I was dissuaded from it when I started to look into the new EMV (chip & pin) requirements in Canada though. They were (are) switching over so that all the liability falls on the merchant if you don't accept transactions with a chip & pin reader (i.e. swipe and sign). There didn't seem to be any low cost mobile chip and pin readers available, so I just canned the idea. Might look into it again this year though to see where the technology is at.


----------

