# credit cards for payment?



## J.M. (Nov 25, 2010)

Does any body accept credit cards for payment? I am being asked more and more about that. I had 4 clients ask me if they could put there down payment on a credit card in past month. How does it work? What do I do to get started? I am thinking it can only help.


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## angus242 (Oct 20, 2007)

Check this out:
http://www.contractortalk.com/f16/credit-cards-106618/


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## TNTRenovate (Aug 19, 2010)

I used to, but it's not worth it. Surcharges and transaction fees, not for me. Plus it's just one more thing to check and make sure it was deposited to my account. At least with a cash or a check I can see it go in.


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## Mr Fix It (Mar 5, 2011)

*Credit cards for payments*

I have to say that you'll be killing yourself. I would look out, all you are doing is making the banks richer, and the consumer more poor. They take up to 3-4% depending on the type of card and then you have to pay for each swipe or transaction on top of your monthly fees. I definitely would reconsider and make sure how much you would lose from your pocket adding all expenses. Another think, you should worry about if the customer disputes a charge, then credit card company will collect the money back out of your account even quicker then they deposit it. Good luck


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## Oconomowoc (Oct 13, 2011)

3% per $1000 is only $30. 15% of my customers use credit. If I lost 15% of my customers I suddenly wouldn't care about $30. 

Most businesses take credit cards for a reason, and its not because they lose money its because it makes sense. 

Think pennies get pennies. Think dollars get dollars.


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## TNTRenovate (Aug 19, 2010)

Oconomowoc said:


> 3% per $1000 is only $30. 15% of my customers use credit. If I lost 15% of my customers I suddenly wouldn't care about $30.
> 
> Most businesses take credit cards for a reason, and its not because they lose money its because it makes sense.
> 
> Think pennies get pennies. Think dollars get dollars.


I think that taking cc for a services industry isn't a bad idea. Most aren't planning on their Hot Water Heater going out, so it makes sense to offer that as an option. As a GC I have never lost a single customer because I don't accept credit cards. 95% of my customers don't even ask and the other 5% understand why I don't.

I think it's a lot like marketing, what makes sense for one trade may not make sense for another.


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## Oconomowoc (Oct 13, 2011)

Yeah, it's definitely not for everybody.


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## Winchester (Jun 29, 2008)

I sometimes have people ask me on $15-30k jobs if I take credit card 

They also understand why I don't, and they always ask at contract signing, so it's not like I'm losing work because of it.


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## BrandConst (May 9, 2011)

TNTSERVICES said:


> I used to, but it's not worth it. Surcharges and transaction fees, not for me. Plus it's just one more thing to check and make sure it was deposited to my account. At least with a cash or a check I can see it go in.


IMO...Thinking like this will put you out of business QUICKLY, people are carrying less cash on them these days, writing less checks and paying there bills online. The old days of cash or check are about to be gone and you need to catch up on them. Now days people want to put purchases on a credit card, whatever the reason may be, to get air miles or to finance. Charge the customer a fee for using cc's.


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## BamBamm5144 (Jul 12, 2008)

TNTSERVICES said:


> I think that taking cc for a services industry isn't a bad idea. Most aren't planning on their Hot Water Heater going out, so it makes sense to offer that as an option. As a GC I have never lost a single customer because I don't accept credit cards. 95% of my customers don't even ask and the other 5% understand why I don't.
> 
> I think it's a lot like marketing, what makes sense for one trade may not make sense for another.


If you think you haven't lost a single customer because you don't take credit cards, I'm sure they just didn't tell you. I've had people use credit cards for 18k and 13k as well as various other ones. Now at the end of the year, people have financed over 200k. The lady for 13k told me I was the most expensive by 1500 but none of the others took credit cards so that was one reason why she chose us.

About the fees? They don't cost YOU anything. They cost the consumer. If you aren't able to add in 3% and sell the job, you should stay working physically. You should see the percentage I have to add in for the 60 month loans.


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## flashheatingand (May 3, 2008)

Beware of whom you choose as your credit card processsing company. I had UNITED BANK CARD, and had several hidden fees come up that were questionable. Also, they took out $850 from my account and have yet returned the money.

The problem with the credit card thing is that these companies have access to your money, and can withdraw from it with or without your knowledge or approval.


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## BrandConst (May 9, 2011)

To add to what I previously posted, credit card fees are a cost of doing business. Let's say for example you have this job:

50% m/u
$30,000 contract
-20,000 cost

$10,000 PROFIT

Now tell me you wouldn't pay $900 to profit $9,100

or for a 30% m/u ($26,000) you would pay $780 to profit $5,220

People that don't take credit cards are those who will be lost with technology and basically be there own stumbling stone on trying to grow as a business.


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## flashheatingand (May 3, 2008)

The rewards cc's are a real evil empire. The merchant fees to process those cards are double, and the interest on those cards are higher. They are making millions of dollars and give us a little kibble for a reward.... c'mon.

Did a job for 4k, customer paid with a cc, and my cost to process went from $80 to $160. As business owners, we should not use reward cards for our personal use, and spread the word about the manipulative nature of those things.


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## BrandConst (May 9, 2011)

Try google merchant, I use it;
Monthly Sales Through Google CheckoutFees Per TransactionLess than $3,000 2.9% + $0.30$
3,000 - $9,999.99 2.5% + $0.30
$10,000 - $99,999.99 2.2% + $0.30
$100,000 or more 1.9% + $0.30


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## flashheatingand (May 3, 2008)

Brand, I respectfully disagree with your take. I say, stick to the basics, and you will stay in business despite all these crazy changes.

Do a decent job at a decent price, and be a decent person, and you will always be in business. Remember all the dot com millionaires? Where are they now (in general)? Look at the banks, they had to get bailed out because they they did things that were fundamentally wrong.


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## pinwheel (Dec 7, 2009)

BamBamm5144 said:


> If you think you haven't lost a single customer because you don't take credit cards, I'm sure they just didn't tell you.


I had a merchant account for our sister company that was strictly retail. In 7 years, I had one customer want to pay by CC. I said sure, I'll just add the 3% charge that it costs me to the bill. They wrote a check instead. When we quit doing the retail business, I canceled my merchant account. I'm not missing anything by not taking CC's.


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## BrandConst (May 9, 2011)

flashheatingand said:


> Brand, I respectfully disagree with your take. I say, stick to the basics, and you will stay in business despite all these crazy changes.
> 
> Do a decent job at a decent price, and be a decent person, and you will always be in business. Remember all the dot com millionaires? Where are they now (in general)? Look at the banks, they had to get bailed out because they they did things that were fundamentally wrong.


I'm not saying you won't stay in business but your definately not looking to grow it. For instance, lets say my a/c just went out after I just paid for my kids college tuition and I was pinched for cash, I would much rather pay with a credit card rather than draining my account even more and then paying it off later. If you came to my house and gave me a bid for 5,300 to fix and your competitor came in and said 5,500, who do you think the guy strapped for cash is going to go with? One could only assume the guy who takes credit card.

I never said you wouldnt stay in business, the old days are over. Yes, people pay with cash and check still but more and more are leaning towards credit cards.

A simple solution to this is to account for the credit card fees in your overall price and offer a cash or check discount of 3%.


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## flashheatingand (May 3, 2008)

Yeah, I hear you. I did accept cc's, and I got burned. I can't argue that cash and checks are becoming extinct...unfortunately. 

I don't like the idea that someone can put their mitts in my account and take my money with or without my approval. Maybe there is a better way to accept cc's. Nevertheless, I hope my post gives others in our situation a pre-cautionary tale, and they can make an educated decision, factoring in the pros and cons.


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## BamBamm5144 (Jul 12, 2008)

pinwheel said:


> I had a merchant account for our sister company that was strictly retail. In 7 years, I had one customer want to pay by CC.* I said sure, I'll just add the 3% charge that it costs me to the bill.* They wrote a check instead. When we quit doing the retail business, I canceled my merchant account. I'm not missing anything by not taking CC's.


Which that is something you cannot do.

My paying options are written out like this:

_Payment Option 1: Our Zero Interest Loan. 60 Monthly Payments of roughly $ totaling $ .*
Payment Option 2: A 5% Discount & 365 Days Same as Cash Loan. Project cost will total $ .*
Payment Option 3: Pay with Cash, Check or Credit Card upon completion and receive a 10% discount. The total project cost will equal $ .*_

Just as with everything else, things work different with different people.

I did a few jobs this year where people had their homes for sale, had a buyer and they needed a new roof. Being able to offer no payments and no interest for one year really helped close those deals.


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## Oconomowoc (Oct 13, 2011)

This is not a black & white discussion, if credit cards fit your business model then by all means make use of it and use marketing to maximize your return. If not you just need to adapt to a different environment.

Looking at statistics its obvious using credit is a growing trend that shows no sign of slowing down. A simple Google search will clearly show the trend because its a closely watched economic component of America. Its not new, businesses have been receiving credit cards for a very long time it's just that in the construction industry its a fairly recent trend.....construction is always behind the curve.

On a personal note its false to think using credit cards isn't an advantage. To use it correctly, as a revenue creation tool, it needs to be marketed appropriately. The problem lies with the owners inability to correctly market the tool not with the tool itself.

When a potential customer calls me I can use a credit card as a tool to seal the deal against other competitors who don't offer it. 

I can also generate leads if I market the tool correctly.

During a project if the HO wants to change a product and upgrade to a more expensive fixture I can also make a change order and get paid immediately and the customer likes it because it doesn't change his/her immediate cash flow. It also makes it easier to offer change orders.

Fact is consumers in America are in love with credit cards, especially during a recession. To me and others this is beyond obvious. Just because a company didn't notice a difference in increased revenue doesn't mean credit is bad. On the contrary, it means the business didn't understand how to market it.

Outside of construction the rest of the world relies heavily on credit cards, some businesses would go out of business if they stopped taking them.

If your a business who doesn't take credit that doesn't make you a bad business. What it does do however is it puts up a barrier to potential income.


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## BrandConst (May 9, 2011)

Wait...is oconmowoc the old mike plumber "turd burglar" that lost his account?


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## TNTRenovate (Aug 19, 2010)

BrandConst said:


> Wait...is oconmowoc the old mike plumber "turd burglar" that lost his account?


You catch on quick. Where were you for his welcome back thread? That was a good one! Love Ya Mike!


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## BrandConst (May 9, 2011)

Been too damn busy! December is a much needed break. I've gotta look up the old turd burglar welcome back thread...


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## TNTRenovate (Aug 19, 2010)

I think that I was in a bad mood that day.


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## Oconomowoc (Oct 13, 2011)

TNTSERVICES said:


> I think that I was in a bad mood that day.


Naaa. I like you. You stand tough on principal and back up your theories with personal experience. People like you I have a lot of respect for because your not afraid of a good discussion even of your the lone wolf. Whats not to respect about that? 

Everybody gets in a bad mood, its the nature of what we do. What I hate most is when a thread has differing opinions and people take things personally. That's just gay. :laughing:

Mike


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## TNTRenovate (Aug 19, 2010)

Oconomowoc said:


> Naaa. I like you. You stand tough on principal and back up your theories with personal experience. People like you I have a lot of respect for because your not afraid of a good discussion even of your the lone wolf. Whats not to respect about that?
> 
> Everybody gets in a bad mood, its the nature of what we do. What I hate most is when a thread has differing opinions and people take things personally. That's just gay. :laughing:
> 
> Mike


Did you call me gay? Report button pressed! :laughing::laughing::laughing:

And not that there's anything wrong with that.


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## ohiohomedoctor (Dec 26, 2010)

TNTSERVICES said:


> Did you call me gay? Report button pressed! :laughing::laughing::laughing:
> 
> And not that there's anything wrong with that.


I got him too... :whistling:


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## Oconomowoc (Oct 13, 2011)

You mean like flaming? Ahhh, no. But we are willing to learn....... (from the movie Stripes)

Had to say it.


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## Oconomowoc (Oct 13, 2011)

BrandConst said:


> Wait...is oconmowoc the old mike plumber "turd burglar" that lost his account?


For the record I didn't lose my account, I asked for permission to change it and it was granted. You should of seen the pile of paperwork it took.


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## TNTRenovate (Aug 19, 2010)




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## ohiohomedoctor (Dec 26, 2010)

BrandConst said:


> Wait...is oconmowoc the old mike plumber "turd burglar" that lost his account?


Yaaaoouch...


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## Oconomowoc (Oct 13, 2011)

TNTSERVICES said:


> <a href="http://www.youtube.com/watch?v=_L82jlR-37k">YouTube Link</a>


Would they send us some place special? 

Absolute classic of classic comedies


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## BrandConst (May 9, 2011)

Oconomowoc said:


> For the record I didn't lose my account, I asked for permission to change it and it was granted. You should of seen the pile of paperwork it took.


Are you hiding from your girlfriend redliz or what?


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## Stephen H (Feb 18, 2011)

I don't take credit cards---------- about 12 years ago I accepted them for a little over a year------in that time exactly 2 people paid with credit cards and BOTH of the payments were effed up-so I discontinued credit card payments.

what I have noticed is that 25 years ago it was not at all unusual for me to be paid in cash-actual greenbacks. Literally the second job I did in business--- I remember the older gentleman slowly counting out the greenbacks for a new roof in $5 & $10 bills.

There was a period of about 10 years or so when I think almost every roof we did was paid for with a home equitly line of credit.

THAT ended about 2008/2009 and I don't think I saw another home equity line of credit check untill 2011.

I get asked about accepting credit cards every 3-4 weeks. 

Does my NOT accepting credit cards have an effect on my business?- It probally does. I get asked every 3-4 weeks about accepting credit cards-and they ask during the proposal presentation. Some buy anyway-some don't. I have never had anyone accept and then back out because we don't take cards----------but I am sure I have been screened out in advance of the proposal being accepted because we DON'T accept them.

Guess what?- that is fine with me.

I have a certain target customer. They have owned their home for years- they intend to own their home for years more. They are probably in their 50's/60's. They are the kind of people who do their due diligence- maybe they have been burned by contractors in the past, but NOW they pay attention and do their homework. They have significant financial assets. Their homes were built in the 1910's-1920's. Some of them winter in Florida or Arizona.

BamBaMM mentioned a particular deal regaurding a home being sold which needed a roof.- I am glad he mentioned that because that's an excellent example of when Credit Card payments might be an advantage- and with his business model he SHOULD take them---------------------- but THAT situation described is EXACTLY the type of deal I want to avoid- I actively DISCOURAGE that type of customer- I don't want to be anywhere near that type of deal.

You gotta know your market. I want customers to choose us because of our work- I want customers who value what WE do so much they are willing to wait months and months for us to get to their project because we are specialists

I don't want customers choosing us because we offer financing- if that were to happen than I would know we had drifted into providing a commodity instead of a offering specialty.

Just my opinion and very best wishes to all,
stephen


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## Oconomowoc (Oct 13, 2011)

BrandConst said:


> Are you hiding from your girlfriend redliz or what?


She has a girlfriend who lives down the street from me.


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## TNTRenovate (Aug 19, 2010)

Oconomowoc said:


> Would they send us some place special?
> 
> Absolute classic of classic comedies


Yeah, one of those that never gets boring and is always a gut buster.


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## BrandConst (May 9, 2011)

Stephen H said:


> I don't take credit cards---------- about 12 years ago I accepted them for a little over a year------in that time exactly 2 people paid with credit cards and BOTH of the payments were effed up-so I discontinued credit card payments.
> 
> what I have noticed is that 25 years ago it was not at all unusual for me to be paid in cash-actual greenbacks. Literally the second job I did in business--- I remember the older gentleman slowly counting out the greenbacks for a new roof in $5 & $10 bills.
> 
> ...


Ohh right, I almost forgot what this thread was about! Got lost with Mike and Redliz for the moment


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## BrandConst (May 9, 2011)

Oconomowoc said:


> She has a girlfriend who lives down the street from me.


Lucky you! :thumbup: So is it your wife? :whistling


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## Oconomowoc (Oct 13, 2011)

BrandConst said:


> Lucky you! :thumbup: So is it your wife? :whistling


Didn't ask and don't want to know. :laughing:


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## flashheatingand (May 3, 2008)

Back to the credit card thing: If one is contemplating a credit card processing. The dispute thing is certainly something to consider. That would stink, to think you collected $1,000 or whatever, and have that taken out of your account after the money has been spent.

Credit cards are a force to reckoned with. Right now, I am on the "no" side, although I understand why others go with the flow. I just like the op and others who may be in the same boat, have as many facts brought to them, and let them decide..... Before signing the sheets of papers with a lot of fancy words.


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## Oconomowoc (Oct 13, 2011)

flashheatingand said:


> Back to the credit card thing: If one is contemplating a credit card processing. The dispute thing is certainly something to consider. That would stink, to think you collected $1,000 or whatever, and have that taken out of your account after the money has been spent.
> 
> Credit cards are a force to reckoned with. Right now, I am on the "no" side, although I understand why others go with the flow. I just like the op and others who may be in the same boat, have as many facts brought to them, and let them decide..... Before signing the sheets of papers with a lot of fancy words.


The first question a business should ask is "will this benefit my business in the marketplace"


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## flashheatingand (May 3, 2008)

Yes, I agree. But, they need to have all facts presented. The positives is that they provide an alternative outlet for the customer to pay the bill. The cost of this service, well that is a judgment call. The negative is that you are giving permission for someone to put their hand in the kitty, at their discretion.

Before signing papers, do a on-line research of the card processing company. The company that I used was United Bank Card. I did a little research after the fact. They had numerous complaints. Just some mistakes that I made, and hopefully others can learn from them.


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## BamBamm5144 (Jul 12, 2008)

You make it sound like it is very easy for a customer to dispute a charge and have it put back in their account.


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## ATH (Feb 14, 2006)

We accept credit cards. Though most of our customers pay by check, there are a few that like the convenience a CC offers. I know that at least one of our customers has done work she did not have the money for at the time because she could use the CC to "finance" it.

We have our merchant account through the same bank as our business checking. There could be cheaper processors out there, but given the stories here about hidden fees, etc. (which we have never seen), I think we chose wisely. We pay a monthly maintenance fee and a percentage of each transaction. We don't pay a per-transaction fee.

Have we gotten jobs because we accept CCs? I don't know. No one has ever given us that impression.

In more than five years, we have not had a chargeback.

Now to address a few objections:

1. Limitations. We do not take CCs for downpayments. Our downpayment nearly always covers all materials and such. We want the client to have some "skin in the game" and don't want them to be able to dispute the entire job cost.

2. Chargebacks. If you are truly worried about the CC processor being able to remove chargeback amounts from your account, I have heard it suggested that you can open a seperate account so the CC processor doesn't have access to your entire business checking account.

3. Costs. We do not charge a client extra for using a CC, nor do we offer a "discount" for paying by check/cash/etc. We keep track of how much we spend on CC fees. Each year, it gets estimated as a line item in our budget and used to help calculate our markup. Therefore, every client pays a little whether they use a CC to pay or not. Could we get surprised if a lot more clients decide to pay by CC? Yep. If it really got bad, we' have to adjust our markup mid-year.

4. Other. We cannot verify if we have gotten more clients or larger jobs because we accept credit cards. We do believe it makes us look more professional than either those who don't or those who use a service like PayPal to accomplish the same thing (how would it look if the fancy restaurant or your doctor didn't accept credit cards or said "send payment to our PayPal account?").

Bottom line: This is an individual business decision. Each business owner has to weigh all the options and decide whether to try it or not (there is nothing stopping you from giving it a try for a year). I would not be so bold as to suggest that the decision at which we have arrived is the one and only correct decision.


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## BrandConst (May 9, 2011)

BamBamm5144 said:


> You make it sound like it is very easy for a customer to dispute a charge and have it put back in their account.


I've never had the problem. *IMO*, it's a no brainer that service companies like a/c & heating should offer credit card payments for the simple fact of the unexpected. Some folks live month to month and have a credit card for emergencies only. A cooling and heating system going out is an emergency.


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## Stephen H (Feb 18, 2011)

BrandConst said:


> I've never had the problem. *IMO*, it's a no brainer that service companies like a/c & heating should offer credit card payments for the simple fact of the unexpected. Some folks live month to month and have a credit card for emergencies only. A cooling and heating system going out is an emergency.


 I agree- in some service fields- plumbing, HVAC, appliance repair, garage door service, perhaps even carpet cleaning and so forth- absolute no brainer- I would definitely accept credit cards.

in those businesses you would be handling many,many charges and they would all be comparatively little- so the occasional chargeback would not be a big deal

HOWEVER- to comment on BamBamms question- I think it IS a pretty easy thing for the consumer to initiate the chargeback.

Early in 2010 I bought a laddervator. No where local carried the brand I wanted by I did some research and bought one on-line. Long story short- we weren't happy with the machine- could NEVER get it adjusted to work properly- it set up fine- just could never get it properly adjusted AND it came with no directions and no manual

called the company we bought it from- they told us- in essence "pound sand -----that's the manufactureres problem"
called the company that MADE the machine, they ALSO said, in effect"pound sand---that's the distributors problem"

so I called the credit card company, who replied--------------------------" they said WHAT?"--- within minutes the credit card company had the distributor on the phone with me making arrangements to come back and pick up the first machine and bring me a second machine WITH manuals and directions

the credit card company had the juice to make this happen( and I am guessing the distributor had had this happen before which was why they followed up on the credit card companies call so promptly)

As a business person I have no intention of allowing a 3rd party like a credit card company to have this kind of juice over my company when dealing with ,say, an $18,000 roof

would I allow them influence over the occasional $200 garage door service call?- sure, why not?

BTW- someone mentioned restraunts.- In my city the place to get THE BEST steak in town and THE BEST martini accepts cash and checks only, no credit cards. The parking lot is FULL every night.

we have a major golf tourney here every year and the pro golfers have eaten there for decades. It's a very old school and flourishing business--and accepts no credit cards. my neighbor tends bar their- says the average tab for 2 is over $300, cash PLUS tip-and people beat a path to the door.

Stephen


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## EthanB (Sep 28, 2011)

BamBamm5144 said:


> You make it sound like it is very easy for a customer to dispute a charge and have it put back in their account.


Having had this happen to me several times while running a retail establishment I feel fairly confident saying it is too easy for a customer to dispute a charge. YOU are at the mercy of THEIR cc company. Many people on here use Paypal to process cards and their policy is fairly typical so I'll post it here highlighting the important bits.



> Here's a quick overview of the chargeback process:
> 
> 
> The buyer requests a chargeback from their credit card company.
> ...





> What to do if you receive a chargeback:
> 
> Log in to your PayPal account.
> Go to the Resolution Center.
> ...


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## BamBamm5144 (Jul 12, 2008)

Well, I know it wasn't too easy for me to dispute a charge that I had.

Why do you worry about a dispute anyways? What reason would anyone do that?

So what if they do dispute it? You just say OKAY! I will be on my way then? No, you show the paper work saying that the job was completed to their standards and its false dispute. You get a lawyer involved. After the charge is reversed, you send invoices for money because like your contract says "any credit card charges that are falsely disputed will result in a 10% charge of said charge card amount".

They (the disputer) can also get in deep doo-doo from my understanding for falsely doing so. It was a hassle for me to dispute my stupid little $86.00 charge that by the end of it, I spent more money fighting it.

P.S - Don't use PayPal - Use a real charge card provider that is through your local bank so you establish a relationship with the local representative.


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## SPCarpentry (Feb 12, 2007)

BrandConst said:


> Try google merchant, I use it;
> Monthly Sales Through Google CheckoutFees Per TransactionLess than $3,000 2.9% + $0.30$
> 3,000 - $9,999.99 2.5% + $0.30
> $10,000 - $99,999.99 2.2% + $0.30
> $100,000 or more 1.9% + $0.30


Deleted my thought :no:


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## Satman40 (Mar 14, 2011)

Take the CC payments, and add a 3% fee most guys want the air miles, they even pay property taxes that way and they also pay the fees....

When files the guy files bankruptcy, you have already been paid...

Limit your liabilities...


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## TNTRenovate (Aug 19, 2010)

Satman40 said:


> Take the CC payments, and add a 3% fee most guys want the air miles, they even pay property taxes that way and they also pay the fees....
> 
> When files the guy files bankruptcy, you have already been paid...
> 
> Limit your liabilities...


Again, for those that don't bother reading the entire thread, it is illegal to add a fee.


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## Satman40 (Mar 14, 2011)

TNTSERVICES said:


> Again, for those that don't bother reading the entire thread, it is illegal to add a fee.


And yet when you pay your property taxes or income taxes with a credit card they add a fee...so if the government allow it, them it must be legal...


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## TNTRenovate (Aug 19, 2010)

Satman40 said:


> And yet when you pay your property taxes or income taxes with a credit card they add a fee...so if the government allow it, them it must be legal...


You are not purchasing anything, you are paying your taxes. You owe X in taxes, not x minus processing fees. If the gov't paid the processing fees out of your tax bill then you wouldn't be paying your full tax bill.

And BTW: The Federal Truth in Lending Act states: 167, (2) “No seller in any sales transaction may impose a surcharge on a cardholder who elects to use a credit card in lieu of payment by cash, check, or similar means.”


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## XLARGEX (Sep 20, 2011)

ATH said:


> We accept credit cards. Though most of our customers pay by check, there are a few that like the convenience a CC offers. I know that at least one of our customers has done work she did not have the money for at the time because she could use the CC to "finance" it.
> 
> We have our merchant account through the same bank as our business checking. There could be cheaper processors out there, but given the stories here about hidden fees, etc. (which we have never seen), I think we chose wisely. We pay a monthly maintenance fee and a percentage of each transaction. We don't pay a per-transaction fee.
> 
> ...


Not to sound like a jerk or anything, How can you tell a costumer they cant use a cc for the down payment but they can use it for the rest of the purchase ? Just wondering


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## ATH (Feb 14, 2006)

XLARGEX said:


> Not to sound like a jerk or anything, How can you tell a costumer they cant use a cc for the down payment but they can use it for the rest of the purchase ? Just wondering


Why not? I didn't read anything in my merchant account agreement that I can't do that. It is clearly spelled out in the contract they sign when they write the check for the down payment. No one has ever complained that they need to write a check for the down payment.

Why would you think there is something wrong about making this restriction on acceptance of a credit card?

I've seen businesses make a restriction that credit cards are only accepted for purchases above a particular amount. This practice, I think, goes against their merchant agreement, but they still seem to get away with it.


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## Satman40 (Mar 14, 2011)

Anytime a merchant uses a CC or a loan he is purchasing another persons money and paying a fee

CC allow us add on upsells, it insures of getting paid..and limits our liability...

We all make the same amount of money, it is our mistakes that cost us

1 or 2% is a cheap price for a paid in full bill that day

Even Lawyers and Physicians us it....


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## TNTRenovate (Aug 19, 2010)

Satman40 said:


> Anytime a merchant uses a CC or a loan he is purchasing another persons money and paying a fee
> 
> CC allow us add on upsells, it insures of getting paid..and limits our liability...
> 
> ...


I don't understand what you are trying to say. Any time a merchant uses a credit card or loan...what do you mean by merchant and uses?

If you need CC to make "up-sells" then you may want to rethink your sales pitch. While it is a tool to use, it isn't the answer to all of life's problems.

In the end, you can try and justify it all you want, but it's still illegal. You need to raise your rates and offer a cash discount. That way you aren't losing anything and you are operating a legal business.


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## BrandConst (May 9, 2011)

I think he meant customer.


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## Oconomowoc (Oct 13, 2011)

Speaking of everybody taking credit cards. This was just installed at a local gas station.


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## TNTRenovate (Aug 19, 2010)

Still some free air around here. But when you are contractor with a half dozen compressors you shouldn't have to worry.

Maybe I'll set up one on the drive and accept cash and check only! :laughing:


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