# Accepting Credit Cards



## CJKarl (Nov 21, 2006)

Any small outfits do this? I have been reluctant, just more paper/electronic office work for me.
I spoke to a gal that opened a shop downtown. I was asking her about her card swipe/readed hooked to her phone. Outfit called SQUARE, they take about 3% but handle everything and dump the funds right into your bank account. 
I only have one prospective customer that requested I accept CCs. The federal government. But if there are no charges other than when used, it may be worth it.


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## EC Craftsman (May 20, 2013)

I use square a half dozen times a year and I am a one man show. There are no extra fees other than what you've already learned of (the one time 3% or whatever it is). If you swipe a card they take a little less percentage than if you punch in the card numbers manually. 

The customers that do use it seem to like the idea for two reasons: earning points or of course. . . Paying for projects they don't have the cash for. I've even got a few people to upgrade (example from a concrete walk to a bluestone walk) because they can put the amount that is outside of their budget on the ol' magic plastic. 

No extra paperwork, and it saves me from taking a drive to pick up a deposit or payment. . . Sometimes.


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## EC Craftsman (May 20, 2013)

It takes all but 5 minutes to get it set up, and the only work you have to do is collect their card info and wait for the money. Real simple and straight forward


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## Bearded Wonder (Jan 21, 2011)

I was told that you can't add the 3% to the bill if they're paying with a card, but you can subtract 3% from it if they're paying cash. Is that accurate? Does it vary by state? 

I'm thinking of getting that Square going myself. I've had a couple customers ask if they could pay with credit card. Seems like it'd be a good thing to offer.


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## CJKarl (Nov 21, 2006)

I would imagine it would be illegal to add 3% after the fact. Just add the 3% into your bid to begin with. Or state the options. Job will cost $100 check or cash....or $103 CC.


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## fjn (Aug 17, 2011)

CJKarl said:


> I would imagine it would be illegal to add 3% after the fact. Just add the 3% into your bid to begin with. Or state the options. Job will cost $100 check or cash....or $103 CC.






A major city that I have had a mason contractor's license with for over 30 yrs. ( $100.oo annual renewal fee) switched to phone or on line renewal only several yrs.ago. Guess what,they tacked on an extra $ 6.00 bucks for c.c usage (which is the only way to renew ):blink::blink:


Go figure,it is probably against the rules but no one has challenged them over 6 bucks.


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## Tinstaafl (Jan 6, 2008)

fjn said:


> Go figure,it is probably against the rules but no one has challenged them over 6 bucks.


Often government entities have CC payments processed by a third party, and the fee is to cover that expense.

There's a good sized (and positive) thread about Square in the Business section:

http://www.contractortalk.com/f16/square-mobile-credit-card-processing-71617/


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## CompleteW&D (May 28, 2011)

Ours is set up on line. All I do is log in, manually enter the CC information and the funds are transferred to our bank account at the end of business that day. It costs us 2.2% per transaction and just a tad more for AMEX. No monthly fees or dubious extras.

It's called EASY PAY.


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## JBM (Mar 31, 2011)

I thought about it but decided that is a little bit ridiculous for the volume I do. If people have a CC they also have a check. I am setting up paypal invoices for snowplowing though.


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## carolinahandyma (Jan 6, 2006)

Many homeowners like using credit cards because of the many and various perks (hotel points, airline miles, cash back etc.) they get for using them. 

Square is good option as well as PayPal for accepting credit cards on the occasional basis.


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## fourcornerhome (Feb 19, 2008)

I know for a fact that I missed out on two nice jobs this year(over $10,000 each) because I don't take credit...Thinking hard about it now!


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## carolinahandyma (Jan 6, 2006)

fourcornerhome said:


> I know for a fact that I missed out on two nice jobs this year(over $10,000 each) because I don't take credit...Thinking hard about it now!


It' a pretty simple process to do either Square or PayPal. I would say that Square while charging slightly more, allows you to swipe a credit card using your smart phone. Not sure is PayPal allows that. With PayPal you email an invoice to the customer and they enter their cc information online.


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## We Fix Houses (Aug 15, 2007)

Let me make a plug for Intuit Go Payment. Intuit is in the financial business. They also have USA support and answer the phone in a few minutes. SQ - only email support. Fee's are the same for both I believe. I have used PayPal too. Its pretty good also. Intuit Go Payment is the swipe for a smart phone. You can key pad enter it too.

A word about Amex. I just spoke to Intuit this week. Had a glitch in my acct. I noticed an icon on my acct page to opt out of Amex. I asked why it was there. Cause with Amex the card holder can dispute for up to 1 year - rather than 90 days for the other cards. Just a heads up.


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## We Fix Houses (Aug 15, 2007)

Another thing about Go Payments - I don't know about this $20 month minimum maint fee. That's what it says on my acct. But I signed up for no monthly fee's. After about 6 months, I got an increase. Its now $4 per month for any month I use the service + 2.7% for the transaction amount.

So don't sign up for high fees if you don't need too.


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## Mr Latone (Jan 8, 2011)

CC payments are surely a convenience for the customer and should be given serious consideration. Please remember how it is being paid for though.

If you do not build it into your costs, let me plainly show you just how much it really costs.........

Suppose you contract for $10K and don't allow for the 3% or so. Your customer asks after the fact and you say sure.....

Contract looks like this
Total $10,000
Materials $4000
Labor $3000
Overhead $1000
Profit $2000
CC expense $300

OK. When it's all said and done the only place the CC fee can come from is your profit. So now you have reduced your profit from $2000 down to $1700 or cut it by 15%.

So if you don't account for it in advance, the card has cost you 15% instead of the 3% you were thinking.

Just something to make sure you have factored in.


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## dom-mas (Nov 26, 2011)

I was talking to a steel supplier that i don't do a lot of business with and I asked if he took debit because all I saw where the VISA and MasterCard signs on the wall. He said, oh yeah we take debit. He didn't care about the 3% what he had a problem with was paying EXTRA for the points cards. VISA and MC don't pay for those points, the guy accepting the CC does. This was just what he told me so take it with a grain of salt


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## bdoles (Sep 11, 2007)

I've used both Square and PayPals swiping services. No complaints on either of them. Both are about the same in %. I figure the 3% in all my estimates now. If the client uses a credit card, that's great. If they don't, that's even better. :thumbsup:

Just having the option of accepting credit cards is key in getting a job sometimes.


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## flashheatingand (May 3, 2008)

I signed up with Paypal. It's quick & simple simon. Just email an invoice to the customer, and they fill out their info. No paperwork, no special device, no need for a smart phone.


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## CompleteW&D (May 28, 2011)

dom-mas said:


> I was talking to a steel supplier that i don't do a lot of business with and I asked if he took debit because all I saw where the VISA and MasterCard signs on the wall. He said, oh yeah we take debit. *He didn't care about the 3% what he had a problem with was paying EXTRA for the points cards. VISA and MC don't pay for those points, the guy accepting the CC does. This was just what he told me so take it with a grain of salt*


It depends on the CC processor. I don't know about Square or Paypal which most are talking about here. But, with our service, it's a flat 2.2%. That's it.


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## EC Craftsman (May 20, 2013)

It's so easy and inexpensive. . . Why not just add it to your bag of tricks. I think having the ability to accept cards is a must. The largest majority of customers that have paid with a card know that it costs me to take that payment. . . And usually compensate with cash. That isn't something to rely on but many have been considerate of that extra expense without bringing it up.

Not to mention customers get a huge kick out of swiping their card and signing the iPad


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## CJKarl (Nov 21, 2006)

I've had PayPal for a while. Never used it


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## Roofcheck (Dec 27, 2011)

We just signed up for Rectangle. Ivan- talked us through it and its a snap. Goes in the next day- about 24 hours. We've used it on the last three sales and I know it helped ease the sale. 

We use the App and when not in service call it in. Pretty easy. 

Sure the worse it can be on $1,000 transaction is $40. Weigh that with the time and effort required tripping to the bank, or waiting for a check to arrive and still waiting for it to clear, or not to clear. 

I'd consider the ease worthy up to $200 fee/ $5,000 charge.


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## JBM (Mar 31, 2011)

I havnt used paypal yet, but when and if we send an invoice does the recipient have the option on their payment method or do they need to pay with paypal?


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## Rich D. (Oct 14, 2011)

Square aint sounding to bad to me...

Ok yea its an extra 3ish%.. but i feel being able to accept cards makes you look more professional and can help justify your higher prices than joe down the block in a truck taking only cash. 

Imo wipping out an ipad with a card swiper on it is pretty neat in the customers eyes too.

Start out by adding 5% to all your quotes. Tell your customers you accept all major brands of cards, and also if you pay by check or cash there is a 5% discount. Your not trying to cheat anyone, just passing on the card processing fees to the consumer. 

My dentist does it this way. Why cant i?


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## renov8r (Feb 16, 2013)

A friend of mine has started doing this a few minutes on the ago. I have no idea what the details are. I know some places here in my city, have a service charge if it's under 5 dollars. Some major outfitters have charges too. Which it usually a quarter or so never too much but your are told that there is a fee for it and you can decline if you like and then choose a different for of payment. 

I've had a few people ask me this year if I would accept credit card payment. I told them unfortunately I am not equipped with credit card at the moment. I did get the jobs, they were for 300 labor each. They ended up paying me cash because it was just day work and I didn't want them to issue me a cheque that would bounce and then I get the 45 dollar charge. However it is in my plans for the future because I have many customers who like to buy their own materials or at least expensive items because they want to use the credit card because they can pay it off in a year or they have some sort of points like mentioned above.


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## JBM (Mar 31, 2011)

For 300 bucks I wont accept a CC.....


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## S.U.M (Apr 17, 2013)

The best thing to do is give the client the total cost of the job based on cheque/cash/ email money transfer, if they wish to pay via credit card tell them there is a 3% charge if they really want to pay this way, also remind them they get the bonus points not you, I don't understand the contractor eating the % cause the homeowner wants the points.
If not "cheque please".


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