Businesses: do you allow CREDIT CARD payments?

[Blake Foster]

Try this.
try taking 40,000 in cash to the bank teller for a job and see what happens!!!!!

now that cash is not an acceptble method of payment and CC are no good what is the option????????
interact?? that has now become the only acceptable payment type. cuz you sure ain't gonna take a personal cheque are you.
we normally will have the customer get a certified bank draft. it is a PITA for the customer but thats too bad

[ironworks]

I do very few credit card transactions. I have found the guys who really can't afford to build a car try to use a credit cards. I have customers send me a check every 2 weeks for the work completed in that time frame. They send me a personal check and we start on another invoice. If at any point they are not satisfied they can pull the car or I can get rid of them. The additional expense of credit card charges for doing the transaction, is reason enough to me to not do a credit card transaction.

I understand some customers want the points or mileage for the large expense, but in the car building industry there is not the room in the hourly rate to lose another 2-3% on a regular basis. That margin could make the difference between a successful profit margin and not.

[tones2SS]

All very good and valid points guys!!
Very good topic.

[Flash68]

Originally Posted by killer69

Try this.
try taking 40,000 in cash to the bank teller for a job and see what happens!!!!!

now that cash is not an acceptble method of payment and CC are no good what is the option????????
interact?? that has now become the only acceptable payment type. cuz you sure ain't gonna take a personal cheque are you.
we normally will have the customer get a certified bank draft. it is a PITA for the customer but thats too bad

They would not accept your $40k in cash? I don't know why they would not take it. That's strange to me.

I probably would be very annoyed if my builder asked me to get a certified check every time I had to make a payment.

Originally Posted by ironworks

I do very few credit card transactions. I have found the guys who really can't afford to build a car try to use a credit cards. I have customers send me a check every 2 weeks for the work completed in that time frame. They send me a personal check and we start on another invoice. If at any point they are not satisfied they can pull the car or I can get rid of them. The additional expense of credit card charges for doing the transaction, is reason enough to me to not do a credit card transaction.

I understand some customers want the points or mileage for the large expense, but in the car building industry there is not the room in the hourly rate to lose another 2-3% on a regular basis. That margin could make the difference between a successful profit margin and not.

Like I said before, credit cards used wisely are a great tool and apparently you haven't run across any of these type of people. I don't think it's fair to assume they can't afford to pay cash just because they do not, unless of course you ask for their personal financial statements before entering into a build. I have paid my invoices to my builder all with CC's, but I could have paid cash. Did they know that? No, cuz they didn't ask and I didn't tell.

If you don't like the fees for CC merchant fees, tell customers you will add 2-3% to the invoice to take credit cards. That way they still get to decide if they want the points and the benefit of 30 days cash flow. And you don't lose out.

This is a good thread topic and very interesting. Thanks to you builders for chiming in with your opinions.

[Fluid Power]

Any cash deposit over 10k has to be accompanied by a form at the bank. It is the governments way to try and track money laundering.

Darren

[camcojb]

Originally Posted by Flash68

If you don't like the fees for CC merchant fees, tell customers you will add 2-3% to the invoice to take credit cards. That way they still get to decide if they want the points and the benefit of 30 days cash flow. And you don't lose out.

California doesn't allow you to charge extra to take a credit card, even though there are fees on your end for taking them. They do allow you to discount for cash though, so technically you'd have to add the 3% into all your bills and then deduct if the guy pays by cash or certified check.

[Vegas69]

I sent Frank at Prodigy 3 wire transfers for labor. I have used credit cards for every other purchase for safety purposes. There are so many people that have my credit card numbers it's staggering. I'm just not comfortable with my debit card number floating around. Like Flash, I want to get my points and pay it off every month.

[Flash68]

Originally Posted by camcojb

California doesn't allow you to charge extra to take a credit card, even though there are fees on your end for taking them. They do allow you to discount for cash though, so technically you'd have to add the 3% into all your bills and then deduct if the guy pays by cash or certified check.

Are you sure? We just tried to pay a new vendor for our restaurant with AMEX (cant remember the vendor) but they were going to add 3% to the bill if we did, otherwise check or cash. Maybe they are doing it like you said, quoting us the cash discount price and with AMEX/VISA/MC it's the regular full price. I need to verify that. thanks

EDIT: Jody, I just rememdered... it was the Calif State Board of Equalization. They accept debit only or charge you 3% for credit card!

[Fluid Power]

Originally Posted by Flash68

Are you sure? We just tried to pay a new vendor for our restaurant with AMEX (cant remember the vendor) but they were going to add 3% to the bill if we did, otherwise check or cash. Maybe they are doing it like you said, quoting us the cash discount price and with AMEX/VISA/MC it's the regular full price. I need to verify that. thanks

EDIT: Jody, I just rememdered... it was the Calif State Board of Equalization. They accept debit only or charge you 3% for credit card!

I have seen that in Ohio, Hell we do it when we are working a super thin margin. We don't line item it out as much as increase the price. Making the customer aware that by paying with a credit card we had 3%. Same difference I suppose.

Darren

[camcojb]

Originally Posted by Flash68

Are you sure? We just tried to pay a new vendor for our restaurant with AMEX (cant remember the vendor) but they were going to add 3% to the bill if we did, otherwise check or cash. Maybe they are doing it like you said, quoting us the cash discount price and with AMEX/VISA/MC it's the regular full price. I need to verify that. thanks

EDIT: Jody, I just rememdered... it was the Calif State Board of Equalization. They accept debit only or charge you 3% for credit card!

yeah, the state can do a lot of things we can't. It may have changed by now, but the scenario I gave was law back when I had my speed shop. I think that's why you see the signs for cash price on gasoline that's less than the price at the pump.

Jody