Businesses: do you allow CREDIT CARD payments?

[Fluid Power]

Originally Posted by GregWeld

Now here's an issue I've run into.

IF you pay your credit card bill IN FULL each month - you can NOT dispute a prior charge. Payment in full signifies that you are fully satisfied with all the transactions.

Not many people I know pay their bills in full - but I do... I'm lucky and have been retired for many many years now... and I'm not making 12 or 20% on my money - UNLESS I pay my bill in full... in that case I'm making that same amount of interest on my money - because I'm not paying it!

:>)

If a customer has to put their shop charges on a credit card - I'd quit working on their stuff...

My .02

With all due respect Greg, paying your bill in full has NO effect on your ability to dispute a prior charge. In most cases it just has to be done within 60 days. Maybe your cards are different. You can read more about your rights here: http://www.ftc.gov/bcp/edu/pubs/cons...dit/cre16.shtm

Darren

[GregWeld]

Darren --

You're no doubt correct. I only had this happen one time - and the time frame for disputing the purchase might have elapsed. I can't even think of what the dispute was now.. but I'll NEVER forget the Visa person telling me I can't dispute "whatever" because I'd paid my bill in full. I can't tell you how taken aback I was at that.

It's the same as when my buddy (owns a mortgage company) told me that people that make payments have a higher credit score than people that pay cash. Or even than people that charge but pay off the charge each month. That astounds me...

Anyway - it's all a good discussion! And as usual I usually learn something!

[Flash68]

Good points Greg. I guess if you are in a strong position to demand/only accept cash, then good for that business, but for one of my businesses I would lose sales if I did not accept credit cards/AMEX.

And there was a day when I definitely should NOT have been putting car mods on my credit card but I did it anyway cuz its a disease man!

And your point about higher FICO score because of carrying a balance is one I have been told is true and well documented. It's why I keep a small balance on my credit cards at all times to keep the ratios all in line that the credit reporting agencies use to determine your "creditworthiness"..

Good talk, Russ.

[GregWeld]

Well -- I'm the first one to tell anyone that will listen -- I'm one of those guys that's very very thankful for what has come my way quite by accident! I always say - "better lucky than smart!". I can tell you for certain... I'm luckier than smart!

My wife went to work for Microsoft in 1984 - and was senior management for 19 years.... I quit working at 40 and stayed home and raised our two kids. So I'm the guy they made the movie about - Mister Mom! LOL

I can also tell you that I have NOT forgotten when I didn't have a window or a bucket! Maybe that's why dressing up for me is blue jeans and a t-shirt with a hole in it. And I go down to my shed and do my own work... But I get to jump in my pool when I'm done on the hot days! EEEEEEEEHHHHHHHHAAAAAA

Credit is one of those things that baffles me. I pay cash and have enormous assets... and have a lower credit score than somebody making a grand a week and making payments. Go figure.

I have some european friends - and they just don't understand Americans use of credit. We've had many heated debates on the subject. As Americans - we've certainly witnessed what has happened because of the too liberal use of it - and what is happening to "us" when it dries up! But now I digress.

This has been a good topic....

[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.