Credit cards?

**Garry Dean** · 10-16-2008, 11:35 AM

Who here accepts credit cards? In my 4 years in business I have never accepted cards and have only been asked if I did maybe 3 times. I just renewed my business license and as usual when you do you get all kinds of telemarketing calls trying to offer their services. I hate that crap! Anyways, I got a call today about credit cards. Do you guys get more sales because you accept them?

Thanks

**Robb** · 10-16-2008, 11:52 AM

As a consumer, I hate places that don`t take credit cards. I get 1% cashback on all purchases on my CC, so I never carry cash or checks, just a thought

**imported_never gone** · 10-16-2008, 12:21 PM

FYI, I`ve been doing credit card processing for 10 years so if you are anyone has any questions, let `em fly. I can`t even begin to tell you how much dishonest crap I see on a daily basis. For me educations is #1, the more you know, the lest likely you are to get burned by sooooo many of these hack companies.

**gtpaul** · 10-16-2008, 12:38 PM

I`m thinking about doing it next year. I have a nice Moneris manual slider with a bunch of new carbon copies. My mom had it from her store and just passed it onto me because she never used it. I figure I can use this for convenience.

Do banks charge a percentage when you bring it in to cash?

How do I verify if the funds are available?

**Labster** · 10-16-2008, 12:48 PM

I`ve had a few people that wanted to pay me via Paypal which I accepted. One of these days I`ll get a portable CC machine or if I get a shop I`ll go with the standard card reader.

**imported_never gone** · 10-16-2008, 12:49 PM

Originally Posted by gtpaul

I`m thinking about doing it next year. I have a nice Moneris manual slider with a bunch of new carbon copies. My mom had it from her store and just passed it onto me because she never used it. I figure I can use this for convenience.

Do banks charge a percentage when you bring it in to cash?

How do I verify if the funds are available?

That`s the tough part about manually entering transactions, you can`t verify the funds are available. A portable terminal is the safest way to do it, granted the terminal isn`t cheap but the costs you pay for each transaction will be less. I know the process Canada uses is different than in the US so you should check with someone out there to be sure.

**Garry Dean** · 10-16-2008, 02:07 PM

I guess Im most concerned about whether or not your sale total is higher if you accept cc`s. Do people get higher end detail packages? Spend more money?

**Envious Eric** · 10-16-2008, 05:41 PM

you answered your own question...only 3 people in 4 years...

I have had the same exact number...I keep telling the telemarketers no thanks

**Twista616** · 10-16-2008, 08:09 PM

If you dont get that many requests for it...why bother? Isn`t it just an added expense? I have had one request...and he was more than happy to pay with cash after I said I couldn`t accomodate credit. i guess its just personal preference.

**MichaelM** · 10-17-2008, 07:35 AM

IMO the trend is towards the use of credit and debit cards as opposed to cash & check. It is more convenient and safer for customers to carry cards as opposed to cash.

I`m a fixed location shop and I get probably 80% of my customers paying with cards. Yes there is an expense in accepting cards, usually no more than 4% with any processor which is an easy thing to adjust for in your pricing.

Besides the convenience factor another advantage I see to accepting cards is the ability to have a reloadable gift card program. The hard plastic gift cards are more professional looking then paper GC`s that are written out. Being reloadable customers are more likely to hang on to them and come back to you. They are also a good marketing tool as you can load them up and give them away to church raffles, charity functions, local business owners as an intro to your services or as bonuses for their employees, etc. I got 500 free cards when I signed up for processing through First Data.

**Forever New** · 10-17-2008, 07:22 PM

Can any of you suggest a credit card company to go to? This would be for a fixed shop location. Thanks!

**brwill2005** · 10-18-2008, 07:01 AM

Out of hundreds of customers, I have never had anyone NOT have a service because I do not take credit. Most of my customers have enough $$ to pay with cash or check. Unless your customers demand it, it is just another expense.

**MichaelM** · 10-18-2008, 07:18 AM

Originally Posted by Forever New

Can any of you suggest a credit card company to go to? This would be for a fixed shop location. Thanks!

First Data is one of the largest. I just signed with them as their rates are better then the company I previously used (Merchant Warehouse). They also have better service as they have actual sales reps in the field not just an internet presence. The gift card program I mentioned earlier was another big reason why I switched.

HTH

**MichaelM** · 10-18-2008, 07:44 AM

Originally Posted by brwill2005

Out of hundreds of customers, I have never had anyone NOT have a service because I do not take credit. Most of my customers have enough $$ to pay with cash or check. Unless your customers demand it, it is just another expense.

That`s great and all and take this FWIW because i`m not trying to pick on you specifically and you can run your own businesses anyway you all like but look at accepting cards in a different manner...

You say you have never had anyone not buy a service because you don`t accept credit. Would some of your customers have bought more of your services knowing they could put it on a card instead of finding the cash?

You say most of your customers have enough $$ to pay with cash or check. Are you missing out on the customers who don`t have the cash but would be willing to put it on a card?

What is more convenient for your customers?

Do you try to up-sell your customers? Would up-selling be more productive if you had the option of credit payment?

These are just questions to ask yourselves that may help your decision some, please don`t feel the need to respond.

I understand you guys are trying to save expense but the cost is minimal. Just to put the cost in real dollar terms, the highest % I`ve been charged for a transaction is 4% while a vast majority is below 3%. That is, in the worst case, $400 for every $10,000 sold. For me typically it is closer to less then $200 for every $10,000.

IMO and experience (only 4 years in business but I have ~1400 customers) the benefits and added convenience for your customers far outweigh the added cost.

HTH