Credit cards?

Jakerooni said:
Been taking credit cards since the day I opened. Why would anyone deny taking a form of payment? I do probably about 70% in credit cards. Like MichelM I started with Merchant warehouse and now I'm with First Data. I pay about 1.4% in fees. Not bad for the convience of saying "Yes I take that" Cash is fine CC's and safe... Much better than accepting checks. Which I will only do if local.
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FYI, I will 100% promise you are not paying anywhere near 1.4%. Processors LOVE to throw our these ridiculous rates because they know that's what merchant LOVE/want to hear. I've been in the "biz" for 10 years and I'm with the 4th largest processing company in the US. I have merchants that do over $1 million a month in cards and they are not even close to a 1.4% If you understand how the pricing to ALL processors works, you would understand that NO MERCHANTS (even someone as big as WalMart) isn't paying 1.4% or anything even close to that. Example, a basic SWIPED visa card costs EVERY processor in the US 1.6325% + $.10 a transaction. A rewards card is 1.7425% + $.10a key entered (not swiped) card is 1.9425% + $.10 a trans and so on. There are over 100 rates that a Visa and MC can fall into and the rate you SHOULD pay is what ever that particular card costs according to V/MC. The problem is most processors just give tiered pricing of qualified, mid qualified and non qualified rates. V?mc have NO categories what so ever called qualified, mid or non. I could go on forever but I don't want everyone to fall asleep. I love educating merchants on this stuff because an educated merchant is a dangerous merchant.
 
I believe with Merchant Warehouse, after all fees from processing and from MW, I was usually between 2.5-4%. This is my first full month with First Data, hopefully that will come down some.
 
MichaelM said:
I believe with Merchant Warehouse, after all fees from processing and from MW, I was usually between 2.5-4%. This is my first full month with First Data, hopefully that will come down some.
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You have to be VERY cautious with First Data. They have the worst statements in the industry and I have never in 10 years met a merchant that really understands them and here's why. They usually do a billing method they call "enhanced billbacks." What this means is let's say you have an Oct statement from them. Well with any processor, even the really bad ones, your Oct statement will reflect all your Oct transactions and fees. However what First Data, they will put some of your Oct fees on your Oct statement and carry the rest over onto the Nov and sometimes even Dec statement! There is NO WAY a merchant can really balance their statements and nobody in the industry understands why they do that but I'm pretty sure it just makes it easier to hide fees.
 
I'm six years into our fixed location. We don't take credit cards.

We have a relatively affluent clientele, and it does not pose many issues. I can process cards through my "tint guy" when absolutely necessary.



For example, last week we did a Federal Law Enforcement vehicle, and they only pay via government issued cards.



With the advent of debit cards, I'm sure I'll be forced to give in shortly. But the current economy has me sitting on the sidelines...



BTW, assuming 80% of clients will use the card, based on my current volume and a nominal 4% rate, processing will cost $7,200 per year! Unless I raise prices (again), that money comes right out of net profit (that's my pocket, by the way).



So, I'm tilting towards acceptance more than ever, but for now, I'm just watching.



Jim
 
Jimmy Buffit said:
I'm six years into our fixed location. We don't take credit cards.

We have a relatively affluent clientele, and it does not pose many issues. I can process cards through my "tint guy" when absolutely necessary.



For example, last week we did a Federal Law Enforcement vehicle, and they only pay via government issued cards.



With the advent of debit cards, I'm sure I'll be forced to give in shortly. But the current economy has me sitting on the sidelines...



BTW, assuming 80% of clients will use the card, based on my current volume and a nominal 4% rate, processing will cost $7,200 per year! Unless I raise prices (again), that money comes right out of net profit (that's my pocket, by the way).



So, I'm tilting towards acceptance more than ever, but for now, I'm just watching.



Jim
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Couple things. Be careful running transaction through your tint guy, that's a huge no no for V/MC and he could get fined huge IF they found out. Second, you would not be paying anywhere near 4%. I can't believe if you have a higher end clientele that you wouldn't already take cards. They usually want to use their cards for points/rewards. Plus it's a fact that you will have more add on's and higher average tickets if you were to take cards. Food for thought.





Greg, you asked about options for mobile detailers. There are many types on wireless terminals these days.
 
JonP said:
I been accepting credit cards since 1990 and tried a few companies but switched to one called ProPay around 2004. Been happy with their service since then. They have a card scanner for the mobile businesses. You can use your laptop or cell phone to process a card on the site. You do have to watch out for some of these credit card services. Most charge outrageous fees and prices with poor customer service that sometimes it's just not worth it.
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I to use propay and have the mobile machine with the type of clients i deal with i have to take cards.they are cheap for fees o far from what i found an now they are linking with ebay so screw the paypal fees.
 
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