Credit Card Payments

I currently don’t accept credit cards but I am thinking of doing so.

What are some of the advantages and disadvantages. What percentage are you currently paying to accept credit card payments.

The First and biggest drawback: chargebacks

Customer gets upset for one silly reason two months after the roof is finished. He calls the credit card company, and all of a sudden Visa yanks $13,742 out of your checking account, and there isn’t anything you can do about it.

That reason alone is why i longer take credit cards,they take it out and there is NOTHING you can do about it.

Jason- You sound like that has happened to you before.

I allow customer to use them for deductibles sometimes. If we swipe it, the rate is like 2% or something. It does help sometimes overcoming the deductible obstacle with our customers.

When we got set up, I asked the merchant rep about it and they said as long as we have a signed contract with the homeowner and the work is preformed, we shouldn’t have a problem. But I’m sure it is a risk.

Yup. Happened to me when I was the fnance director at a cadiillac lot a long time ago. Sold a $12,000 used car, let the customer put it on his credit card and two months later, the A/C compressor goes out. He didn’t want to pay the $1,500 to fix it, so he did a charge back.

The customer doesn’t need to have any reason to do a charge back they can just do it?

Well use paypal and charge the percentage that they will take i dont rememebr off the top of my head and when it clears you will know right then, hence the laptop. They pay inside you know outside if its good or not. Then you marked paid on the bill

But you must first explain on the contract the charge for using credit cards so you dont lose a penny. Hope that helps.

Oh nextel has a thing that does the same thing right in front of the customer but i like paypal alot better, keep track of money alot easier like quickbooks if you have windows 7 very easy.

cant they still do a charge back if you go through pay pal?

I’d be careful charging extra for credit cards. Set the contract price for credit and offer a discount for cash

If im not mistaken without you sending back the money there has to be a dispute where both sides tell the story.

As far as cash its illegal, checks are ok but cash is illegal and sooner or later you will get the irs man knocking on your door.

You said this in a previous post as well, why do you believe cash is illegal? That doesn’t make any sense to me.

Ok, I’ve said this before. CASH IS NOT ILLEGAL TO TAKE! When will u stop fighting everyone about this?

In reality, it IS illegal to refuse cash as payment. Yes. Illegal to refuse it.

Now… Accepting cash, stuffing it in your pocket, and not reporting it as income is tax evasion. But if you deposit it in the bank, it’s no different than a check or credit card.

And as far as credit cards go, there is no “both sides of the story” crap. The card holder is their customer, and that’s where their loyalty lies. That’s who they side with when the customer calls and files a charge back. They are who’s side they are on when they yank all the money out of your checking account. They don’t give a rats ass about you.

Then, the CC company starts it’s very lengthy investigation, all while holding your money, and they don’t give it back until the customer is happy. I’ve seen dozens of chargebacks on smaller amounts… Only one was ever sided with the retailer. Every other time the customer simply got the product, and the money back. Some people do it on a regular basis once they figure out how to work the system. It’s pretty sad.

This info is accurate. When u sign up to accept credit cards, the agreement says that you will not charge a fee to the customer to use the card.

However… Like he said, offering a discount for cash is acceptable.

we use a service called Virtual Merchant for processing our visa and mastercard transactions it works great, costs us 25.00 $ a month and 1.5 % …no problems so far and we have gotten a ton of work by offering acceptance of visa and mastercard for payment

We have a machine use it about 3 to 5 times a year hardly worth it really