Replies

1. 
   SHazlett | Sep 16, 2002 05:06pm | #1

   I accepted credit cards for about a year. After the first year I discontinued the credit card program for the following reasons----

   1)The current procedure is a giant pain in the rear.When my father used to accept credit cards he simply took an impression of the card with a simple machine,filled out a slip and then deposited the slip to his bank account like a check. It was a very simple arrangement---not much different than being paid by check. The new arrangement required 'phoning in every charge plus punching secret code numbers,account numbers etc. Just a giant hassle.

   2)Although a reasonable number of people who called requesting work estimates also asked if we would accept credit card payment-----only 2 over the course of a year actually paid by credit card( less than 1% of actual customers)

   3)I can't remember the actual cost---but there was a service charge of about $30-40/month to maintain the ability to accept credit cards----wether anyone actually used it or not.Plus the credit card company gets a percentage of the actual sale over and above that monthly service charge.

   4) credit card sales are really best for retail establishments that will use the service many times each day. If I had a resteraunt or a shoe store I couldn't survive without credit cards-------but my business gets along nicely without them.

1. 
   bill_1010 | Sep 16, 2002 05:21pm | #2

   if you really want to accept CC, go the round a bout way and just have then pay with Pay Pal. (paypal.com)

2. 
   DavidThomas | Sep 16, 2002 08:15pm | #4

   Seems unlikely that a customer would base the selection of a contractor on taking credit cards. Even if they do get frequent flyer miles, etc for using it.

   When you are paid with a check, and have cashed it, you've been paid. But with a credit card, the customer has more recourse. If they claim fraud or misrepresentation or faulty work, they crdit card company can reverse the charges. I had it happen once and they never even contacted the merchant for our side of the story. In retrospect, the customer bought the computer with a credit card specifically to pull this trick. He got the computer for a month, rent-free and we had to take it back because he'd already gotten his money back. I'd be especially concerned about this possibility in a construction setting because so many disagreements can arise.

   After buying a variety of things ($10 to $150) on ebay with paypal.com, I bought a sailboat remotely with it for $5,150. Transaction went just fine with me and the seller. But paypal was calling each of us every few days for 10 days for them (paypal) to feel comfortable with it. Left me with the strong impression that paypal does lots of $20 transfers and not a lot of real big amounts.

   David Thomas   Overlooking Cook Inlet in Kenai, Alaska

1. 
   SHazlett | Sep 17, 2002 01:48pm | #5

    Dave,many people pay for almost everything with credit cards---even groceries.I do a lot of roof repairs,and my thinking was to cover the people who need a roof repair NOW,but don't have the cash untill next week. what actually happened was that -----

   1) customer A,paid for an entire roof with a credit card---then went on vacation.A few days later my bank account showed the credit card company had paid me TWICE for the roof. I was concerned this would take my vacationing customer over her limit just when she needed to rent a car or buy plane tickets,so I spent a frantic day and a half getting that sorted out.

   2)customer B paid by credit card for several roof repairs---everything went as planned.Almost 2 months later customer calls really p.o.'ed ----complaining that the credit card company had charged him for a cash advance and not a purchase.I told him" sorry,it's out of my hands----talk to the credit card company"

   I have ZERO interst in processing customer payments on-line. If the customer needs to pay with a credit card,then THEY can go to the bank with it and get a cash advance to pay me.

   BTW most of my jobs are paid for with a check drawn against a home equity line of credit.

2. 
   diddidit | Sep 16, 2002 06:53pm | #3

   Check out ProPay. You do all of the processing online. There's a percentage fee, but no monthly fees. My wife got a little credit-card imprinting machine just so she could give customers a receipt and not have to worry about writing a number down wrong. They keep an account from which you can transfer $$ to your regular checking account. Seems great for a small business.

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