Credit card fees.... who's charging them?

g35_coupe

g35_coupe

New member
Joined
Jul 9, 2010
Messages
413
Reaction score
0
I don't ever plan on charging fees since CC usage is just part of the territory. Plus, I use Square and the fee is under $3 for most jobs so it's no big deal. I'm sure some of you pros are doing $400-$500 (or more) paint correction/coating/etc. jobs. Just curious who is passing them onto the customer? I know CC companies are against such fees since it discourages profit for them. Are some of you guys giving cash customers a "discount"? Just doing a poll.
 
This reminds me of gas stations that give a cash discount, which I hate because their credit price is usually the same as other stations. I don't do it. I use paypal here which is the same fee as squaretrade. I personally eat the fee as its the cost of doing business. On those more expensive jobs some people don't like to carry that much cash..etc. It's all convenience in my opinion.
 
I thought legally you couldn't charge a 'fee' for accepting CC's? I'm I wrong about this?
 
g35_coupe said:
I don't ever plan on charging fees since CC usage is just part of the territory. Plus, I use Square and the fee is under $3 for most jobs so it's no big deal. I'm sure some of you pros are doing $400-$500 (or more) paint correction/coating/etc. jobs. Just curious who is passing them onto the customer? I know CC companies are against such fees since it discourages profit for them. Are some of you guys giving cash customers a "discount"? Just doing a poll.
Click to expand...

Maybe a wash and wax for $20-25 may amount to something significant, but a $400-500 paint correction should not hurt your bottom line. If you still feel you are leaving some money on the table, just raise your quoted price to include this fee.:props:
 
Don't think it's illegal, per se, but charging fees for credit cards violates most issuer agreements, and frankly looks low-class. Are you running a high-end detailing business? Or a by-the-hour motel?
 
Its tacky at best .... figure it into your total cost, but don't squeeze the client for additional fee's at the end. (be glad their paying, right)
 
kb2ehj said:
I thought legally you couldn't charge a 'fee' for accepting CC's? I'm I wrong about this?
Click to expand...

In some states. Some states actually have people that audit and check companies to insure they are not charging a fee to use a card.

We use both Square & PayPal to process CC's. The monthly reporting does vary between companies. Our accountant recommended Intuits processing since he likes their monthly reports and such; but their fee was higher than Square & PayPal.
 
I was always under the impression that the fee was buried in the cost of the product. Maybe I'm wrong.
 
I'd say that if you're worried about it, just raise your prices 5% and "include the fee as part of the price." This way you don't look like your pushin the customer for every last penny that you can. Good luck with it!
 
We let the customers know beforehand of the cost of using a card.

Sure, we can cover the cost, but after a months worth of income, square could potentially take a couple hundred bucks of it. No thanks!
 
The laws on this were changed about 2 years ago. You now have the ability to charge customers a fee, although there are restrictions.

I never understood this practice, and it seems odd to charge customers. Yes you do have to pay a percent, but it is likely costing business, as I am sure I am not the only one that would not do business with a company with that practice.

It is far safer than taking checks, and even cash. You do not have to worry about taking it, keeping it safe, compiling it, transporting it to the bank, and depositing it. I am curious of what percent of cash and checks never make it into the bank for one reason or another.
 
I absorb it. If they pay cash great but I certainly don't hit them up for 6 bucks on a 250 dollar job
 
BitterGreg said:
Yes you do have to pay a percent, but it is likely costing business, as I am sure I am not the only one that would not do business with a company with that practice.
Click to expand...

Have you been to a gas station or convenience store that charges to use debit?

I'm sure you have because about all of them do it. And I'm sure you pay the price without blinking... I mean, you have to be pretty cheap to walk away from a tiny fee to use a card

I'm not a convenience store, LOL, but I make sure that my clients get their money's worth. And I let them know it's cash or card with a 3% fee before starting any work. Fair, right?

To me, not charging the small understandable fee is like not claiming everything reasonably possible come tax time. 3% of my expenses during the year can equate to all of the microfiber towels I buy. I don't buy much, but you better believe that I'm writing it off!

But your right! Anyone that is too cheap to pay the 3% convenience fee of swiping their card instead of running to the atm should not do business with me. Which, for the past year and a half has been NOBODY LOL
 
I wouldn't do business with you, sorry. It's a low-class tactic.
 
I have never charged a cc fee as mentioned above "it's part of the territory".

That said, I accept all of the major credit cards. AmEx is the highest percentage followed by Discover. There aren't many clients who use Discover these days, however there are a few who always prefer AmEx. I'll eat the costs as needed, but have no problem with it.

By the way, I only accept cash from first time clients/customers. I was burned once and am not about to let it happen again.
 
Kengo123 said:
Have you been to a gas station or convenience store that charges to use debit?

I'm sure you have because about all of them do it.
Click to expand...


Not in my part of the country. Just because your little world does doesn't mean all do.

Cost of doing business. If it's that important to you factor it in. Like others, I wouldn't do business with you because it smacks of nickel and diming for every last penny.
 
The only place that charges me to use my card is my gas company. They charge a "convenience fee" and it makes me angry every single time. Anytime I process a card I eat the fee.
 
Kengo123 said:
Have you been to a gas station or convenience store that charges to use debit?

I'm sure you have because about all of them do it. And I'm sure you pay the price without blinking... I mean, you have to be pretty cheap to walk away from a tiny fee to use a card

I'm not a convenience store, LOL, but I make sure that my clients get their money's worth. And I let them know it's cash or card with a 3% fee before starting any work. Fair, right?

To me, not charging the small understandable fee is like not claiming everything reasonably possible come tax time. 3% of my expenses during the year can equate to all of the microfiber towels I buy. I don't buy much, but you better believe that I'm writing it off!

But your right! Anyone that is too cheap to pay the 3% convenience fee of swiping their card instead of running to the atm should not do business with me. Which, for the past year and a half has been NOBODY LOL
Click to expand...

1. All of them do not do it. I can not think of a time any have charged me. A lot of gas stations have a minimum you have to buy in order to process a card, and that is not the same thing.

2. This point makes no sense, and you are actually making an argument against your point. You write off your microfiber costs because you paid for them. If you had a fee for c/c processing you could write that off as well. Its the cost of doing business.

3. A little ironic you are calling your customers cheap for not ponying up an expense to your business, and thinking the customer needs to go to the atm to be convenient for you.

4. You might want to do some research, because there are specific terms that have to be met in order for it to even be allowed to charge that fee, and each company is different. If someone we to call an complain, you could be out some money.
 
BitterGreg said:
1. All of them do not do it. I can not think of a time any have charged me. A lot of gas stations have a minimum you have to buy in order to process a card, and that is not the same thing.

2. This point makes no sense, and you are actually making an argument against your point. You write off your microfiber costs because you paid for them. If you had a fee for c/c processing you could write that off as well. Its the cost of doing business.

3. A little ironic you are calling your customers cheap for not ponying up an expense to your business, and thinking the customer needs to go to the atm to be convenient for you.

4. You might want to do some research, because there are specific terms that have to be met in order for it to even be allowed to charge that fee, and each company is different. If someone we to call an complain, you could be out some money.
Click to expand...

EDIT: Here is a link with some information. The law that went into effect 2013 is only for Visa and Master Card, and only for Credit Cards. You can not charge one for Debit Cards. There are also states where the law is prohibited, California is one of them. It appears you also have to have a line items for it on your receipt.
Credit card surcharges now allowed, but retailers hesitate
 
You must log in or register to reply here.
Back
Top