Now Accepting Credit Cards!

Josh@BR

Josh@BR

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Since credit cards are becoming the most popular way to pay for things I've decided to start accepting them. I was very hesitant at first since I didn't want to hassle with a difficult machine. I recently heard about the Square credit card reader that is a little device about 1.25"x1.25"x.25" that plugs into your Android or iPhone smartphone. From there you just set up your free account with them and can start accepting payments. There is a small fee for using it like with all other credit card readers but 3% isn't bad. I actually plan to charge a 5-10 dollar fee for credit card users to help with the fee. Just thought I'd share!:)"
 
Congrats man! Did you pay for your reader? I know the iPhone people can download the free app and they will send you a free reader. Otherwise it's $9.99. Charging a fee is wise on your part and make sure you explain that to the customer before you begin the work.
 
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Your not allowed to charge more for credit card processing, its in the terms of service of the various credit card companies. A local technical collage got bit by this.
 
I was just about to comment here about this but seems as though it's already mentioned.

You can't charge more for credit cards, but you can offer a cash discount. Which is basically the same thing. You up your prices by a few dollars and then just offer the cash discount to anyone who pays by cash or check.
 
Josh@BR said:
Since credit cards are becoming the most popular way to pay for things I've decided to start accepting them. I was very hesitant at first since I didn't want to hassle with a difficult machine. I recently heard about the Square credit card reader that is a little device about 1.25"x1.25"x.25" that plugs into your Android or iPhone smartphone. From there you just set up your free account with them and can start accepting payments. There is a small fee for using it like with all other credit card readers but 3% isn't bad. I actually plan to charge a 5-10 dollar fee for credit card users to help with the fee. Just thought I'd share!:)"
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I've been using that device/app since August. Love it!! It's nice to be able to email/text the receipt instead of paper print-outs. I definitely wouldn't charge a fee though...the amount taken out really isn't enough to consider it. Besides, the fact that there isn't a monthly fee saves within itself.
 
08xB said:
You can however, offer a "cash discount"...
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If you take credit cards you can't offer a cash discount without being in violation of the credit card issuer. This is how the local technical college got in trouble.
 
Good to know guys. Thanks!
rwright- no I did not pay for the reader it was free and I guess it wasnt a wise idea to charge extra for credit card processing LOL
 
Josh@BR said:
Good to know guys. Thanks!
rwright- no I did not pay for the reader it was free and I guess it wasnt a wise idea to charge extra for credit card processing LOL
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I stand corrected. I guess it's part of the new credit card rules? Oh well. "Tips are always appreciated" brings on a new meaning!


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AeroCleanse said:
If you take credit cards you can't offer a cash discount without being in violation of the credit card issuer. This is how the local technical college got in trouble.
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Perhaps this is a state-to-state law or regulation. Almost every gas station in Michigan offer two different prices: one for cash, and one for credit. A lot of local businesses offer a cash discount.
 
This is quoted from a consumer credit card rights website....

"Note that a cash discount is legal and permitted under all credit card companies rules. A cash discount offers a lower price for cash than credit; for example, many gasoline stations offer cash discounts. While this may merely be a loophole, it is permitted. In addition, there are a few state governmental agencies, including state tax offices and motor vehicle departments, that are permitted to charge surcharges due to state laws that do not permit them to pay discount fees. However, retail merchants may not impose surcharges."
 
08xB said:
Perhaps this is a state-to-state law or regulation. Almost every gas station in Michigan offer two different prices: one for cash, and one for credit. A lot of local businesses offer a cash discount.
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I see its been modified to allow discounts now.

Rule 5.11.2 of Chapter 5, “Merchants and Sales Transactions,” is modified to include the following: In addition to a discount for cash, a Merchant may provide a discount to its customers for other forms of payment, including differential discounts for other payment brands. Such discounts must be clearly communicated at the Point of Interaction.

See: Home | MasterCard® for Merchants | MasterCard® Worldwide
 
AeroCleanse said:
If you take credit cards you can't offer a cash discount without being in violation of the credit card issuer. This is how the local technical college got in trouble.
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Truck stops and gas stations do it all the time in GA and FL.
 
I use square also it's the bomb, sends you emails and allows you to text a receipt to your customer or email them, u can even take a pic of their car to add to it with notes, no monthly fees and no fee for the card reader what more could u ask for?!
 
Perfections said:
I use square also it's the bomb, sends you emails and allows you to text a receipt to your customer or email them, u can even take a pic of their car to add to it with notes, no monthly fees and no fee for the card reader what more could u ask for?!
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Glad to hear more positive feedback about this. I didn't know you could add pics of the clients car in the receipt either that's awesome! I'm sold I can't wait to use it!
 
Josh@BR said:
Since credit cards are becoming the most popular way to pay for things I've decided to start accepting them. I was very hesitant at first since I didn't want to hassle with a difficult machine. I recently heard about the Square credit card reader that is a little device about 1.25"x1.25"x.25" that plugs into your Android or iPhone smartphone. From there you just set up your free account with them and can start accepting payments. There is a small fee for using it like with all other credit card readers but 3% isn't bad. I actually plan to charge a 5-10 dollar fee for credit card users to help with the fee. Just thought I'd share!:)"
Click to expand...

Could you provide a link for this? Very interesting!!!
 
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