Payment by credit cards

[NickfromWI]

Approx 20-25% of our income comes from credit card transactions. Our contributions to Square Inc are quite substantial.

love
nick

 

[treesandsurf]

I'm guessing in the ballpark of $4750/yr nick?

JP

 

[NickfromWI]

$5,485 so far this year. Just checked right now for the sake of this convo


love
nick

 

[Reddog]

Better understand the risks of charging process fees. http://www.creditcards.com/credit-card-news/credit-card-convenience-fees-cost-surcharges-1280.php


Better to offer a cash discount.

 

[SouthSoundTree-]

Surcharges are also illegal in 10 states: California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas.


from Reddog's link.

 

[emr]

We checked here for wording and we're good....maybe not as far as the cc companies terms go but I don't really care about that. We do offer green cash discounts.
As I see it credit cards cost the most so we charge for it. Checks have some risk and most people pay with them so we factor that into our bids. Cash has no risk and not many people pay with it.... So.... Discount.



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[NickfromWI]

How much of a cash discount you guys giving? I keep it at 5%. Always wonder if 10% is more reasonable and better for me. The new office manager likes everything on the up and up. We never really do cash jobs any more.

 

[emr]

5%.
Our accountant is the president of the state accounting society and she definitely want us to be legit. Figure it's an 8% difference between credit cards and cash. That's significant on anything over $1000.

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[sotc]

Ten is too much! I don't discount anymore. You discount, then you gotta drive across the valley to meet them and get paid when you should be bidding or fishing, absolutely ridiculous. We take cash if they pay the crew, bring it to the office or aren't far outta the way but no discount.

 

[NickfromWI]

I never offer it. If they ask (which is less than 1% of the time) I'll offer 5% and if they ask for more I tell them I'd rather have the check.

 

[FJR]

5% here too, but I never offer it. Cash jobs make up less than 2% of our work.

 

[Raj]

Up here some companies go the other way, price is the price for cash, add % for debit or credit cards.

 

[CurSedVoyce]

I just don't do discounts. My way of figuring is that I already give you a good value for the work I am about to perform.
By my way of figuring, it will all average out somewhere.

 

[treetx]

A 10% discount only works if that money stays under the table.

 

[NickfromWI]

I would never ever do that. All income must promptly be reported to the IRS and applicable state and local governments. My success as a business owner is due mostly to their management of our infrastructure. They must have a significant percentage of the little I earn

 

[treebilly]

Well spoken. Sounds like you have been coached in legal jargon

 

[sotc]

Yep, I agree completely