Service based business - do you accept credit card?

amother

Fri, Nov 19 2021, 8:33 am

I do small business bookkeeping. I am set up with square so technically can take credit card tho I prefer not to. Only once someone asked me and offered to pay the 3 percent since he needed to make a spend threshold on his card for points or something.
This guy is paying me for a year of work so it’s a lot at once

watergirl

Fri, Nov 19 2021, 8:42 am

singleagain wrote:

This is a good question... Are you even set up to take credit cards?

Right.

If it's a one time $50 fee, then thats the cost of doing business and the business owner needs to just pay it. Even if it’s $50/month, that should be absorbed by the business. As for those suggesting she charge a two or 3% service fee to use a credit card machine, I can’t think of the last time I’ve had anybody do that to me. It used to be a thing but really isn’t any more for a long time now. Sometimes, stores have you pay tax only if you’re paying by credit card and no tax if you’re paying with cash, but I don’t give a kind of place my business.

This day and age, people have so many options as to where to give their business and part with their hard earned cash, a smart business owner is the one who removes any obstacle or deterrent from getting that persons business. Charging a percentage for the benefit of using a credit card is antiquated and not considered best practice anymore.

amother

Oatmeal

Fri, Nov 19 2021, 8:47 am

I think you need to take credit card. If a place does not take credit card I will probably not go to them since that's my primary way of paying for things. I do have quick pay so if a place offers that I will pay with that. I think it's a little petty not to take a credit card in this day and age.

watergirl

Fri, Nov 19 2021, 8:47 am

amother [ OP ] wrote:

I seriously don’t understand the problem. Why don’t you want to take a credit card if you’re set up for it already?

amother

Cinnamon

Fri, Nov 19 2021, 9:32 am

If it's a commercial job, for a school or office we will take credit cards and we eat the cost. But for a personal account it's cash, check or zelle. I've never had an individual ask to pay with credit but I would add a fee if they did.

amother

Cinnamon

Fri, Nov 19 2021, 9:35 am

If you’re doing bookkeeping then I’m guessing that you’re working with all businesses? Probably worth raising your rates so they include the credit card fees.

Rubber Ducky

Fri, Nov 19 2021, 10:00 am

A client paid with PayPal a few years ago but paid the extra fee. It was for design + a cabinet sale, so 3% would have been more than 10% of my profit.

I put payment terms into my contract which I usually give to clients at our first meeting — saves a lot of misunderstandings later on.

amother

Lotus

Fri, Nov 19 2021, 10:16 am

I have a service/product business and pass on the three percent to my customers, it is very clear in the invoice and I offer other payment methods, zelle, checks, cash... Why should my small business and in turn my family lose out by paying high credit card fees when there are other options available that don't cost me or them anything
Most people are happy to pay the fee or pay another way
And it is simpler this way then to up my prices I sell a wide range of things, why should my customers paying with zelle, cash, check have to pay an increase as well
In your situation I would bite the cost for this time and make it clear for the future

amother

Mintgreen

Fri, Nov 19 2021, 10:23 am

Dh has a service business and cc is the primary form of payment. Most clients are set up on automatic payments so he doesn't have the hassle of bounced checks or running after payment.

So worth it.

It's 3%. It's a cost of business.

Especially if you're dealing with business clients - they'll be used to paying with cc.

amother

Khaki

Fri, Nov 19 2021, 10:38 am

I have a service based business. Over the years I found that taking Cc is actually better for me. It makes the whole money thing much less of a hassle. I have my clients Cc and file and it goes through automatically. I don’t have to bother running after anyone for the money. I do not pass on the fee.

Sewsew_mom

Fri, Nov 19 2021, 10:40 am

Raise your prices and give a discount if anyone wants to pay cash or other alternative. I've seen stores do that.
But I also dislike when people charge a fee to use a card without letting me know before hand. It's uncomfortable.

amother

Alyssum

Fri, Nov 19 2021, 10:59 am

I’m a sheitel macher. Don’t accept cc. Most people don’t ask, occasionally when someone is buying a wig theyll ask and I’ll try to help by paying an outstanding balance by one of my wig vendors. Thou recently a lot of the stopped accepting cards too. Zelle and cash app save me ..
I do have an auto reply that let people know I don’t accept cards

amother

Cinnamon

Fri, Nov 19 2021, 11:02 am

amother [ Lemonchiffon ] wrote:

I don’t think you should add 3% unless it was clear upfront.
I’d be really upset…

Well like someone else pointed out, most plumbers and babysitters don't accept credit cards at all. So not paying with credit card is an easy way to get out of the fee. Honestly if you're in a field that doesn't normally take credit cards, there's no reason to disclose that up front. People assume you don't take them.

amother

Cinnamon

Fri, Nov 19 2021, 11:03 am

vintagebknyc wrote:

I accept Venmo, Paypal, and have a Square reader on my phone. Accepting credit cards was game changing.

My husbands the one going to the house and his phone doesn't take apps. Most people around here have zelle.

jewishmommy1

Fri, Nov 19 2021, 11:39 am

Be aware that if you want to charge extra for using a credit card, you should consult a rav about how to word your policy. If it's phrased the wrong way, it can actually be an issur d'oraisa of ribbis. However, it should be simple for a rav to give you a properly worded sentence that lets you collect the fee without running into ribbis issues.

amother

Pearl

Sat, Nov 20 2021, 3:53 pm

jewishmommy1 wrote:

It's also illegal in 10 states including New York.
https://www.valuepenguin.com/c.....-fees

chanasmom

Sat, Dec 04 2021, 11:13 pm

You can do whatever you’d like. As a customer, I am less inclined to use businesses that don't accept or charge more for credit cards. So you might have to pay a percentage, but you also won’t lose business from people who can easily shop or find the service you are offering elsewhere that does accept credit cards with no extra fee.