How many of you don't accept credit cards?

[Rocco]

I see a lot of threads about what merchant accounts to use, etc. But my question is, how many of you out there do NOT accept credit cards as payment? Or checks for that matter.

If you don't, how large of an operation do you have? Is there any reason in particular?

As some of you are aware, June 1st, I will be opening the door on my own business. I am pretty convinced I will be accepting credit cards, probably through square, or possibly Intuit. I figure that the credit card fee is a tax deduction, so it all comes out in the end anyway. I know for me personally, I hate cash. I do not carry it around. If I lose a wallet with $500 in it, I can almost guarantee you a loss of $500. If that wallet has a debit card in it, then my banks guarantee me any money spent after I report it will be reimbursed. (I keep the phone number in my car and my house...)

If you have decided to accept credit cards, when did you decide? Was it straight out the gate like I am, or was it only after you started doing certain amount of business? What was the deciding factor for you? This also goes for checks. I am very leery of accepting checks. Bounced checks are costly, and a pain to correct. Is it still very normal in today's world to get checks for $100?

 

[compnet]

We don't accept checks except from businesses. We didn't get too many bounced checks, but wasn't worth chasing down when we did. If you have a store front with no checks I almost think you have to accept credit/debit.

 

[mdopro1]

I started off by using paypal but it was pretty lousy. Now I have a terminal from Moneris and they gave me free iphone swipper too. It's a no hassle setup but I pay a monthly fee. However, I charge 2% on credit card and add it as labor charge and never had anyone complain too much. So basically what Visa and Mastercard charge me, I turn around and charge customer for convenience. So I pay $30 a month and that's all.

I also at times use the "I'll waive 2% credit card fee for you" when I have a client who's not optimally satisfied, be it not meeting estimated time for repair or whatever. So it's my escape goat too.

 

[Tony_Scarpelli]

I started out cash and check only and it was good a few years but then once we got to have 4-5 techs they would accept any check from any customer and we started seeing some sizable hot checks for like $600 for a new system and we figured the visa fee was about the same or less than the hot check aggravation so we switched to no checks but took visa for the 2-3% cost.

however still pretty much all existing customers we take checks, we only require visa from a 1st time customer or business. We find that we almost never get hot checks anymore.

Also since you are starting new.....train your customers even business customers to pay when service is delivered....This will save you a great deal of cost and trouble.

I don't' like to spend a few hours earning money, then spend a few weeks and more of my time trying to collect it an turn it over to a collection company. There are enough dead beats to make it PITA.

Out of over 6500 about 500 business customers I probably only have 2-3% that pay net 10. Everyone else pays COD check/cash or visa. This saves you lots of time, helps improve your cash flow as you have it when you earn it and cuts down on your losses from hot checks or non payment when someone goes out of business and you can't find them.

 

[dombooth]

Cash only here, card payment cost too much and I just don't trust people to pay cheques.

I will accept cheques on a second visit to a business customer.

Dom

 

[ComputerRepairTech]

Increase prices by 3% then, but every shop should take debit/credit cards. I wouldnt let the customer know you are charging them extra for taking debit/credit cards though.

What I dont get is those auto mechanic shops that don't take card. Thats just crazy! When something big goes wrong with your car and the bill is huge thats when cards save our necks and to not accept them is just bad for business.

 

[tf76]

Sole operator

Just get them to pay online into my bank account.






Regards,

 

[Martyn]

Up to now I've been taking cash, cheque, Paypal(online) probably in the ratios of 60%, 38%, 2%. I find cheques a pain so I've just got a card reader from IZettle that links via Bluetooth to my IPad so my cheques should be virtually nil.

 

[kwest]

Checks 80%
Cash 10%
Cards 10%

I say check or cash but I will accept cards if they have nothing else. I guess I am in a good area because I have only had two bounced checks in 8 years

 

[ComputerRepairTech]

I guess I am in a good area because I have only had two bounced checks in 8 years

2 in 8 years? i'd say good was an understatement.

 

[nlinecomputers]

I take Square but most of my clients are business clients and are Net 15. Before square I'd take Paypal but it was a PITA to have to go to a website and do it and end users didn't really trust it and a few even refused to do it. But I've never had anyone question the square reader. Most all said it was cool and was surprised I could do it with my phone but no one ever questioned if it was legitimate. I had lots of questions about Paypal as many don't use it. Past couple of years that hasn't been an issue any more but again the readers give everyone confidence.

Square and Paypal are both expensive to use per transaction but if you don't do a lot it will be the cheapest method. If you have high use of CC then you have to get your own Merchant account or get killed in transaction fees.

Square is easy to get an setup and the reader is free. You'd be a fool not to go that route starting out. Paypal and Intuit also have readers as well.

 

[RedFoxComp]

I only accept cheques from contracted business clients. Cheques are a PITA to deal with and if you accept them you're a prime candidate for being ripped off. Every time someone asks if I take cheques and I say no it makes me feel relieved, especially when it's a big job

 

[nightkingdoms]

I started accepting everything I could when I reorganized as an LLC in 2009. I started out with cash, check and PayPal. Where I was located at the time check was the dominate one, never had one bounce but the time to process was ridiculous (7-10+ days). I lived in a very remote area so I'd have to mail the checks to the bank. Very annoying.

Currently I accept cash, check, and online credit card via PayPal, Google Checkout or Stripe. Checks are processed electronically though my GoPayment account check addon with Intuit ($10/mo), credit cards by Square when in person.

Since I moved the values have changed from predominately checks to about 50% credit card, 30% online payment, 10% check, and 10% cash. Basically credit card became the dominate one. And for the online payments, BTW, I accept both credit cards and checks. Moving to a big city definitely makes a difference.

 

[nlinecomputers]

Any check under $1000 I can deposit via my phone camera. God I love technology.

 

[codegreen]

So it's my escape goat too.

This is my escape goat:

It's pretty fast, but not much cargo space.

I accept cheques for both business and residential, and I've never had a problem. Not accepting cheques around here would all but lock me out of the business market. I use Square for credit cards.

 

[phaZed]

I take cash, checks and credit cards with square. If the fees for square are too much then you are not charging enough if that eats up your profit margin!

Square and Paypal are both expensive to use per transaction but if you don't do a lot it will be the cheapest method. If you have high use of CC then you have to get your own Merchant account or get killed in transaction fees.

Not so, if you start doing that much volume square offers a $275 per month flat rate fee...

I signed up with checktrack with my bank (BB&T), so in the event that a check does bounce, my bank will pursue the funds and tacks on a $50 fee for the offender. Once the money is recovered from the deadbeat, They keep the $50 they charged, and I get 100% of what I should have got in the first place. I don't have to lift a finger or pay any extra for this protection. Check your bank and see if they offer a bounced check protection service.

 

[Xander]

I guess I am in a good area because I have only had two bounced checks in 8 years

2 in 8 years? i'd say good was an understatement.

I can top that. 4 in 12 years but 2 of those people told me before I knew about. The 3rd just needed me to wait until payday. The 4th (first chronologically) was the only one that took a little hunting down and she eventually paid up.

 

[dombooth]

I take cash, checks and credit cards with square. If the fees for square are too much then you are not charging enough if that eats up your profit margin!

I thought quite a bit about Square/iZettle but if I went to buy something, offered to pay by card then was offered a phone with something plugged into it to swipe my card I'd be running away!

Dom

 

[codegreen]

I thought quite a bit about Square/iZettle but if I went to buy something, offered to pay by card then was offered a phone with something plugged into it to swipe my card I'd be running away!

Really? My clients love it. I get lots of complements on it. However, I'm mobile. If I had a shop, I would get a traditional merchant account and card terminal.

 

[dombooth]

Really? My clients love it. I get lots of complements on it. However, I'm mobile. If I had a shop, I would get a traditional merchant account and card terminal.

Yep, even asked a few that wanted to pay by card what they thought of the idea and they said they wouldn't trust it.

And anyway, the cash machine is a 30 second walk.

Dom