To Accept Credit Cards or Not?


#1

We have been accepting credits cards (cc) for about 8-9 years now on roof repairs and gutters only in spite of the fee. However, due to the fee, we do not offer nor accept them on roof replacements. I can’t see giving up that profit to a cc company.

How do you handle a $4K, 5K, 6K or higher job when being paid by a cc? Especially when it is not mentioned until the job is finished and you are ready to collect.

Do you accept them and “bite the bullet”? Accept them and pass the fee to the client? Or simply refuse them?

How about a “disclaimer” about cc on your estimate/proposal form?

Would appreciate your feedback.

Regards,
Matt


#2

We use a disclaimer and pass on that fee. In my opinion it is not wise to use a cc but if they want to use it for more than $500.00 we charge an additional 3% to cover the fee. If you f=don’t have the disclaimer and they mention it afterwards i guess u have to bite the bullet.


#3

be very careful!!! I believe it may be illegal to charge extra. you are supposed to build it into the price up front. I was alays told that charging a “FEE” is illegal.


#4

I think credit card machines are great and I think it gives a company more customer base when offered. Ive had one for a few months and I find it profitable even on large jobs the pecentage is like 1.7 or so. If I have a job say 4,000 that would only be like 70 bucks,thats worth having the option to offer and if Im not mistaken you should be able to write this off as expense on your taxes.Hope my opinion benefits you in some way. I could turn you on to my provider if youd like.


#5

I was asked once if I took credit cards. I had to tell the pilot that I needed a check.

Read a book or watch some episodes of the Dave Ramsey show and you’ll learn right away about credit cards.

Can honestly say since reading his books been 100% credit card debt free for almost a year, it’s a great feeling.


#6

Hi,

We also offer 6 months same as cash.

I have to laugh everytime someone tells me that “you can right that off as a deduction”.

Enough deductions and I do not get a paycheck. Trying to keep expenses down is where the profit comes in.

It is proven fact that you get more profitable business when you offer credit.

I have been debt free from credit cards for years.


#7

First of all, thanks for all ofthe feedback its been great.

If I know in advance they are paying with a cc, I can react. However, should I be asking during/after the close how are they going to pay for the job? I think that might be considered “pushy”.

I like the “written” disclaimer but don’t want to get myself in trouble, either.

I agree cc do open doors for me which otherwise would remain closed. Having said that, I do not want to decline them in the future if at all possible.
Matt


#8

some peole who are financially better off would rather put it on a credit card to earn miles. So i can be $500 more and they still pick me to get a free trip to mexico.


#9

Everywhere i worked i was told to add 3% if they wanted to use a credit card. NOt sure if it is or is not legal but i did what i was told. The customers i delt with that did use a credit card understood and all was well. Normally in my pitch i would mention it and it would be out in the open. I follow up with nothing is free and i have to pass the cost to you since it is not built into the bid. In the motor city just adding extra money in for whatever reason does not work. I was always up front with my customers and never had a problem. I prefered the CC since i did not have to tote around a a couple of checks worth a bunch. Had one guy pay cash on a 15000 dolalr roof for whatever reason. Was not comfortable with that.


#10

I put on my estimates

mc-visa-dc-ax

a service fee may apply

I will add 1-3% if they want to use on a job more than $500.00. I know of other people who do this. If it is illegal, then the credit card company can kiss my ass.


#11

Once again you have given me some good, workable,approaches as to how to deal with this situation. I appreciate it.
Take Care,
Matt


#12

Around here some gas stations put a fee on Credit less than $5.00. I’m sure $5,000 is not different. But I don’t know if its illegal, but they do it.

Nothing wrong with knowing where the people you will be working for are coming from.


#13

In Ohio it is illegal to “ask” for an additional fee above and beyond the contract price to pay with a credit card. Just list the higher “credit card” price first and then right below that list a discounted price for paying with CASH or CHECK on the day of completion. It works great and keeps you out of trouble too. It also helps you actually get paid the day it’s done.


#14

in my town 2 gas stations have a price 10 cents more a gallon when you use a cc. i relay think that is illegal.


#15

Thanks TP for the great tip!
Regards,
Matt


#16

Illegal. Legal. Smeagol.

Assuming face to face with the customer, have a contract created where the option is given at the top to fill out your name, address, HOW THE WORK IS PAID FOR (give the customer all options and ask for an “X” next to the customer’s choice), new roof or reoof, city, etc.
Also a good place to mention the material-labor costs and scheduling those payments. then the fee can be integrated into the work order without the mention of “the fee”. If the customer isn’t sure, charge the fee and in good moral standing, refund the difference to his final bill if customer is choosing another method of payment besides the credit card. Call it a refund against your labor or some such and don’t mention the card at all.
This worked for me when I was roofing on my own and it was well worth the extra money for the forms.
Credit cards are a must in today’s society although we as a country would be much better off without them.
Good luck in your business ventures.
bmcroofer@gmail.com


#17

As a consumer –

I have no problem with somebody asking me how I will pay. You already know if you can afford it or not and would have to charge it going into it - as the homeowner. Just tell the homeowner there is a fee up front. We do not generally sell to people at my current job that need to pay with credit card, however we just tell them on the quote if they do, then there is a 3% charge. It isn’t illegal for us to do that, but by state it might vary.

Whether it is a good idea for a h/o to charge it or not is not for the roofer to worry about. Whoever said something about people wanting to charge and earn miles (or rebates) makes a good point. Back when we sold our material direct people did that all the time. New roof might equal ticket to visit grandma or whatever.

I think accepting credit cards is a great idea.


#18

[quote=“bmcroofer”]Illegal. Legal. Smeagol.

Assuming face to face with the customer, have a contract created where the option is given at the top to fill out your name, address, HOW THE WORK IS PAID FOR (give the customer all options and ask for an “X” next to the customer’s choice), new roof or reoof, city, etc.
Also a good place to mention the material-labor costs and scheduling those payments. then the fee can be integrated into the work order without the mention of “the fee”. If the customer isn’t sure, charge the fee and in good moral standing, refund the difference to his final bill if customer is choosing another method of payment besides the credit card. Call it a refund against your labor or some such and don’t mention the card at all.
This worked for me when I was roofing on my own and it was well worth the extra money for the forms.
Credit cards are a must in today’s society although we as a country would be much better off without them.
Good luck in your business ventures.
bmcroofer@gmail.com[/quote]

I dont accept cc’s yet but the above is a great way to work this into the contract. If and when I do start to accept them, I’m gonna go this route.


#19

I used to have a cc service that charged me $44 a monthe plus 1.5% after hardly using it for collecting payment, I canceled after 2 years. I still accept credit cards, when a customer wants to pay I just call my supplier and have them aply that payment to my account. No fees no extra charge, just a customer using thier preferred payment. I know this wouldn’t work if they paid by cc all the time but when only 1 out of every 15 jobs pay by cc, this works very welland allows me the option of accepting credit cards.


#20

From a Google search I came up with the following:

The following list is the states that have laws against CC surcharges:

California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, Texas.

Regardless of the legality, all CC companies have rules against any surcharges for using a CC:

Before using this information, please confirm for yourself whether it is or is not correct.