Credit Card Customers, Is It Worth It?

[village idiot]

In this month of October, I have lost THREE boiler replacement jobs simply because customers say they can't afford to pay cash but are willing to pay me by Credit Card. (Yesterday I lost another one in Bromly). I have never been tempted to accept credit card payments, but am beginning to wonder if taking credit card payments is the way forward?

 

[rocketmanbkk]

Maybe it is for custards if that's the only way they can pay & you want the job

Maybe just use as last resort

 

[hammers4spanner]

If they are paying on a card then i don't want the work off them simples.

 

[rocketmanbkk]

I hear ya

 

[tamz]

You have to move with the times and most people can't afford big purchaces without some kind of credit.
I bought one of those payleven things from screwfix for about £50 but there are a couple of others out there. It bluetooths to your phone and is easy to use Does the job and the money is in your bank a couple of days later. Takes a few days to set up as they have to run a couple of checks and send you a nominal amount and you tell them how much it was etc.
The charges vary from 2.75% to 1.5% depending on how much you put through it in a month. I add on 2.5% if they pay by card and just explain it like if they book a holiday on the internet the card charges are added. Nobody has moaned about it.

 

[village idiot]

Thanks Tamz, but I'm not so sure I want to go down the CC route while I'm still a 1-man band outfit. I think hammers reasoning are the way I see it for the moment. For now, I will let the CC jobs slip through my fingers.

 

[tamz]

Its good to put things through the books now and again 😉

 

[rpm]

When given the 3 options I reckon it`s around ......

10% pay cash
15% pay with cheque
75% pay with card
Bills are between £100 to £750.

 

[newcastle phill]

Thanks Tamz, but I'm not so sure I want to go down the CC route while I'm still a 1-man band outfit. I think hammers reasoning are the way I see it for the moment. For now, I will let the CC jobs slip through my fingers.

I use worldpay zinc. Very similar to payleven and i zettle.

There are no standing charges and it is easy to set up. They merely take a commision per sale of 2.75% (last time I checked).
The customer pays that as i add it on.
Never had any drama and other than keeping the batteries topped up works as it should

 

[village idiot]

Its good to put things through the books now and again 😉

Well, 90% of my receipts from customers are direct bank transfers (method I recomend and encourage them to use) with all materials being paid in advance of work being done except for small jobs. I even ask CP12 payments to be transfered directly to my bank account.
5-7% pay by cheque and only a small minority pay by cash. I will always ask that a bank transfer is made as it shows an ''audit trail''. Failing that I will take cheque. I only accept cash as a last resort. I will not refuse to accept payment if customer says all they have is cash.
Where labour is over £500, I request payment in stages

 

[newcastle phill]

Books - what books.
The only place for a book is a library.

 

[Ray Stafford]

In this month of October, I have lost THREE boiler replacement jobs simply because customers say they can't afford to pay cash but are willing to pay me by Credit Card. (Yesterday I lost another one in Bromly). I have never been tempted to accept credit card payments, but am beginning to wonder if taking credit card payments is the way forward?

It depends. If you still have plenty of work without these three boiler changes, then you can afford to stick to your current policy.

However, if you are losing money because of it, a wise man would reconsider his position.

There's nothing inherently good or bad about one method of payment over another.

 

[julesverne]

Credit cards are easy i get them to pay using paypal and add the charge on. Although as with any credit card you have to be wary of chargebacks.

 

[Masood]

If they are paying on a card then i don't want the work off them simples.

Why? Seriously, interested in your reasoning. I'm a one-man band and been taking cards for a couple of years. Customers love it as it's convenient. I don't take cheques any more.

 

[hammers4spanner]

Nor do I gets paid straight into my bank.

 

[hammers4spanner]

even more convenient when they just dump it into your bank via a phone app

 

[ShaunCorbs]

even more convenient when they just dump it into your bank via a phone app

aslong as you have Internet 😀

 

[hammers4spanner]

if they don't have the net then they are usually old which means cash payment

 

[tamz]

There's nothing inherently good or bad about one method of payment over another.

Cash is king but you spend it on shyte ........as not to leave an audit trail lol

 

[tamz]

even more convenient when they just dump it into your bank via a phone app

The wee card terminals work through an app too so yer halfway there. Its just another string to your bow and the 50 quid cost of it is well covered on the 1st job.