Glad I take credit cards...

Word is out that I take CC's. The guys working the construction and gravel pits are really taking advantage of this, as most do not carry cash or very little. I have had a few pull in and ask for a dog, and then they see the credit card logo next to my window. Those $2 sales turned into $8+ sales, damn glad I have offer the service, and my customers are very happy!

Mike

Well that's cool.  How do you process them?  Wireless?  Are the fees steep?

I take only cash and think I need to add CC.

Dave

MIke
I run a full service restaurant and I put off accepting cc as long as I could (27 years)but finally relented and added cc about 18 months ago.  It really did not increase my sales but greatly reduced my profit because of the cc costs.  You will have the butthole who gets a cup of coffee and puts it on a cc.  U have to sign an agreement to not limit the amount that can be put on a cc so u are screwed.  The costs to me for the cc is unbelievable.

I recently added a concession trailer to out little business and I do not accept cc and will not add them because of the cost.  I suggest that u take a real close look at the first bill u get from the cc provider and I think u may rethink accepting cc for a $2 hotdog

Herman

I'm in a retail/service business and credit card fees take up to 25% of my profit, over $1000 a month in fees.    I'm considering requiring check/credit card only.  Keep in mind fees are going up more this month or next systemwide.

hbeaman


MIke
I run a full service restaurant and I put off accepting cc as long as I could (27 years)but finally relented and added cc about 18 months ago.  It really did not increase my sales but greatly reduced my profit because of the cc costs.  You will have the butthole who gets a cup of coffee and puts it on a cc.  U have to sign an agreement to not limit the amount that can be put on a cc so u are screwed.  The costs to me for the cc is unbelievable.

I recently added a concession trailer to out little business and I do not accept cc and will not add them because of the cost.  I suggest that u take a real close look at the first bill u get from the cc provider and I think u may rethink accepting cc for a $2 hotdog

Herman

I totally agree. The transaction fees and "discount" rate would be over 10% of the purchase price for transactions less than 5 bucks (based on a 50 cent transaction fee). And if you take credit cards, people will be more likely to use them even if they have the cash in their pocket.
 
A B&M restaurant pretty much is forced to accept credit cards, but a vending trailer or cart should avoid them like the plague IMO.
 
I'm glad it's working out for you Mike, but it definitely wouldn't work for me.

I deal with a company that employees 900 people, I take CASH only. There is a ATM machine 10 feet away, I sell food, not credit or the cost of taking credit. Its important for all small business, to watch any, and every, extra charge in their business. it all adds up to whos staying in business in the end...........................Bill

Why can't you say that there is a minimum purchase of, say, $5.00 to use a CC?
I know of several places in my area (Southeast MO) that do this.
 

pinballdude


Why can't you say that there is a minimum purchase of, say, $5.00 to use a CC?
I know of several places in my area (Southeast MO) that do this.
 

You can do that, but you have to shop around and negotiate otherwise you will be paying more than it's worth.
 
I personally would boost the $5.00 minimum to $10 or $15.

Set a service fee for accepting CC on orders for less than $10.   Or, all orders on the cart.  how many order does one get that are $30 or $40?  It could be waved for large orders.    ...... Processing fee plus a percentage, say 75 cents or $1.   Then it is the customer's choice. 

 ... If most of your sells are $8 to $15, you may be slightly behind on your CC cost, but the difference should reasonable & acceptable.  If your sells are small then you should be a little ahead on CC cost.

Remember not long ago, many business had two prices cash & CC.

One store we frequent in a northern Cincinnati suburb does not allow credit cards unless the purchase is $15 or more. It is an international deli run by an Eastern European family.

It is the only one I have notice in SW Ohio that has this policy but I am fairly sure there are others around.

edwmax


Set a service fee for accepting CC on orders for less than $10.   Or, all orders on the cart.  how many order does one get that are $30 or $40?  It could be waved for large orders.    ...... Processing fee plus a percentage, say 75 cents or $1.   Then it is the customer's choice. 

... If most of your sells are $8 to $15, you may be slightly behind on your CC cost, but the difference should reasonable & acceptable.  If your sells are small then you should be a little ahead on CC cost.

Remember not long ago, many business had two prices cash & CC.

Every merchant agreement that I've seen states that you cannot charge a service fee or "minimum" purchase. The people that do this are in violation of their merchant agreement. If someone calls to complain, their merchant account will probably be pulled. I know someone that this happened to. They had a $15 minimum charge. In my prior business, I offered a discount for cash instead of a service fee for credit. (probably still could've lost the merchant account)
 
But if you lose a merchant account, you can easily find another bank or processing service.

TrentonDog

edwmax


Set a service fee for accepting CC on orders for less than $10.   Or, all orders on the cart.  how many order does one get that are $30 or $40?  It could be waved for large orders.    ...... Processing fee plus a percentage, say 75 cents or $1.   Then it is the customer's choice. 

... If most of your sells are $8 to $15, you may be slightly behind on your CC cost, but the difference should reasonable & acceptable.  If your sells are small then you should be a little ahead on CC cost.

Remember not long ago, many business had two prices cash & CC.

Every merchant agreement that I've seen states that you cannot charge a service fee or "minimum" purchase. The people that do this are in violation of their merchant agreement. If someone calls to complain, their merchant account will probably be pulled. I know someone that this happened to. They had a $15 minimum charge. In my prior business, I offered a discount for cash instead of a service fee for credit. (probably still could've lost the merchant account)
 
But if you lose a merchant account, you can easily find another bank or processing service.

That's not in mine.  but I only have a 15 or 20 cent process fee plus 3% of ticket. I've had a merchant account for the past 15 years.

65% of my biz is done with CC's

TrentonDog
Every merchant agreement that I've seen states that you cannot charge a service fee or "minimum" purchase. The people that do this are in violation of their merchant agreement. If someone calls to complain, their merchant account will probably be pulled. I know someone that this happened to. They had a $15 minimum charge. In my prior business, I offered a discount for cash instead of a service fee for credit. (probably still could've lost the merchant account)

How about, "In order to enable us to keep providing credit card service, we request that you do not use your credit card for purchases under $10"? It worked for a couple of stores with whom I used to consult.

Paypal has come up with something in the last couple of years; a straight 10% with no per transaction fee for micropayments. Maybe places which specialize in under-$10 purchases can get some kind of micropayment deal?

Bart

My fee for the wireless machine are $55 a month with free supplies and a full replacement warranty if I run the thing over. The charges have been .03 a transaction to date. It is a new small small merchants account. I do my batch at night and the next day the money is in the bank. In my mind, when I get this gig down and find a busier spot, that this will pay for itself in spades.

Mike

localnet


My fee for the wireless machine are $55 a month with free supplies and a full replacement warranty if I run the thing over. The charges have been .03 a transaction to date. It is a new small small merchants account. I do my batch at night and the next day the money is in the bank. In my mind, when I get this gig down and find a busier spot, that this will pay for itself in spades.

Mike

Mike,  Why do you batch if you have a wireless?  Those rates sound good as long as you are doing over a few thousand a month.  What's you rate like for larger (e.g., catering order) and non-swipe transactions?

I've been taking credit cards for almost 2 years now.  And yeah, I'll get the occasional numbskull that will use his card to buy a coke.  That being said it ends up costing me $265 for about $6,000 worth of charges.   So that cost me about 4.3% for a customer service that I think is very valuable.  I do own my equipment and don't rent them.   I am in the food business, but I'm really in the customer service business.  Would I tell someone he can't use his card for a coke?  Nope.  Why?  Cause he may be back with his family or office next week and buy $25 dollars worth of stuff.  Would he come back if I told him he can't do business with me?   I do believe it is illegal to put minimums on credit card orders.  I think if you shop around you can find some Merchant Processors that are fairly inexpensive.  Do be aware that some companies will try and get you to sign a contract.  Avoid that if at all possible.  You don't want to be stuck for the next two years if you decide to get into another line of work.  That's my $.20 (which is about what it costs me for a $5 charge)

On the other hand your 4.3% would cost me 8600 this year.
My sales would have to increase by 25800 to cover it.
Yes I miss a few customer but not 8000. That's how many more customers I would need to make up the difference. Plus the labour to serve them and I don't want to work any harder if there's nothing in it for me.
I could just raise my prices .15 cents a customer I guess, but I will do that anyway, each year I have to raise my prices for product increases and I like to keep some of  that money for me..
I had debit when I started, I charged .50 under 5.00 and I still couldn't justify the equipment and charges.
When this was last debated here I was excited and priced it again, same result, to expensive. I have trained my customers to bring cash, If not where they can obtain cash.

As I said it's a customer service.  I am willing to spend that $8600 for that service.

You've got to do what works for you.
Just as long as you know it works both ways.
We're all in customer service but we all work with pennies, every one counts.

Everyone in business is in the customer service business, but that is second to your primary business function. We are all in the food service business first, and customer service running a close second. IMHO, a B&M sit down restaurant will need to take credit cards but a vending cart or trailer does not.

4.3% is a lot. Would you be OK with a 4.3% increase in your income taxes? If you work for someone, a 4.3% annual raise is doing pretty good nowadays.

Volume cures all ills, if a dogger is doing a good volume of business its easier to justify all the bells and whistles. Some of the doggers are making a very low sales volume, and sneaking by by the seat of their pants. I think everyone would agree if their volume and Ind ticket sales were higher, this would be much easier to accomplish..............Billyb

But if a dogger is doing a good volume of business, why would he want to give away 10% of his profit to the banks? (based on a .30 cent transaction fee on a 3 dollar purchase) I doubt a dogger would see an increase in sales because he could process credit cards, but his customers would certainly use their cards for their convenience. (and cash back rewards - out of YOUR pocket......)

BillyB


Volume cures all ills, if a dogger is doing a good volume of business its easier to justify all the bells and whistles. Some of the doggers are making a very low sales volume, and sneaking by by the seat of their pants. I think everyone would agree if their volume and Ind ticket sales were higher, this would be much easier to accomplish..............Billyb

Nah Billy, I still want to keep all the money.

Ice Cream Man
 

........ I still want to keep all the money.

Right on, right on, right on...............
 
I would never ask a vending cart or trailer, or B&M "fast food" place if they took plastic. I can't believe places like McD's now accept credit cards. So I guess Billy is right about the volume, but very few of us do the volume of sales of a McD's.
 
 
 

Rootsman

localnet


My fee for the wireless machine are $55 a month with free supplies and a full replacement warranty if I run the thing over. The charges have been .03 a transaction to date. It is a new small small merchants account. I do my batch at night and the next day the money is in the bank. In my mind, when I get this gig down and find a busier spot, that this will pay for itself in spades.

Mike

Mike,  Why do you batch if you have a wireless?  Those rates sound good as long as you are doing over a few thousand a month.  What's you rate like for larger (e.g., catering order) and non-swipe transactions?

You have to do a batch at the end of the day, or you do not get your money, just like a B&M. And my money has been there every morning. The non-swipe charge is... off the top of my head .18 or .20. As far as the rate for larger purchases... off of the top of my head again, is 1.9%. It was the best I could find and they deal direct through my bank. The manager at my bank has a self employed husband who uses this same outfit. She said she could not find anything better rate wise. It is a special deal through my bank, TCF and First Data. In my research, I could not find anyone that beat their rates.

Mike

TrentonDog


But if a dogger is doing a good volume of business, why would he want to give away 10% of his profit to the banks? (based on a .30 cent transaction fee on a 3 dollar purchase) I doubt a dogger would see an increase in sales because he could process credit cards, but his customers would certainly use their cards for their convenience. (and cash back rewards - out of YOUR pocket......)

Follow in Bikerjims foot steps and you will understand why he takes CC. If you read my post it says, if the Dogger has a good volume, and higher ticket sales, then that will yield to more bells and whistles. If the Dogger is doing a large volume he is dealing with more people, and may be a good idea to offer a CC convenience to his/her customer. If you think small, you will always be small, like Jim said customer service, convenience to the customer, respect for your customers needs....................BillyB

BillyB

TrentonDog


But if a dogger is doing a good volume of business, why would he want to give away 10% of his profit to the banks? (based on a .30 cent transaction fee on a 3 dollar purchase) I doubt a dogger would see an increase in sales because he could process credit cards, but his customers would certainly use their cards for their convenience. (and cash back rewards - out of YOUR pocket......)

Follow in Bikerjims foot steps and you will understand why he takes CC. If you read my post it says, if the Dogger has a good volume, and higher ticket sales, then that will yield to more bells and whistles. If the Dogger is doing a large volume he is dealing with more people, and may be a good idea to offer a CC convenience to his/her customer. If you think small, you will always be small, like Jim said customer service, convenience to the customer, respect for your customers needs....................BillyB

Bikerjim and I have two different businesses. I sell hot dogs, not BBQ, or anything else that is high dollar. A couple of dogs a drink and maybe a bag of chips is my typical sale. I understand that I own a hot dog cart and not anything bigger than that. If it grows into a full blown vending trailer selling more upscale items, I may consider taking credit cards if it makes good business sense. But at that point, I am not a "dogger" anymore. "high ticket sales" and "dogger" do not mix. And it's not about "thinking small", it's about having realistic expectations. And the expectation that accepting plastic at a hot dog stand will result in more money in your pocket is ridiculous. I oubt it'll help at a "full service" trailer either, I'll let you know when I get there...........
 
Anyone take AmEx or Discover with their higher fees?
 
 
 
 

We don't take plastic.  We also don't use plastic (in our case, debit) unless we absolutely have to.  The last hotel that I worked at had a 3 month backlog of batch files.  If the batch files don't go thru for what ever reason,  you don't get your money.  The hotel manager keeps calling the "help" desk who's no help.  Finally calls the bank who is supposed to be handling the account (the one that bills them every month).  Guess what, the hotel "wasn't a customer".  Needless to say, things were getting nasty when I left there. And this wasn't a small Mom & Pop outfit.  Some of you may have even heard of the chain... Red Roof Inns.  So if an outfit that large gets the run around from the banks, what do you think you'll get if you have problems with your transactions going thru.

BTW, yes, we do want to stay small.  We operate a cash business. We pay for our supplies with cash unless I buy online.  I pay for my taxes with an electronic check.  My only problem with having to use the debit card was our gas consumption. We buy at Sam's Clubs when possible and they only take plastic.  But I have discovered that they will take the "gift cards" that you buy inside the Club.  So now we can fill that 90 gallon diesel tank on the skoolie without  the bank shutting down my debit card for potential fraud... seems buying fuel in 3 states in one day is enough to trip off the fraud alerts. And they put a hold on my daughters card after she filled up 3 vehicles in GA (it was only 150 gallons of fuel).  Didn't find out about it until we hit TX.  I just don't want the tax idiots to know how much $$ we do or don't go thru.

I'll let Bikerjim the (BBQ man) explain this one, Can't wait to stop at his cart for some of those famous BBQ Rattlesnake ribs, they maybe small, but they are tasty,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,