Accept or not to accept credit cards?

[Nature's Way]

Have just recently started accepting credit cards, and had problems my first time recieving my money from the company I am signed up with. First, they told me within 24 hours the money would be in my business account, then 72 hours, and now I still have not recieved the deposit even though the transaction was cleared through my customers account and an approval # given over a week ago. Now, I have upset workers, cause I can't pay until credit card company does the deposit. How long shall I wait, and how many calls do I have to make to them to get some action. Any of you had this problem?? I kinda just like old fashioned check or cash. This really stinks!!!!

 

[NeTree]

I take cards, money is always there within 2 biz days.

You just have a lousy processor.

 

[begleytree]

I take them through my bank, but I don't do enough cards (maybe 3 total?) to make a processor with a slightly lower rate worth my while. I steer my customers towards checks, no fees that way. small town, most folks still like to do biz with cash
-Ralph

 

[Stumper]

I've never had a problem getting the cards processed and the money in my account-but taking credit cards has been a losing proposition for me and I will not be continueing to do so(except through PayPal if someone is desperate)

 

[Ekka]

WTF sort of banking system you got over there, I love credit cards.

If we run them thru our terminal by 6.00pm we got the dough in our bank the next day ... been like that for years. I actually advertise for credit card payments, they're a guaranteed thing better than a check. You get an authorization number and money in your bank the next day ... even on weekends. And you don't have to go to the bank!

 

[begleytree]

Ekka, it's not really the banking system, its the card systems. as of late, my friends in other buisnesses that have to accept cards -ie retail, have spoke of problems since the system is changing, going to satalite, upping the fees from @ 3% to @ 7%, purchasing new equipment, and processors really only wanting to deal with companies running greater than $10K a month. It'll get hammered out eventually. Part of the problem is the debit check cards, more traffic on the system, problems with streamlining the system upgrades to handle the traffic.
Not firsthand info, just what my friends are talking about these days.
-Ralph

 

[Tree Wizard]

I'm with EKKA - everything we enter through our terminal gets swept into our bank account at 1:00 AM the following day. Costs us about 1.75%. We bought our terminal from our bank and processing is done by our bank. Also have been doing it for years.

Nature's Way - if you can't pay your employees because a credit card payment hasn't cleared yet, you've got bigger problems than the credit card processing.

 

[vharrison2]

Wow 1.75% That is cheap. We pay around 3%

 

[Newfie]

Nature's Way - if you can't pay your employees because a credit card payment hasn't cleared yet, you've got bigger problems than the credit card processing.

TOO true.

 

[Nature's Way]

hey tree wizard, you own your own small business, or are you working for someone else? I am not a big company, my workers respect me, and know that they have always got paid when the check hits the bank. Don't have any problems here guy. Residential work don't get you rich! Thought that I would try a new acceptance of payment and it let me down. Lots of business expenses, and high gas prices don't help, and I should not have to take money from another job to pay them. Glad that I have good workers that understand. Sorry u don't.

 

[begleytree]

Sorry, We disagree. The employees pay comes first, no matter what job it is off of. Hel*, I worked 3 days on a high school job this week to get it done for a project for them, only to find out the check guy won't be back 'till tuesday. thurs and friday work made payroll and paid the gas bill at the station. I wait 'till tuesday for pay, not them. You treat your help that way, they won't be your help for long. Thats as long as they don't have problems preventing them from finding another job.
I just don't get that you make pay from other jobs, yet won't pay the men out of that, they have to wait. Not cool, Man
-Ralph

 

[teamtree]

I had the ability to accept cards for two years, just to do work for the US Corp of Engineers. Maybe one or two customers pay with card in my area. I like the idea but can't get people to use it.

 

[Tree Wizard]

Hey, Nature's Way. I own my own business. My employees get paid every Thursday for the previous week. So what are you doing? Paying yours a percentage of the job? Paying cash under the table so you don't have taxes and Workman's Comp to worry about? There is money to be made in residential tree work - may not get super rich but "the tree business has been very, very good to me" and my employees.

The best way to handle credit cards is through your bank. You will get a lower rate than the "credit card processing firms" offer and it will clear quicker. Before we got the terminal in our office we deposited credit card slips (after calling in for an approval) - they cleared in 2 days.

 

[Nature's Way]

No, none of the above. I am legit and I pay my taxes. Workers have always understood the business policy that they get paid as soon as customers paid and never minded. They still don't, and are not upset with me, they are upset that the credit card company is not doing what they promised. I am not a big company, very small, and business has been incredibly slow around here for some reason. Business would probably be better if there were not so many cut throats out there and people working that are not legit working out of the back of a pick up truck. They work too cheap and make it difficult. I could sit here all day and give excuses, but I am not going too. Wish I had it as good as you guys. Cutting through all the crap here, I understand what you are saying and sometimes I just feel like hanging it up and just working for someone else because of all the responsibilities and pressures, but don't want to do that. I would rather just hang in there, because ups and downs are expected with this type of business, and besides my workers do have faith in me. To all of you others that have replied, thanks so much for your advice, I plan on setting it up through my bank, instead of using a third party that I have never heard of. The whole point here is that I have had my workers for a long time and one mishap does not mean that I am running a bad business and don't know what I am doing. Sorry to dissappoint a few of you. Basically, I wrote this thread to find out if what the cc company is doing is right and if any of you have had this problem, not to cut on me. Please put an end to a bad thread. Thank you.

 

[Treeman14]

Definitely find a new processor. There is no reason it should take any more than 2 to 3 days to get your money deposited. If you use Quikbooks, they offer a reasonable credit card service and its integrated with their software.

BTW, I too think its bad form to not pay your employees on a regular basis. I understand that eventually they get their money, its not like you're stiffing them. However, most workers in this business live from paycheck to paycheck and cannot afford to wait for their money. If your employees are OK with this arrangement, that's cool. They obviously trust you and you have a solid relationship with them. Kudos!

PS, I recall many times that I went for several weeks without paying myself and often had to borrow money just to make payroll. I'm pretty sure most of my employees would not be so congenial about my financial problems.

 

[diltree]

I'm with EKKA - everything we enter through our terminal gets swept into our bank account at 1:00 AM the following day. Costs us about 1.75%. We bought our terminal from our bank and processing is done by our bank. Also have been doing it for years.

Nature's Way - if you can't pay your employees because a credit card payment hasn't cleared yet, you've got bigger problems than the credit card processing.

I agree with wiz...if you are in business and you respect your employees, you should have them on payroll, not only so they have the security of a weekly paycheck, but also if they ever do get hurt, the Workman's comp claim would go through. You can carry comp, but the ins. company will not payout for a guy that is not on the books. The payment by the credit card company is your problem; it is not cool to make it your employees problem.

 

[John Paul Sanborn]

Respect is one thing, but then there is the law. You cannot withhold a persons pay and must do it on a regular cycle.

All it will take is one disgruntled worker to call labor relations and you're up to your neck in problems. I had an associate who did not beleive in paying OT, things would "balance out". Then one guy called in after heated argument.

The4y tore through his books and found all the under table "tips" then hit him for back taxes on top of the labor violations. He had to pay several $k in fines and get an outside accountant.

 

[diltree]

Good point

 

[stehansen]

I don't see the advantage, I only get asked about once a year on average.

 

[okietreedude1]

I take credit cards for my arborist business and will also for my soon to be tree bus.

If I put the transaction throught the system before 5 pm, its that day. After 5 and its the next.

However too thought, I dont have any employees to worry about. I will say if I worked for you, I would expect a 'regular' check. I think if you are only paying w/ you are paid by the customer, as long as they pay CASH (this doesnt include checks), that may be fine. But you need to put your pay in the bank and save it for the times as you describe of having to wait for the CC comp to fork over the cash.

One more suggestion, go talk to your banker. there may be a ligitimate reason you dont have your money yet. Each bank is different in their payment of funds. Yours may be waiting payment from the CC comp b4 putting the $ in your acct. Mine doesnt do that.