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Old 01-21-2009, 10:21 AM   #1
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Any thoughts on contractors accepting credit cards?


Does accepting credit cards help get work you might not get otherwise ? I'm just a carpenter contractor trying to get more work in this economy..I work by myself and my jobs range from $300 - $1500...Any thoughts, advice, or experiences ?

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Old 01-21-2009, 10:55 AM   #2
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Any thoughts on contractors accepting credit cards?


Definitely a good move if you can cover the cost in your pricing and go along with a little paperwork.

Many people would rather use a credit card than pay by check or cash because of bonus poits from the credit card issuer.

My son bought a Chev Tahoe and put it on a credit card. He works for a bank and got a loan before getting the CC bill and paid it off immediately. He got about 35,000 points, which went a long way on the family vacation. - The dealer did not like to see him pull out a credit card since they did not anticipate it, but it was that or not selling the car.

I put everything on my credit card that I can instead of paying immediately. This give me an extra month plus the points. I never pay interest. Some things I do this with are car insurance, utilities, rubbish removal, cell phone and cable/internet. Electronics makes it easier and I save on stamps too.

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Old 01-21-2009, 12:13 PM   #3
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Any thoughts on contractors accepting credit cards?


Here are some reasons not to take credit cards:
- One time costs to you: application fee, setup fee, hardware fee, security deposit
- Ongoing costs to you: Discount rate fee (fixed percentage of the transaction from 1-6% depending on the CC), per transaction fee, auth fee, monthly fee, monthly minimum fee.

Discount rate fee is the most troublesome. On a $5000 job it would range from $50-300 out of your pocket. Some merchants charge this to the customer, but smart customers will not want to pay the fee for the 'benefit' of using a card.

If you can handle the overhead - go for it. But make sure you know what you are getting into.
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Old 01-21-2009, 12:23 PM   #4
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Any thoughts on contractors accepting credit cards?


Maybe browse around at http://www.contractortalk.com to see what the guys there do and how they handle this.
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Old 01-21-2009, 01:07 PM   #5
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Any thoughts on contractors accepting credit cards?


good advice Angus.

If it increases your close rate, or makes the jobs bigger (which credit always can do) and you can take a bit of a hit on margins, then there is a reason to do it.
If you cannot take advantage of it, then it's a no go.
Not only do you need to be able to take credit you also have to SELL IT!
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Old 01-21-2009, 02:05 PM   #6
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Any thoughts on contractors accepting credit cards?


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Originally Posted by angus242 View Post
Maybe browse around at http://www.contractortalk.com to see what the guys there do and how they handle this.
I found out all I needed to know with a search there..Thanx for the link..
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Old 01-21-2009, 11:02 PM   #7
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Any thoughts on contractors accepting credit cards?


Shop around for merchant services too. There are deals to be had.

I accept CC's through PayPal. Costs me 3%. No other fess. I also have a PayPal preferred debit card and get 1.5% cash back every time I use it, so that helps offset the cost.
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Old 11-05-2009, 12:23 PM   #8
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Any thoughts on contractors accepting credit cards?


My clients love paying me through PayPal which works out just fine for me. I don't have to wait for checks to clear and it is well worth giving up the transaction fee to have the near immediate cashflow. I also use their debit card. At times I have international color consulting clients. PayPal seems to be the safest, fastest and quickest way to move money internationally to me too.

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Old 11-05-2009, 01:28 PM   #9
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Any thoughts on contractors accepting credit cards?


Raise your price 5% and offer a cash discount.

Just realized this post is almost a year old, maybe the OP will let us know what he did.
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Old 11-06-2009, 03:49 PM   #10
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Any thoughts on contractors accepting credit cards?


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Old 11-06-2009, 04:28 PM   #11
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