Charge for processing fees?

[Jane Mason]

Hey everyone.
I have finally been able to start accepting credit cards but I have a question about the processing fees. Do you make your clients pay this charge or do you just take the hit? My fee is ridiculous but not sure if it's worth taking the hit for the fee in order to be able to have the sale.
Any thoughts?
Thanks
j

 

[taggyboy]

When we first opened we didn't accept credit cards, only debit. Partly due to fees, plus our renter used our card machine and we weren't going to pick up the fees for that as well. Then we capped it at a minimum spend. However, we just absorb it now as its only us that use the reader.

Maybe put a minimum spend for credit cards. We used to have them using a cc for a £7 eyebrow wax!

 

[Maxine77]

We charge 50p for any payments under £15, clients don't mind paying it.

 

[stephanie_87]

I may be wrong but I'm pretty sure it is illegally to push the charge onto the client. You can put your prices up to cover the cost but you cannot ask a client to pay X amount per transaction when using a credit card. If you negotiate rates properly with the provider then the amount charges cost you will be minimal compared to the extra money spent by clients on products and services they never intended to have and just "stick it on the credit card"

 

[Lynne Baker]

Contact card compliance services. Their transaction charges are much lower than many other providers.

 

[Elaine143a]

Maybe put a minimum spend for credit cards. We used to have them using a cc for a £7 eyebrow wax!

As much as that! I had people trying to pay £3 for sunbed on cc! My minimum was £10 and there was a very large notice stating this. Luckily Lloyds bank was next door and had several cash machines, so anyone without cash was sent next door to get some.

Some very regular clients slipped through the net for £7.95 eyebrow wax, but never newbies, and never for £3!

 

[taggyboy]

As much as that! I had people trying to pay £3 for sunbed on cc! My minimum was £10 and there was a very large notice stating this. Luckily Lloyds bank was next door and had several cash machines, so anyone without cash was sent next door to get some.

Some very regular clients slipped through the net for £7.95 eyebrow wax, but never newbies, and never for £3!

Hi Elaine, my goodness me by the time you paid the fees you must have been left with nothing!

We are lucky as well, as next door to a cash machine that is free to use. We also had a notice of minimum spend.

 

[Jane Mason]

When we first opened we didn't accept credit cards, only debit. Partly due to fees, plus our renter used our card machine and we weren't going to pick up the fees for that as well. Then we capped it at a minimum spend. However, we just absorb it now as its only us that use the reader.

Maybe put a minimum spend for credit cards. We used to have them using a cc for a £7 eyebrow wax!

What verbage do you use in your business to say this? I mean, do you write, "a minimum of x must be spent in order to use credit cards" or what terms do you use?

(I hope that made sense lol)

 

[Blue Rose]

In my agreement I have a minimum transaction fee & most of the time my fees are never as much as that anyway so I now let clients, whatever their spend, pay by card. Keeps them happy
Not sure I'd be chuffed at having to pay for the privelige (sp?) of paying by card.

 

[Jane Mason]

I was thinking the same thing. The cheapest thing on my menu is £6 so it's not a big deal. I would be really annoyed if I was asked to pay more just to use a card. If they're happy, then they'll more than likely return and spend me.

 

[AmeliaR]

I was thinking about getting a card machine, I was going to transfer the fees to the client by giving them the option of paying by card and charging them £1 or 50p. I think I would pay an extra £1 to use my card! There is a cash machine over the road so they could go get cash but most customers no to bring cash!

 

[Blue Rose]

I was thinking about getting a card machine, I was going to transfer the fees to the client by giving them the option of paying by card and charging them £1 or 50p. I think I would pay an extra £1 to use my card! There is a cash machine over the road so they could go get cash but most customers no to bring cash!

£1 more? Wow, that's a HUGE percentage for a smaller priced treatment. I'd pay grudgingly but you wouldn't see me again. I like to know that the price published is the price I will pay.

Look at how many people moan at Ryanair. What they think is £20 ends up costing waaaay more than that. Transparency is the key for me

 

[Lynne Baker]

Good grief!
You simply can't charge the client for paying with a card!
Well, you can, but as has been said before, don't expect to see them again.
I'm really not sure what the issue here is; there are LOADS of card processors that won't charge you a fortune. CCS is just one.
Credit Card Processing - We Help You Accept Credit Cards | Credit Card Processing from CCS Ltd

Before you dismiss the notion out of hand at least have a PROPER look at the different providers, and don't go on hearsay. Everybody will have a different tale to tell.
Few of you will need wireless ones; fixed line ones are cheaper.

 

[AmeliaR]

It's not like your forcing them! They have the option to pay cash? As said all my clients no that I don't currently take card so they do bring cash! I would like to give them the option to pay card but would cost me per trans and a monthly fee! So they can pay card of they want the extra charge or bring cash like they always do? I wouldn't have a problem paying £1! Those little cash machines you have to pay nearly £3 to take cash out of!

 

[Tomme]

My local shop has a £5 minimum spend and 50p charge for under that for ANY kind of card. Saying that if I'm in a supermarket I've been to self serve and put a packet of chewing gum through on a card. Xoxo

 

[angelina221]

It's not like your forcing them! They have the option to pay cash? As said all my clients no that I don't currently take card so they do bring cash! I would like to give them the option to pay card but would cost me per trans and a monthly fee! So they can pay card of they want the extra charge or bring cash like they always do? I wouldn't have a problem paying £1! Those little cash machines you have to pay nearly £3 to take cash out of!

So what happens if you get your card machine and nobody wants to pay the extra transaction charge?
If everyone pays cash then you are getting charged a monthly fee for a machine you will not be using.
The advantage to having a machine is that people will buy more. I've lost count of the amount of times that a client has paid for a treatment with cash and then bought some products with their card cos they haven't got enough cash on them. The card machine will pay for itself.
By all means put a minimum spend on but you can't really expect clients to pay for the privilege of using a card.

 

[Lynne Baker]

My client average spend is £127. How many people do you know that carry around that amount of cash?
I run a professional business, and people expect to be able to pay by card. My yummy mummies want to use their Amex card so they can get their airmiles. I want high net worth clients. Even our local award winning butcher has had to concede and start taking cards.
Do not put obstacles in front of your clients!

 

[Tomme]

My client average spend is £127. How many people do you know that carry around that amount of cash?
I run a professional business, and people expect to be able to pay by card. My yummy mummies want to use their Amex card so they can get their airmiles. I want high net worth clients. Even our local award winning butcher has had to concede and start taking cards.
Do not put obstacles in front of your clients!

£127 or £10 I don't carry cash much, maybe loose change that I've had from tips. Because I lose my card and cash often I prefer to use only card as if its lost I only lost plastic, it can be replaced, I lose cash too bad for me.
I'm now using a phone case that's also a wallet so hopefully I won't lose my items as much. But I see where you are with people don't carry cash no more xoxo

 

[jojo@tranquil]

Whichever way your clients pay you still have to pay charges for banking cash &cheques. Unless you have free banking ... My clients definitely spend more since I had the card terminal.