Charging for Card Payments

[Katykitten]

Do any geeks charge extra to clients paying by card to cover the cost of the banks transaction fee?

With the deal I'm on now with, I get charged a flat fee of 25p per transaction for people who pay with debit cards but I get charged 2% on transactions made with a credit card

I never really gave it much thought but since lately we have had a lot of people paying by credit card for our more expensive treatments like body wraps etc, 2% is a lot to be charged imo and so was just throwing the idea around of charging clients an extra 50p (e.g) to try help recover my costs a little, we all know that every little helps at the moment

Anyone's opinions would be much appreciated!! As a customer would being charged and extra 50p for using your credit card put you off the whole salon, or would you just use your debit card instead (i won't charge for this) and think nothing of it

xxxxx

 

[Sparklepink]

i dotn think you can charge for debit card transactions you have to incur the cost

i add an extra £1 per credit card transaction to cover the costs

hth

Jess
xox

 

[Lynne Baker]

I think you have to weigh up the cost of the transaction against the cost of not getting the business. Personally I don't charge for any card transactions; how many other businesses charge you as a customer?

 

[pure]

I agree with Calla. I don't charge extra for a card payment and I honestly wouldn't be too impressed if I went to my hairdressers, for example, and they charged me extra for the privilege of paying them!

 

[marioned]

Travel agents and flight companies usually charge extra for card payment, and this can work out quite expensive. Don't now how it would o down in a saln though. As a client, I'd probably just use my debit card instead, so wouldn't make a difference to me. xx

 

[bombini]

I would not charge the client. A lot of people use credit cards so they can get points, cashback etc or they want it on credit lol it wouldn't stop me from using my card but I would moan about it !

The hair salon has just started charging 50p per transaction on ALL card payments and it didn't go down well with a lot of clients, quite a few complained to me about it.

I hardly ever pay with cash and if everywhere started adding on an extra 50p per card transaction id go mental ! The costs are usually hidden in the price anyway id rather this than it get shoved on at the end.

When I got my card machine I just increased my prices to cover the cost that way.

 

[essentia]

I personally would not like to be charged extra on top of a treatment - I think you have to add it into your treatment cost. The only time I have been charged liked this was on a beauty course I took. I felt that it should have been inclusive in the cost of the course. It does not come across well - as someone said you are being charged for the privilige of paying them.

 

[tog]

I charge an extra 50p on all transactions under £15, after all most people carry small amounts in cash so it's not normally a problem. I do this to discourage people paying for things like eyebrow shaping (and we do a lot of those) by card - at really busy times it would take extra time processing all those little amounts by card if we get lots of small treatments in quick succession.
No-one has thrown their toys out of the pram so far - and if they were that worried about the extra 50p because they had no cash we would tell them to drop the cash in next time they are passing by. I think about 2 clients have done that in the past 3 years that we have had the card machine.

 

[Angelaznailz]

I charge an extra 50p on all transactions under £15

I'd be OK with this policy and I feel a bit less scared about getting a machine in my salon if I do this too. :Scared:
I have resisted installing one because of he charges I'd have to pay, but just today, I could've sold 3 handbags if I'd been able to process cards. I haven't lost the sales, they're all coming back tomorrow with cash, but it would've been more professional.

 

[Lynne Baker]

I haven't lost the sales, they're all coming back tomorrow with cash, but it would've been more professional.

I know very little about sales and marketing but I do know that closing the deal is key! I'm not suggesting that they won't come back, but neither you nor they know what tomorrow might bring!
If you become a member of the FSB they do very good deals on credit card terminals - the first 3 months rental is free, for example.
I think that having a card terminal is just one of the many costs of sale that should be absorbed into the price of the treatment. After all you don't charge extra if you use an extra sheet of couch roll, or one more towel than normal, do you?!