Getting rid of card machine?

[orchid11]

Hi,

I have been thinking of not having a card machine. I have a mobile terminal and half the time I don't have good signal (my area is not the best for signal anyway), so unable to connect and take payments which is very frustrating as well as the amount it costs me to lease it and the cut the company takes off each transaction.

I work by myself so its quite a chunk all the time, just wondered if anyone has done the same and how you got on with clients being ok with having to pay cash? As much as I would let everyone know in advance if I did cash only we have two banks nearby the salon so people could easily get cash out.

It just got me thinking recently as my car mechanic said to me he doesn't have card machine anymore so my service and mot was cash or cheque and that's obviously big payments. I was surprised but it didn't bother me.

Has anyone had card machine, then got rid of it and how have you got on? Has it put clients off? Would I be silly to?

Thanks x

 

[hairbylouisa]

What kind of card machine are you using? im currently using a pay as you go one... no monthly fees but they just take a %per transaction which starts at 2.75% then can go down to 1.50%. it connects to my mobile via bluetooth. i personally thibk if youve got a card machine the clients may potentially pay for nore expensive treatments such as a block of facial treatments (not many people like to carry hundreds of pounds about) xxx

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[BannerPenguin]

If you're in a salon can't you get a wired machine?

I personally get the hump with places that don't take card but that might be just me. Also the likelihood of up-selling is smaller. If people have to go to the cashpoint they are more aware of what they're spending and won't make impulse purchases.

You could have the chance of people doing a runner as well if they say ill just go to the cash machine then.

 

[beautyxperts]

I've always had card machines, clients definitely spend more, that impulse purchase on counter or after a face mapping skin analysis when they purchase £100 in products, they wouldn't do it if I didn't have a machine, I've even had clients pay £2 (Yep!!) on card because a lot of people don't carry cash anymore. Although the two NSS Nail bars in my area only take cash but they do not retail any products. I am going to buy a payg machine to trial & if it's as good as my barclays card machine then I'll switch saving approx £100 a month! X

 

[Trinity]

Cheques are becoming less and less accepted these days so you'll be limiting yourself to cash only, unless you're happy to let people leave to get cash after their treatment, or really good a remembering to tell everyone before each treatment starts every time, you could find yourself in a sticky situation.

There are lots of companies doing mobile payment systems these days, I'd try shopping around before ditching it completely. Start with your current supplier, you should be able to negotiate a change in tariff, ask if they have any signal boosting solutions too. Can you access WiFi instead for instance?

 

[jamiereid92]

Agreed with everyone above, cards are the future, getting rid of it will set you back. The payment proccess needs to be easy and simple with the clients point of view in mind, as they are the ones spending the money!

Look around for a better card machine x



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[squidgernetball]

I'm in a salon with poor reception but our machine is wired through the computer.

You would be mad to get rid of your machine. No impulse purchases, no chance to up sell. We sell courses of facials - the most being over £700. I wouldn't want the cash hanging around, and many bank accounts don't offer cheque books.

If you consider yourself to be a business you have to act like a business and I really think that involves having a card machine.

My daughter saw a sign in a pub in Manchester that said "of course we have a f*@king card machine, it's 2014" which kind of sums it up for me.

If you're not happy, shop around, or ask your current company for another option but just be aware of the very steep charges of the pay as you go ones.

Vic x

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[Emily S]

I work from home and don't have a machine but clients do often PayPal/bank transfer.

My friend has worked in 3 salons over the past 13 years that she's done my hair, none of them have had a card machine, it's not something I have ever expected either.

I did contemplate getting with the times and investing in one but I don't think it's fair to put my price up for all clients and if I was to add on the 2,5% charge to those who did pay this way I think they'd make sure they didn't 'forget their purse'/avoid the dodgy cash machine that never works lol


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[squidgernetball]

I work from home and don't have a machine but clients do often PayPal/bank transfer.

My friend has worked in 3 salons over the past 13 years that she's done my hair, none of them have had a card machine, it's not something I have ever expected either.

I did contemplate getting with the times and investing in one but I don't think it's fair to put my price up for all clients and if I was to add on the 2,5% charge to those who did pay this way I think they'd make sure they didn't 'forget their purse'/avoid the dodgy cash machine that never works lol


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I started out working from home and had a pay monthly card machine literally from the word go. I paid under £20 per month rental and debit card charges are about 20 pence each. Credit cards are a percentage but nothing like the pay as you go ones.

I never have clients asking to pay on a different day or promising to transfer money and I never have clients trying to get me to do deals or reduced rates.

If I'm really honest, if I went to a hair or beauty salon that didn't take cards, I wouldn't go back. I pay a lot for my treatments and so do my clients and a lot of the time clients use a card that gives them vouchers, discounts or points.

As I say, it's business. Sometimes you have to suck up the cost of the machine to benefit your clients, and ultimately your business.

Vic x

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[beautyxperts]

I started out working from home and had a pay monthly card machine literally from the word go. I paid under £20 per month rental and debit card charges are about 20 pence each. Credit cards are a percentage but nothing like the pay as you go ones.

I never have clients asking to pay on a different day or promising to transfer money and I never have clients trying to get me to do deals or reduced rates.

If I'm really honest, if I went to a hair or beauty salon that didn't take cards, I wouldn't go back. I pay a lot for my treatments and so do my clients and a lot of the time clients use a card that gives them vouchers, discounts or points.

As I say, it's business. Sometimes you have to suck up the cost of the machine to benefit your clients, and ultimately your business.

Vic x

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I get charged 3% of any transaction that goes through my machine, I can't remember exact cost for AMEX but roughly £1.29 per £30, plus my rental £22.50 - I'm going to call them and see if I can reduced rates as it works out a lot. X

 

[BannerPenguin]

I get charged 3% of any transaction that goes through my machine, I can't remember exact cost for AMEX but roughly £1.29 per £30, plus my rental £22.50 - I'm going to call them and see if I can reduced rates as it works out a lot. X

3% is horrendous. I don't even pay that on AMEX.

Debit cards should be around 20p however I believe VISA have just changed the rules as in mid 2015 everyone will pay a percentage instead of a flat rate. Mine will be something like 0.037% though so pretty reasonable.

 

[Emily S]

I started out working from home and had a pay monthly card machine literally from the word go. I paid under £20 per month rental and debit card charges are about 20 pence each. Credit cards are a percentage but nothing like the pay as you go ones.

I never have clients asking to pay on a different day or promising to transfer money and I never have clients trying to get me to do deals or reduced rates.

If I'm really honest, if I went to a hair or beauty salon that didn't take cards, I wouldn't go back. I pay a lot for my treatments and so do my clients and a lot of the time clients use a card that gives them vouchers, discounts or points.

As I say, it's business. Sometimes you have to suck up the cost of the machine to benefit your clients, and ultimately your business.

Vic x

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£20 distributed over even 40 clients a month is still 50p per client plus the 20p charge is 70p a client.

This is IF they all take advantage of using the machine, if not it's completely wasted £20 a month.

It really doesn't seem to be the norm in this area and I don't have any issues the way it is - not one client in 4/5 years has ever asked if I take card and I've had 2 clients wanting to pay by cheque. The only reasons people have done a bank transfer/ PayPal has started as a one off, not because they've expected a card machine

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[beautyxperts]

3% is horrendous. I don't even pay that on AMEX.

Debit cards should be around 20p however I believe VISA have just changed the rules as in mid 2015 everyone will pay a percentage instead of a flat rate. Mine will be something like 0.037% though so pretty reasonable.

Which merchant services do you use? X

 

[BannerPenguin]

Which merchant services do you use? X

I'm with CardSave and the merchant account is provided by Streamline. I think cardsave now is WorldPay though so if you go on cardsave's site it will come up as world pay

 

[hazelb]

I used to have a great deal with world pay:

50p a debit card and no other fees ( included merchant account ). It was 1.75% credit card...so I just didn't take those.

Now I've been 'upgraded' to a world pay zinc account: where it's 1.75% on all card transactions

The plus side is that I can take payments over the phone ( for gift vouchers etc )


I'm always on the look out for a better deal, but I haven't found one yet.

Cheque books are becoming a thing of the past. Most people will pay cash but they do flap if they can't get to a cash point.

 

[EmJ]

I used to have a great deal with world pay:



50p a debit card and no other fees ( included merchant account ). It was 1.75% credit card...so I just didn't take those.



Now I've been 'upgraded' to a world pay zinc account: where it's 1.75% on all card transactions



The plus side is that I can take payments over the phone ( for gift vouchers etc )





I'm always on the look out for a better deal, but I haven't found one yet.



Cheque books are becoming a thing of the past. Most people will pay cash but they do flap if they can't get to a cash point.

I spoke to world pay and they said 23p on debit cards!! Check out netpay through Costco, they are way way cheaper!

 

[hazelb]

It's a numbers game. As costco has a monthly charge for their static wired terminal £17.50 +vat per month, then 12p per debit card transaction, it's only cheaper if I take over £1200 a month by card.

 

[Anna from Toronto]

I work from home and don't have a machine but clients do often PayPal/bank transfer.

My friend has worked in 3 salons over the past 13 years that she's done my hair, none of them have had a card machine, it's not something I have ever expected either.

I did contemplate getting with the times and investing in one but I don't think it's fair to put my price up for all clients and if I was to add on the 2,5% charge to those who did pay this way I think they'd make sure they didn't 'forget their purse'/avoid the dodgy cash machine that never works lol


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How about raising the prices by 2.5% and giving people a discount if they pay cash or debit? Just thinking out loud.

We only accept cash and debit. Our average bill is about $45. Our prices vary between $28 (for brows) and about $100 for mani/pedi with gel polish.
The only thing we do upsell is cuticle oil and foot creams ($3.50-$27)

Our debit transactions cost me $0.12 per transaction but VISA and MC are 2.9% and additional 1%+ if it's a reward card (where clients collect air miles, points etc... so basically we as merchants pay for their vacations etc when you think about it)
I tried to get a better deal which would be 0.06 on debit and about 2.4% plus 1% but then i have to re-sign 3 year contract with them (which i read in a very small print and wasn't told this- which turned me totally off)
So, we don't use the credit cards.

 

[Emily S]

How about raising the prices by 2.5% and giving people a discount if they pay cash or debit? Just thinking out loud.

We only accept cash and debit. Our average bill is about $45. Our prices vary between $28 (for brows) and about $100 for mani/pedi with gel polish.
The only thing we do upsell is cuticle oil and foot creams ($3.50-$27)

Our debit transactions cost me $0.12 per transaction but VISA and MC are 2.9% and additional 1%+ if it's a reward card (where clients collect air miles, points etc... so basically we as merchants pay for their vacations etc when you think about it)
I tried to get a better deal which would be 0.06 on debit and about 2.4% plus 1% but then i have to re-sign 3 year contract with them (which i read in a very small print and wasn't told this- which turned me totally off)
So, we don't use the credit cards.

People only pay cash anyway.. there's the odd PayPal or bank transfer and neither of them cost me so if it's convenient for them, it's no different for me than paying by card.

I don't honestly see the need especially working from home, people don't expect it and it's not beneficial to introduce it :/

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[Redduck]

I also have a home clinic. I didn't take card payments until earlier last year (17 years of just taking cheques and cash) and I'm now glad I went for a card machine. My clients love it, retail sales have shot through the roof and no more taking cheques to the bank. If you really don't want it and your clients are happy then stay as you are though as it is working for you.

My reasons for taking card payments were; a few clients had asked; in my head I thought it may look more professional; I thought retail sales would increase.