Credit Cards/PayPal payments.

[Steve Connally]

For Bank of America here's the deal. I pay $3 per transaction for bank to bank transfer. For the CC processing its a percentage on what they pay me. Billing that percentage into the job doesn't help because it raises the amount the bank charges me the fee on. Its diminishing returns. Keep in mind I'm a subcontractor so its different. I show up and do a job for you and I want a check at the end of the job. If you cant do that, I do you a favor of allowing you to pay me within 10 days of the job. You can mail me a check if you get it to me within 10 days. If you choose to do bank to bank or CC thats your choice not mine. Remember I wanted a check before I left and you know that. Since I'm doing you a favor for not paying me when I want payment I will not absorb the costs associated with you not paying me when I want to be paid. Therefore, if you want to bank to bank transfer and it costs $3...thats your choice and cost. Same with the CC fee. I'm not paying for you to not pay me when I want to be paid. Also if payment is not at my house by 6pm on the net 10, I'm charging you a late fee unless you communicate with me. I'm reasonable and know stuff happens. If you need me too I'll extend the net but not when you call me on the due date or 2 days after. Communicate how you'd like to be communicated with. The federal and state governments as well as local city governments charge a "processing fee" for cc transactions. If they can do it, so can I. I looked at all of the plans and just process cc with quickbooks and bank to bank with BOA. I will not absorb a cost of convenience for someone else. Again I'm a sub and not dealing with homeowners, thankfully.

 

[southsoundtree]

$3 is a small compared to 3%.

 

[ATH]

Or do they though? Either way, I’m not shell oil, chevron, Kroger, or Costco…….

Just occurred to me...Costco is very limited in what cards they take. I wonder if they negotiated a no transaction fee deal "If you waive transaction fees, we'll only take Visa in the store. People who don't currently have a Visa will get it to shop at our store...so we are driving clients to you."

 

[Boomslang]

Just occurred to me...Costco is very limited in what cards they take. I wonder if they negotiated a no transaction fee deal "If you waive transaction fees, we'll only take Visa in the store. People who don't currently have a Visa will get it to shop at our store...so we are driving clients to you."

It likely is a negotiation tactic. In Canada Costco only accepts MasterCard.

 

[Steve Connally]

$3 is a small compared to 3%.

2 different kinds of transactions. $3 is bank to bank transfers from their checking account into mine. 3% is the credit card processing fee. I get a 1099 from quickbooks showing all cc transactions at the end of the year as income. Its already in my books so it's not an issue but they do it anyway.