credit cards or not?

[suzie]

in the 2 months since we've been in the new location, hubby says he's had *at least* 13 people ask if he took credit cards.

i'm wondering who here takes credit cards, what sort of impact has it had on your business, and if you don't mind, sharing who you use for the services and what rates/perceneforum.xxxes you pay (this can be in a pm or don't answer this part if you're not comfy saying).

we did get set up for them a year ago, and had 2 people take advaneforum.xxxe of it, but he was only outcalls or at the school (which already took cc's) and we were wasting money on the monthly fees, so we ditched it. now that he has a place, we're wondering if that was the wrong thing to have done.....

 

[Harry]

Hi Timedess,

Here are some threads on credit cards that you might find helpful:

http://www.massageplanet.com/forum/viewtopic.php?t=13814
http://www.massageplanet.com/forum/viewtopic.php?t=13280
http://www.massageplanet.com/forum/viewtopic.php?t=970
http://www.massageplanet.com/forum/viewtopic.php?t=12576
http://www.massageplanet.com/forum/viewtopic.php?t=9265
http://www.massageplanet.com/forum/viewtopic.php?t=8572
http://www.massageplanet.com/forum/viewtopic.php?t=8304
http://www.massageplanet.com/forum/viewtopic.php?t=4759
http://www.massageplanet.com/forum/viewtopic.php?t=1310
http://www.massageplanet.com/forum/viewtopic.php?t=1306

 

[Smoking Gun 420 <3 Alyssa]

Thank you, Blisss! Those threads were very helpful. Based on the reviews I read there, and the previous experience we had with Cell Charge, we've decided to go back with them. Great news- since we closed the other account within the past 12 months, they're only going to charge us a $25 setup fee instead of the usual $79 fee. We needed to change it all over anyway, because we changes business names.

Thanks again!

 

[daza3033]

Every six months or so I contemplate going the credit card route. Experts keep saying that this is the best way to be open to all potential clients, etc. I have had rare occasions where a client has told me that if I took credit cards they would book more tightly packed appointments. But, I have never had a potential client not schedule or cancel once they found out that I did not take plastic. I have a full practice on cash/checks only. No insurance, no credit cards. 3% off the top can be significant. If I acceept credit cards I can envision even those clients who are happy to write a check paying me via credit/debit, simply because it may seem easier. So, it is not the 3% of those few who request credit card payment from the start. I would estimate that at least half would opt for the credit card. Two days after my every six month internal struggle, I keep my payment policy just as it is. I am waiting for someone to convince me otherwise.

 

[Lynette]

Walt, I also have a full private practice & don't accept credit cards. However, I believe Timedess has a multi-therapist practice, and I think that changes things. There are limits to the number of people you or I could see in a day. But if Timedess is trying to build clientele for a group of therapists, accepting credit cards might help a lot.

 

[On fire]

Actually, it is just my hubby right now, and I will be eventually joining him once I'm licensed. The major reason why we want to get set up with the CC route is not just because we want to have it "for convenience for the clients", but also, there is a specific group we want to market to, business-to-business, and it could make a major difference there. Yes, he has had several regular clients ask about cc, but this is for more than just them/getting new individual clients. We see a great potential with this new marketing direction (and are "launching" next week- keep your fingers crossed for us, please!).

Personally, neither my hubby nor I "like" the use of credit- in fact, we don't even have any credit cards at all, personal or business. We don't have a "line of credit" for the business. I hate the trap that credit use can be for many. We've been evaluating what our personal market needs in order to expand, and this seems to be a part of it. I say "seems" because there is little way to know anything for sure until one has "dove in to test the waters". "Everyone" says that in order to succeed in business, you have to get a credit card, a loan, or line of credit somehow, but we refuse to do that. I guess my naivety would like to make believe that anyone wanting to make use of cc processing for our business would be doing so with a debit card, and actually have the cash in the bank already, but I know that's just it- naive thinking, LOL!

 

[Ashton L]

I don't have a credit card, never have. I've never borrowed for my business. I own my house. I guess I don't agree with "everyone" either.

I do use cellcharge and I'm satisfied with the service.

 

[britt_bratt_rulz]

Just because someone uses credit cards, doesn't mean they are in debt. I pay my card off every month. I use it for everything possible. I also get free flights as a perk from that card.

I can take cards but discourage it. My clients understand and just come prepared with a check. If there came a time when one said they had to use a credit card, I would take it.

And there can be benefits to borrowing money to start up a business versus using your own.... but one has to weigh that out. I have not ever had to borrow either but I haven't got a big set up. Just me and my room. lol

 

[The Kitten in Clothes]

Oh, I understand that, softy (that not everyone who uses a credit/debit card is in debt). We use our debit cards, and we aren't in debt! We don't have a big setup either- just hubby and his room. We will definitely be looking for something more convenient for the both of us in the future, as we're hoping to get busy enough to need two rooms instead of sharing the one, and we couldn't do couples massages in the room he has now- it is far too small! But all things in due time!

Thanks for the help, y'all. I appreciate it!

 

[Cherryblossum]

I take cards, and encourage it. It's worth my 2.5% to have the fees deposit directly, I have a large % of my clients on packages, and prefer not to be taking $200-$500 checks, even if it costs me $12 to run the card. I go to the bank twice a month to deposit checks, and usually pay myself weekly out of the cash receipts, so I have very little cash on hand at any particular time.

My people like the convenience and the receipt.

Most of them pay with debit card or mileage cards.

 

[Sinner]

So the main advaneforum.xxxe/convenience to you, Pete and Breathe, is that when a client pays with a credit card, the funds go right into your account and are immediately accessible, like if you want to write someone a check or go to the ATM or something? Whereas with checks you'd have to wait to go to the bank, and then wait for the check to clear?

Just trying to be clear, because that is not an advaneforum.xxxe for me. Probably why I don't have credit cards. I'm with Walt on this.

I do accept paypal, so if someone really wants to pay with a credit card, they can. The only people I have had use that are those wanting to buy gift certificates online (and not have to come in to get it) or tourists. I do concede that I might get more tourists if I accepted credit cards. But I don't really need to see more people right now. When I'm looking to expand my business I might do it. But as Walt said, I wouldn't want my regulars using their credit card just from convenience. With no advaneforum.xxxe for me, 3% is a lot.

 

[Askonly]

Most of my clients pay with CC. For me its not a big deal and I like the fact that I can offer that convenience for them. I believe I sell more GC online due to the fact of taking the cards. Its just the cost of doing business for my business and I factor it in. I fall into the you have to spend some money to make money category. But two years in I am still in the building a business seforum.xxxe. Now if I where not looking for new clients, was fully booked and had those clients trained already to pay cash or check, then why bother? You need to look at your situation and what you are striving for or trying to maintain to know what the right answer is for you. Oh yeah, and I do a lot of spa parties and its nice to secure those dates with a CC.

 

[Lightning]

I do a lot of spa parties and its nice to secure those dates with a CC.

Even for individual clients, this is one of the greatest benefits. Require a CC for advance bookings and watch your cancellations and no shows disappear. So long as you have your cancellation policy posted in your office on your website and best of all - in a fax or email confirmation to the client stating Card ending in XXX guarantees appt - you will never lose a dispute.

 

[Inzane]

And there can be benefits to borrowing money to start up a business versus using your own.... but one has to weigh that out.

The reality is, borrowed money IS your own money.

It has become -- and pretty much always has been damn close to -- impossible to borrow money that is not secured by collateral. So if you don't pay your loan, you lose the collateral.

That collateral can be cash, securities or real estate (other than cars, banks don't take personal property as collateral).

Thanks to the tax code, debt is relatively cheap since interest is tax deductible and interest rates are historically low.

I think Dave Ramsey is brilliant with his "debt is evil" philosophy for personal finance. But it is over simplification to say never be in debt, especially in a business environment.

When you start a business, you can

A) Put every penny we owned into it
B) Borrow 80 - 95% of the money and put every penny up as collateral
C) Waited until your investments and savings = the money you need

A) would probably leave you without a cushion. With the money spent, there is no collateral for a future loan

C) You would still be waiting...and with the recent market swoons, your dream -- and the jobs you would create -- would be deferred indefinitely

B) probably works best.

In our case, we are in debt up to our eyeballs, but have no trouble making our payments and created 15 jobs and are already eyeing a new location.

 

[Sneha R]

So the main advaneforum.xxxe/convenience to you, Pete and Breathe, is that when a client pays with a credit card, the funds go right into your account and are immediately accessible, like if you want to write someone a check or go to the ATM or something? Whereas with checks you'd have to wait to go to the bank, and then wait for the check to clear?

Just trying to be clear, because that is not an advaneforum.xxxe for me. Probably why I don't have credit cards. I'm with Walt on this.

It's there in 24-48 hours. I keep enough funds in the business account at all times to cover the next months expenses and then some, so it's not a matter of being immediately available so I can use it, it's more like having a personal assistant handle my banking chore.

I don't like to have to worry about carrying around peoples' personal checks. I also like the paper trail of the individual transactions as they deposit into my account.

Plus the convenience factor has been a selling point on several occasions, especially for packages. And I can sell my spaboom certificates without dealing with Paypal. I've been burned on Paypal enough times that it would pay for at least 1/2 of my credit card transaction fees for all of this year. It doesn't take very many Paypal issues to add up to a whole lot of money.

 

[airjarrod]

Thanks for explaining, guys! Definitely makes me see things in a new light, esp. re: issues with paypal. Also, I wonder how many people surf to my website, want to make an appointment, but when they see I don't take credit cards, simply don't call. I just got a cool business account with my bank and could accept cards through them, so maybe next time I go in I'll talk to them about it.

 

[gwan]

Again, thanks so much for all the input! Seattlesunshine and R&R have made another point I was finding floating around at the back of my brain- I can snag prepayment for many of the appointments, especially maybe for newcomers we don't know/who haven't been directly referred by someone we know.

We met with our marketing adviser this morning, and when I mentioned that by Tuesday we should be able to accept cc's, she beamed.

I have another question, I'll take the chance of it's getting answered in this thread instead of starting another one:

If you require "ID" for checks, how do you accomplish that? We don't have a copier available to make copies of drivers' licenses. And what do you DO with that information once you have it? I would feel uncomfortable storing such information in my computer. With the CellCharge, we'll be able to run the transactions right then with the client present, and write down the verification number, so we won't have to keep their credit card number on hand. Also, if you require cc prepayment for any services, how do you handle that? (ok, so that's more than just "one more question"- sorry!) Thanks!

 

[Miss. Weasley]

My wife and I have been resisting accepting credit cards for a couple of years. But it just makes it so much easier to sell packages when you accept credit cards. So cellcharge here we come, they are reasonably priced.

Jason

 

[WATCHA]

I say YES to accepting cc.
I don't know how you cannot in this day and age.
It also makes your business more professional and
I found I lost out on some business when I did not
offer them. Especially if someone wanted to purchase
a gift certificate. Oh, and don't forget holidays.

It does not cost that much and you should weigh that
cost on how much possible income might be losing
because you do not accept them.

It also allows clients from across the country to purchase
gift certificates from your website for family and friends.
I think it's a must.
I can process cc at home, at my place of business and anywhere over my cell phone. LOVE IT!!!

 

[Dorkie Yorkie :D]

Yeah, I dunno when/if we'll ever get to selling gift certificates through a web site. We still have a long way to go with that thing- and will definitely want to do something other than ABMP's freebie site once we have the time/money to invest into building a fantastic site. I know where I want it hosted, but we will still have to decide when/whether to offer GC sales through it. That is "too much thinking" right now, on top of everything else going on. Maybe we'll visit that concept at the beginning of the new year.