The university deposits directly into my checking account, as does Social Security. For other institutional accounts, I give or mail them paper invoices, or some prefer to have an email invoice, and they usually send checks. The City of Corvallis also deposits directly into my account. Private customers seem just fine with cash or check. The most frequent question I get is, "Is a check okay?" showing that they wonder if I only take cash. Of course a check is okay ...
It's obvious that Hawaii and Oregon are different places in some respects.
While I use the credit union's debit card frequently, which probably (regrettably) is serviced by some larger entity, I prefer, whenever possible, to avoid doing any business with or giving any profit to major banks. I think they took the country (actually, the world) to the cleaners in 2008, and they don't seem to have changed their ways since. Why should they? They paid no price, they kept the illegal profits and got all of us to pay off their losses.
Some of this may be showing my age. I remember when paying and getting paid was much more direct and simple. I remember when, if someone got a mortgage from a local bank, the mortgage would STAY in the local bank, and a mortgage customer could talk with actual physical people about a mortgage or a loan. I really don't see the benefit of having something like a home mortgage passing through twenty hands in a week or two, let alone being sliced and diced into dubious and unregulated securities. A credit or a debit card certainly makes online transactions easier, but sending everything automatically through credit, even local transactions between individuals, seems unfortunate. As individual business people, we at least have a choice.
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Susan Kline
Philomath, Oregon
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Original Message:
Sent: 09-25-2018 22:21
From: Ted Rohde
Subject: Credit Card Fees
Most of our larger commercial accounts and government accounts pay by credit card. Concert venues, college accounts, VA Hospitals, city school districts, not to mention just normal residential customers....we don't have much of a choice as I see it. We have to take the 3% as a business loss. We don't charge a fee for that, but just absorb it as a cost of doing business. Plus, we're glad to have the work, dang it!
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Ted Rohde
Central Illinois
Original Message:
Sent: 09-25-2018 22:06
From: Willem Blees
Subject: Credit Card Fees
Susan.
I get asked at least 4 or 5 times a week, on average. Some weeks I'll have as many as 10 out of 15 appointments pay by cc. Other weeks only 1 or 2.
Just yesterday the estimate was $450, and if she couldn't have put it on a cc, she would not have had the work done.
I use use a Square and even though it costs me less than 3% per transaction, it not only brings in enough extra business to pay for it, it makes my customers happy. And as I said before, happy customers bring in more happy customers. A win win for everyone.
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Willem "Wim" Blees, RPT
Mililani, HI 96789
Original Message:
Sent: 09-25-2018 21:59
From: Susan Kline
Subject: Credit Card Fees
Do your customers really demand to use credit cards? I only get asked if I accept a credit card once every three or four years.
Isn't it easier, simpler, and less costly to get paid by check or cash instead? It's always worked fine for me.
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Susan Kline
Philomath, Oregon
Original Message:
Sent: 09-25-2018 08:22
From: Dave Foster
Subject: Credit Card Fees
There was a discussion recently about adding a "convenience fee" to a Credit Card payment. The practice of always charging customers a fee for credit card payments, no matter how the transaction takes place, is called a surcharge. These are currently prohibited in 10 states-Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma, and Texas.
By definition, a "convenience fee" is using a credit card if the customer is using a non-customary payment channel. For example, if you primarily accept payments in person, a convenience fee may be added if they use a mail or telephone order. This is legal in ALL states.
But there are also rules to follow, if a surcharge is legal in your state. The two most important are:
1. The surcharge can NOT be more then the processing fee you are charged, or 4%. You have to use whichever is lowest. So, example... if you charge $5 fee for a tuning of $150. Square, for example, charges 3.75%. They'll take $5.62. So you're ok. But, if you charge $80 for a tuning, but still charge $5 fee, Square will take $3. Your fee is illegal, and if your customer cares... you'll get in trouble.
2. You have to tell the customer BEFORE your add the fee. You have to advise them there is a surcharge for CC payments. If you add it in without telling them, that is illegal.
Again, review the laws of your state or country. These laws are different everywhere you go.
My own practice, I don't charge a fee for tunings, and regular calls. I personally think it's a minor issue. I have learned MOST people don't care to pay a fee, but some do. So, The $4-$6 fee that I pay is worth the word-of-mouth advertising I get. I will, however, add a surcharge of 3.75% for anything over $500 for repairs, rebuilds, parts, etc.
May point.... stay safe and legal. It only takes one bad customer to report any bad behaviors.
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Dave Foster, RPT
Waterford MI
248-431-8804
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