Installers & Credit cards

[pr3dict]

So I had a garage door company come today to do measurements and order the garage door.

After asking for a deposit I handed him my credit card and they said they don't like to take credit cards because it's "too easy for the homeowner to dispute".

Is that a red flag or what? I've never had anyone tell me that was the reason they didnt want to take cards. I told him I was even fine paying the 3% extra (my credit card gives 2% cash back in rewards).

I'm a little hesitant now to give them cash/check because of this. Anyone have an experience like that?

 

[Viper98912]

Correct, but I would have said "that's how they keep you honest". Find someone else if you don't think it's worth it, or go ahead and get the paper checkbook out...

 

[Higgins]

Get another quote !!

 

[Bent Handle]

They’re probably just not really set up for it. Kind of a dumb way to say you don’t want to take a card though.

 

[jimindm]

Could be a red flag, or maybe not.

They may have had a problem one time, and so that is their policy.

I could sort of see where is could happen. If there was any dispute and the home owner would not let them come get the door, or try to work it out in any way.

Even more so if it is some special order door.

 

[pr3dict]

He said a few months back that he did a service call for $80 and the guy charged the card... A few weeks later the homeowner disputed and said he didnt remember the guy coming out to do service. After college I worked in the fraud department of an online gift card provider so I am very aware how easy it is to file disputes but that is the cost of doing business.

Granted he doesn't have to take cards but 100% weird way of saying they don't lol. He ordered the door anyway without the deposit but still weird.

 

[Moss]

Definitely not the best way to say it! Especially over an 80 dollar charge. I think the only red flag is his customer service skills need some work.

 

[rok_hunter]

Friend of mine does boat rentals on the gulf coast; he's had more than one customer use a CC to rent the boat, then call their CC company the next day and say it was a fraudulent charge and have it removed.

Sent from my Pixel 2 XL using Tapatalk

 

[jimindm]

I think it is interesting how often that is the cost of doing business is said here.

So as a business, we just assume the risk of not getting paid. Every transaction.

I guess as the owner if I do not get paid I am just out my time, if I do the job. But if I pay an employee to do it, he still gets paid. It costs me to work for the customer free.

I get it, it is a part of doing business, but you get stuck with a few and you seem to change the outlook of how you do business.

Business is really hard right now. I would guess some really have no idea how hard it is, with their some of their expectations.

 

[u2slow]

Really depends on the contractor's clientele whether he finds the CC makes more sales, or causes more problems and overhead. Some folks aren't tech-savvy enough to manage electronic payments either.

 

[pr3dict]

I think it is interesting how often that is the cost of doing business is said here.

So as a business, we just assume the risk of not getting paid. Every transaction.

I guess as the owner if I do not get paid I am just out my time, if I do the job. But if I pay an employee to do it, he still gets paid. It costs me to work for the customer free.

I get it, it is a part of doing business, but you get stuck with a few and you seem to change the outlook of how you do business.

Business is really hard right now. I would guess some really have no idea how hard it is, with their some of their expectations.

This is something that needs to be analyzed as a business. If every transaction you do has a risk or high risk of being returned or canceled then maybe it's not a good business case to have a business like that. There are industries that are like that.

This exact reason is why some type of businesses do not require deposits while others do. When I worked in fraud detection this was a question that came up with every transaction. Being online gift card delivery that industry is notoriously high with fraud. The reason being is that when you use a credit card to deliver something to someones house you can say look it was delivered to the billing address. With delivery to an email address there are so many things that can go wrong there. On multiple occasions we would deny people the ability to purchase gift cards forgoing thousands and thousands of dollars because the risk was too high. Some credit card processing companies & Paypal at the time would not even do business with us until we could get our formulas better for detecting and preventing fraud.

My point is that it is a cost of doing business and you said it yourself. You as an owner need to make the determination if that cost is baked into your prices or if its worth doing business with a specific person/type of business or even doing business at all.

 

[Moss]

I think it is interesting how often that is the cost of doing business is said here.

So as a business, we just assume the risk of not getting paid. Every transaction.

I guess as the owner if I do not get paid I am just out my time, if I do the job. But if I pay an employee to do it, he still gets paid. It costs me to work for the customer free.

I get it, it is a part of doing business, but you get stuck with a few and you seem to change the outlook of how you do business.

Business is really hard right now. I would guess some really have no idea how hard it is, with their some of their expectations.

I totally understand your point. I am a small business owner myself. I don't see how any company could really expect to not accept credit cards in 2020? He was trying to pay a deposit not the entire invoice so that is relevant too. I doubt many customers charge back the deposit on a new garage door. It just doesn't seem worth the lack of easy payment for the customer to me.

Edit: I have had WAY more issues with people paying an invoice on time than I have ever had with CC payments. I much prefer getting money right away with credit card.

 

[u2slow]

Edit: I have had WAY more issues with people paying an invoice on time than I have ever had with CC payments. I much prefer getting money right away with credit card.

10 years ago when I accepted credit cards (bank's small-business acct) only a PORTION of the money comes right away. Something like 60% now and rest trickles in over 90 days. I don't know if its changed, but watch out for that.

I always preferred to leave the job with payment. Now I try to do the same when I hire a contractor.

 

[Don1357]

I totally understand your point. I am a small business owner myself. I don't see how any company could really expect to not accept credit cards in 2020? He was trying to pay a deposit not the entire invoice so that is relevant too. I doubt many customers charge back the deposit on a new garage door. It just doesn't seem worth the lack of easy payment for the customer to me.

Edit: I have had WAY more issues with people paying an invoice on time than I have ever had with CC payments. I much prefer getting money right away with credit card.

The same way some people see not accepting credit cards as strange and silly i find not being willing to pay with cash or check strange and silly.

 

[scottydosnntkno]

10 years ago when I accepted credit cards (bank's small-business acct) only a PORTION of the money comes right away. Something like 60% now and rest trickles in over 90 days. I don't know if its changed, but watch out for that.

I always preferred to leave the job with payment. Now I try to do the same when I hire a contractor.

We’ve been taking credit cards for way longer than 10 years and I’ve never heard of that type of deposit schedule.

Some of our companies have used square since they started like 13 years ago, and whether it’s $100 or $10,000 the money transfers nightly and is in our account the next morning (minus the fee of course).

We literally get the money faster with a CC than we would with a check which has to be deposited plus a several day hold depending on the amount usually. The only thing better than CC is cash, but most people don’t pay $3,000+ bills in actual cash

 

[Moss]

10 years ago when I accepted credit cards (bank's small-business acct) only a PORTION of the money comes right away. Something like 60% now and rest trickles in over 90 days. I don't know if its changed, but watch out for that.

I always preferred to leave the job with payment. Now I try to do the same when I hire a contractor.

I basically get it "right away" the processor takes a few days to actually process it fully but the card is charged right away and the actual cash (less the fees) is in my account a few days later. For me it's the best method of payment. Many times I have 30 days to pay my own invoice for job materials and it's great having my customers payment well in advance of having to make my own payment. Of course others may have different experience.

 

[Viper98912]

For those customers that say they didn't remember or it was a fraudulent charge -

That's why you have them sign a paper and date it when the job is finished. Then scan it over to credit card company as your evidence.

 

[Moss]

The same way some people see not accepting credit cards as strange and silly i find not being willing to pay with cash or check strange and silly.

I didn't mean that anyone shouldn't accept those methods especially cash of course! I don't find many people have cash and cheques available to them easily these days though compared to a credit card. Most people under 40 rarely have written cheques in their lives (if at all) as far as my experience can tell.

 

[Showkey]

Don’t think checks solve any of the problems.........

1. Bad check ( no funds)
2. Stop payment

builder or contractor can always lien the home title if the owner disputes the card or gives a bad check, BIG hassle either way.

 

[nafterclifen]

In your case, I would have given them a check for the deposit as long as they agreed to accept credit card for the balance.

I recently experienced a similar situation when I had a car towed. They preferred cash but would accept a credit card, only if you send them a picture of the front and back and I think your drivers license too. I bet people do it too but not me. I'll pay you EXTRA in cash to avoid sending you pictures of my cards via text message. They said that people were using credit cards for the tow and then disputing it, resulting in the tow company not getting paid. Scumbags gotta ruin it for everyone.

 

[Jinks]

You "could" dispute the charge, but if he makes out a receipt for the charge & has you sign it he has recourse with the card company if you do. It's unfortunate that both parties have to plan on the other person being crooked, but that's what the world has become. With good documentation a company has a better opportunity of getting money from a credit card company than you have of getting money back for failed or non-existing work.

I apply that reasoning to all contractors. If they want a down payment (money before work) it goes on a credit card & I tell them it's so I can get it back if they don't perform. It costs them a percentage to do business like that & I get a percentage back from the card company. I've had contractors try to raise the price if they take a card. That got them extra time to go find another customer. I live up to my end of contracts. I expect the other party to do the same.

 

[reader2580]

I apply that reasoning to all contractors. If they want a down payment (money before work) it goes on a credit card & I tell them it's so I can get it back if they don't perform. It costs them a percentage to do business like that & I get a percentage back from the card company. I've had contractors try to raise the price if they take a card. That got them extra time to go find another customer. I live up to my end of contracts. I expect the other party to do the same.

I understand the desire to pay by credit card, but why should the contractor eat the cost? You're paying the fee one way or the other. The contractor will just increase the price to everyone to cover those who pay by credit card. That means even those who pay by check will pay more.

 

[reader2580]

Don’t think checks solve any of the problems.........

1. Bad check ( no funds)
2. Stop payment

A stop payment costs the customer money to stop the check. Today's banking system is so fast with check clearing that it is hard to stop a check in time if the recipient deposits the check right away. If I was an owner and the one actually doing the work I might do mobile deposit of a check before I even left the property.

 

[reader2580]

I didn't mean that anyone shouldn't accept those methods especially cash of course! I don't find many people have cash and cheques available to them easily these days though compared to a credit card. Most people under 40 rarely have written cheques in their lives (if at all) as far as my experience can tell.

I am almost 50 and don't carry cash or a checkbook. The only time I use cash is to pay a guy who traps gophers for me, or to buy a used item. I opened my checking account in 2017 and I have used 30 checks since then so under one per month. I couldn't even find my extra books of check for three months this year so I couldn't write any checks.

I really should carry cash for an emergency, but I would probably forget I had it when I need it, or spend it and not replenish it.

I had a business that took credit cards, or sent a monthly invoice. I much preferred credit cards as it was a recurring bill and I just charged the card monthly. It cost me at least 75 cents to send that monthly invoice and no guarantee of payment. A credit card generally meant a guarantee of payment.