Replies

1. 
   Ryan_C | Dec 04, 2000 08:26pm | #1

   *
   Thought I needed to take credit cards when I first started out. Signed the paperwork to get a merchant account and put the visa and m/c logos in my advertising.

   There was a problem with the paperwork and I was asked to fill it out again. In the mean time, I hadn't been asked once to take the cards so I forgot to fill it out.

   The adds ran for one year and only got asked to take a card once. That was for an 8K basement remodel. She just wanted to use the card to get the 1% back. She had the cash to pay.

   So I dont' take cards.

   There was a discussion on this about a year ago. Check the archives.

1. 
   Jeff_J._Buck | Dec 05, 2000 07:03am | #2

   *I looked into it a little. The reason I haven't yet is that you have to pay refunds with little or no questions asked. A few shop owners I know advised not to do it, as they get regularly burned, but for them there is no was around it.At this point, a few good screwings would put me under, so I choose to err on the side of safety and not bite off more than I can chew. Jeff

1. 
   Stephen_Hazlett | Dec 05, 2000 02:12pm | #3

   *good question.I run an ad in the yellow pages under the heading roofing.Several times a year I get calls from people asking if we accept credit cards.I thought about it for a while,and figured this might be an untapped market for me so I signed up for a merchant account.2 problemsThe merchant accounts are set up to handle zillions of retail transactions quickly.The bank wants you to take the customers card and verify it automatically by phone ,punching in and endless sequence of code numbers etc.I kept screwing it up.Over a 12 month period the credit card was used by 2 customers,one of whom could have payed cash.Both transactions were fouled up.One customer paid for an entire roof with a credit card then went on vacation.through a combination of my error and the banks error,the customer was charged TWICE for the same roof.Luckily I caught that within 24 hours---raised hell with the bank and got it straightened out.the second customer turned out to be a pretty big pain in the butt---needlessly complicating a very small roof repair through endless schedule changes,licensing requirements,insurance certs.,etc.To cap it off 2 months after the job the 2nd customer called to complain that the credit card company had charged his purchase as a cash advance not a purchase.All of this agravation cost me $29 /month merchant fee plus transaction costs. Unless you will use this type of service VERY frequently It will not be worth the hassle.

1. 
   Ken_Watkins | Dec 05, 2000 07:27pm | #4

   *We have had credit card merchant accounts set up for about 10 years now since we were more closely associated with the retail end of the business then. But I agree with Stephen. Even with the automatic card readers, they are not needed for major home improvements. And it's really difficult to repossess a home improvement or return materials that you have already installed. Anyone who rally wants to put that much on their charge card account can simply write out one of the checks that they can get by calling their card provider. I might reconsider if we were in an area of the repair business turning lots of small dollar jobs each week where the risk would be spread around and proportionally smaller for each transaction. Since we haven't had any requests or need for the service this year, we plan to eliminate our merchant accounts first of the new year.

1. 
   dan_tripp | Dec 05, 2000 11:31pm | #5

   *I really appreciate the feed back. I had not even considered the point that they could write a check, or really just get a cash advance if that were the way they wanted to go. Still could use the card without me paying the fees and going through the hassel. I have not been asked yet to take a card so I guess the smart business move is to wait on demand. Thanks again. DanT

2. 
   Joe_Hennessey | Dec 15, 2000 07:17am | #6

   *Don, how big of jobs are you doing? There's a web thingee called "Pay Pal" that operates as a credit card of sorts. You can use it to pay for things online or to accept money on line. It's pretty cheap and easy, I think EBay is where it is used the most, but it can be used for anything I think. Joe H http://WWW.paypal.com

2. 
   dan_tripp | Dec 15, 2000 07:18am | #7

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   I operate a small handyman style business. Fix, repair, replace existing home and light commercial maintenance issues. I realize the guys that do builds and full remodels deal with bank financing but do you who do smaller repairs and remodels accept credit cards? Is it cost effective? Hard to set up? What cards are you taking?
   DanT