General Consultant Discussion

Been a while since I've checked the rules and regulations -- is it now legal/allowable to charge a surcharge for credit card payments? I hate to surcharge everyone in the pricing but these customers who want to buy Bank Reconciliation with me giving a free demo, working through the myriad of administrative nightmares to get pricing and sales tax and then invoice, collect. Shit I'm practically paying them to take a $500 module when they put it on CC and I eat the processing fee.

According to this, Connecticut does not allow it but this is from April 2013. http://www.washingtonpost.com/blogs/on-small-business/post/commentary-new-credit-card-surcharge-rules-offer-opportunities-challenges-for-small-businesses/2013/04/23/3740cad4-ac12-11e2-a8b9-2a63d75b5459_blog.html And then there's this from Visa: http://usa.visa.com/personal/using_visa/checkout_fees/index.html So good luck @WayneSchulz !!

Thanks Therese - funny that CT exempted gas stations who prominently display the cash only price while many people who use credit cards are charged a higher fee. I guess that's what good lobbying does for you.

Maybe I should just plop a processing fee on these orders. The ones that really get me are the customer who wants to self-install and we just handle the order. Naturally when they run into an issue installing or with Sage keys we're pulled into the fray.

Can't you offer a cash discount? Or have them buy it from Sage and get your margin a couple months later.....

There is all sorts of politics about telling the customer you don't offer CC and/or to just order from Sage. I do not renew customers via CC and in most cases I tell them to send a check. The persistent ones (aka the ones who ignore discount/promo deadlines) tend to be the problems.

I had a customer in the parking business years back. A private parking lot operator technically does not have the right to issue you a parking ticket for parking on their lot and not paying. However, they do have the right to offer people who prepay a significant discount. So, if you pay up front, all day parking is $10.00. If you don't pay and they catch you, you get to pay the full parking rate of $80.00. This IS legal. All this to say, I like the cash discount recommended by @JeffSchwenk . Pay me by direct deposit and I will give you a discount. Pay me by check or credit card, then do so without the discount. If you have someone who is cheap and just wants the module, you are really in a straight retail transaction. The challenge is that Blythco will gladly take that transaction and run (picking up the ROR in the process.)

I am not talking about customers from the web - these are ROR's. And I think offering cash discount is the ""against the rules"" part that I'm questioning.

Per the Visa reference from @ThereseLogeais: ""Discounts for Cash Payments are allowed in Oklahoma Discount offered to induce payment by cash, check or similar means not involving an open-end credit card not considered a credit service charge if offered to all prospective buyers clearly and conspicuously in accordance with regulations. "" Cash Discounts are not discussed in the reference for Connecticut. Additional research might get you there. I would think processing through ACH or direct deposit would qualify as cash as well.

We try to avoid taking credit cards and have discussed adding a ""convenience fee"" to the transaction to cover our cost. This is a big number when customers want to pay their annual software subscription with CC. The state of Kansas and the county we reside in adds a convenience fee whenever fees and taxes are conducted with a credit card.

Some time ago, I was admonished by Sage Payment Solutions for charging a separate fee. It's in the rules somewhere.

I guess one way around this on product is to charge a shipping and handling which applies to everyone. Naturally on a 15,000 order that's probably not going to cover your CC fee. I'm concerned with this when I'm not also rendering services (where I can have a chance to earn back the CC fee).

I think there was a lawsuit related to this issue and the rules were changed to allow such a fee.

When you know what problem they're trying to solve, eg Bank Rec, then quote them up front your price options. The base option is very limited in services, but does include the basic orientation and support that you deliver either before purchase or after. The other 2 options have increasing level of support/service/education. Now you have room to handle the cc charge and the customer has clear options to cover his needs beyond just the license. @JohnShaver would tell you to collect a fee for the demo which is applicable to the final purchase package.

If only it were a demo. Those are much quicker and easier than getting pricing out of Sage.

We find the Sage Order Forms (Excel) are pretty good. Prorating subscription is dicey, but we just quote the full year and say that we'll prorate it before final invoice. But regardless, never sell the module alone. always have some base level of service attached to, without being clear about which occurs before the sale.