Saving about 26% on Credit card processing fees...

[Papa John]

By using Venmo instead of Square.
And 65% on fees by not using Square to invoice clients.
And my clients love using it.-- But SF is a tech-savvy town.

 

[Nomad74]

I'm saving 100%. I now charge a CC processing fee.

 

[Mikey P]

26% of what?

 

[Papa John]

26% of what?

1.9% Venmo fee vs 2.6% or more for Square fee.
At 1st glance, the difference looks like only .7% but that amounts to a 26% difference.

When you use Square to send an invoice online that allows the client to pay safely online with a credit card the fee is 3.9%

 

[Papa John]

I'm saving 100%. I now charge a CC processing fee.

There are rules that need to be followed when doing this.
@anon posted them before and it seemed too overwhelming to me to follow.
The Dic-pic dye guy charged me a CC processing fee -- and THAT rubbed me the wrong way.

 

[Nomad74]

There are rules that need to be followed when doing this.
@anon posted them before and it seemed too overwhelming to me to follow.
The Dic-pic dye guy charged me a CC processing fee -- and THAT rubbed me the wrong way.

Yup. I’m up on it. I tell them ahead of time there is a 4% fee for CC. They have the option to back out when booking. I also tell them again when I arrive and measure everything out. its not hard. In 2018 a federal court held up a ruling stating that the 1985 Ca law can not be enforced.

Credit Card Surcharges

In 1985, California passed a law (Civil Code section 1748.1) that prohibited merchants from adding a surcharge (an extra fee) when customers pay by credit card instead of cash. That law does allow merchants to give customers discounts for paying by cash, check, or debit card, as long as that...

oag.ca.gov

 

[hogjowl]

1.9% Venmo fee vs 2.6% or more for Square fee.
At 1st glance, the difference looks like only .7% but that amounts to a 26% difference.

When you use Square to send an invoice online that allows the client to pay safely online with a credit card the fee is 3.9%

You have to be doing billions(like Mikey) to realize the difference

 

[Nomad74]

@Papa John I’ll tell you another reason why I started charging. I never charged the fee until I got an employee. We started doing this $150 FB marketing special and it blew up my schedule. But the customers were of such low quality we were only averaging $25 in upsells and everyone was paying with debt cards. Then, I never ask for tips and I have the tip option turned off on my square app. Well………

My employee complained he never gets any tips and asked me to turn the feature back on so he could beg for tips. Then on top of that the square fees and his hourly wages (about $34 an hour after weekly bonus). It was actually digging in a bit.

Now that I stopped the FB marketing to lunch box coupon clippers, things are getting back to normal.

 

[hogjowl]

Not to be like Mikey, but we started charging fees when we noticed the abundance of people who had us remotely keying in their payments.

 

[Nomad74]

One more thing. (I feel like Columbo). But it also really gets under my skin when someone hands me their card and says “I get 2% cash back when I use this card”.

Yeah, no shit and I’m paying it with my 3.8% Square fee.

 

[Mikey P]

Somehow I get the feeling Papa. John doesn't let his customers have a choice and forces them to pay by VenmoPal...

 

[Papa John]

Somehow I get the feeling Papa. John doesn't let his customers have a choice and forces them to pay by VenmoPal...

Sorry---I wanted to pay you back quickly-- and when you asked if I could pay you in Crypto-currency- I used Venmo, because it has that option available.

Maybe I'll convert some of my business earnings to crypto and see what happens.

 

[Mikey P]

Sorry---I wanted to pay you back quickly-- and when you asked if I could pay you in Crypto-currency- I used Venmo, because it has that option available.

Maybe I'll convert some of my business earnings to crypto and see what happens.

To be fair, Ive received funds four more times since you handcuffed me to it, knowing now of the 26% savings over square which I normally use, I'll be pushing more for it, with my billionaire hipster clients.

 

[Papa John]

You have to be doing billions(like Mikey) to realize the difference

I guess you are better at English than Math.

With just $4014.12 in Venmo transactions, I paid $77.12 in fees in just EIGHT WORKDAYS.
If I had used Square, the fees would have been at least $104.37.

$77.12 vs. $104.37 = $27.25-- That's 2-3 lunches or maybe half a tank of gas in your area.

 

[hogjowl]

Is that while using an on site card reader?

 

[Mikey P]

Is that while using an on site card reader?

Venmo transfers are sent by email or by scanning a bar code on either phone

 

[Papa John]

Is that while using an on site card reader?

Yes. The customer scans a QR code for my business account.
Venmo also helps you market your services to other Venmo users-- but I haven't investigated that option yet-- I think it is free.