Approve the Cookies
This website uses cookies to improve your user experience. By using this site, you agree to our use of cookies and our Privacy Policy.
OK
Index  •   • New posts  •   • RTAT  •   • 'Best of'  •   • Gallery  •   • Gear  •   • Reviews
Guest
New posts  •   • RTAT  •   • 'Best of'  •   • Gallery  •   • Gear  •   • Reviews
Register to forums    Log in

 
FORUMS Post Processing, Marketing & Presenting Photos The Business of Photography 
Thread started 07 Jun 2016 (Tuesday) 07:48
Search threadPrev/next
sponsored links
(this ad will go away when you log in as a registered member)

Credit Card Fees

 
huntersdad
Goldmember
4,582 posts
Likes: 201
Joined Nov 2008
     
Jun 07, 2016 07:48 |  #1

Wondering how you guys account for credit card fees in your pricing structure. Do you add a line item on your invoices? Do you eat them as a CODB? They're relatively low considering you get immediate payment, but I can see how they could really add up over time.


Facebook (external link)

http://WWW.BLENDEDLIGH​TPHOTOGRAPHY.COM (external link)
5D4 / 35 F2 / 50L / 85 1.8

  
  LOG IN TO REPLY
sponsored links
(this ad will go away when you log in as a registered member)
DagoImaging
Goldmember
Avatar
1,908 posts
Gallery: 19 photos
Likes: 1157
Joined Nov 2012
     
Jun 07, 2016 07:52 |  #2

My prices have them figured in, that way the customer doesn't think he's being charged for them. I think a separate line item makes them feel you're needling them for every penny.


Sony a6300/ 16-70/4 / 70-200/4 G / Sony HVL-60M
https://designcostello​.com/ (external link)

  
  LOG IN TO REPLY
moose10101
registered smartass
1,642 posts
Gallery: 6 photos
Likes: 197
Joined May 2010
Location: Maryland, USA
     
Jun 07, 2016 08:49 |  #3

That would be considered a surcharge for using the card. While there is no longer any federal prohibition against that, some states still don't allow it (California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas).

Even if you're not in one of those states, build the fees into your pricing structure. If you like, you can offer a discount for cash payment.




  
  LOG IN TO REPLY
Bassat
"I am still in my underwear."
8,075 posts
Likes: 2733
Joined Oct 2015
     
Jun 07, 2016 09:16 |  #4

moose10101 wrote in post #18031861 (external link)
That would be considered a surcharge for using the card. While there is no longer any federal prohibition against that, some states still don't allow it (California, Colorado, Connecticut, Florida, Kansas, Maine, Massachusetts, New York, Oklahoma and Texas).

Even if you're not in one of those states, build the fees into your pricing structure. If you like, you can offer a discount for cash payment.

Some gas stations in northern Indiana do this. Quite popular. It usually runs between 2-3% of the per/g price.




  
  LOG IN TO REPLY
mikeinctown
Goldmember
2,096 posts
Likes: 227
Joined May 2012
Location: Cleveland, Ohio
     
Jun 08, 2016 09:32 |  #5

Offer a cash discount if you want, but don't add the fee on top. To me that would be like you going to Walmart and getting $100 worth of groceries and then Walmart charging you an extra $3 when you swipe your card. Most people wouldn't put up with it.




  
  LOG IN TO REPLY
Littlejon ­ Dsgn
Goldmember
3,266 posts
Likes: 890
Joined Feb 2012
Location: Sandy, Oregon
     
Jun 08, 2016 23:52 |  #6

Build it into your prices. It's a CODB




  
  LOG IN TO REPLY
kjonnnn
Goldmember
1,204 posts
Likes: 86
Joined Apr 2005
Location: Chicago, Illinois
     
Jun 12, 2016 16:59 as a reply to  @ mikeinctown's post |  #7

Many businesses do just that for online payments. Its called a convenience fee.




  
  LOG IN TO REPLY
moose10101
registered smartass
1,642 posts
Gallery: 6 photos
Likes: 197
Joined May 2010
Location: Maryland, USA
     
Jun 13, 2016 08:53 |  #8

kjonnnn wrote in post #18037266 (external link)
Many businesses do just that for online payments. Its called a convenience fee.

We're advising to NOT show it as a separate fee. And not many businesses do that for online payments; aside from a rent payment, I haven't seen any business charge a convenience fee.




  
  LOG IN TO REPLY
mikeinctown
Goldmember
2,096 posts
Likes: 227
Joined May 2012
Location: Cleveland, Ohio
     
Jun 13, 2016 09:48 |  #9

moose10101 wrote in post #18037823 (external link)
We're advising to NOT show it as a separate fee. And not many businesses do that for online payments; aside from a rent payment, I haven't seen any business charge a convenience fee.

Companies which got you by the nuts will do this. For example the electric company here will charge you a $9 "service fee" if you want to use a credit card rather than your bank account. Since I already owe them and I have zero choice of other suppliers, I have to follow their rules.

For a business in competition with others, I would not do this as it just makes you look cheap and money hungry.




  
  LOG IN TO REPLY
jmweb
Senior Member
Avatar
518 posts
Likes: 15
Joined Jan 2011
Location: PEI
     
Jun 20, 2016 22:04 |  #10

CODB. I'd rather 99% of something then 100% of nothing.
And people spend more when they can buy on a credit card.




  
  LOG IN TO REPLY
STPimages
Member
Avatar
35 posts
Likes: 10
Joined Dec 2015
     
Jun 29, 2016 13:09 |  #11

It also depends on your volume of client purchases on credit cards. I am a niche photo studio and I don't have a huge number of transactions every month, but each one is larger than an average photography invoice. When it is time to pay the invoice, I urge my clients to use checks to pay me as it saves me on credit card fees. Most of my clients are sympathetic to a small business person and they are also sensitive to the degree in which credit card clearing houses disproportionately penalize small business (ESPECIALLY American Express).

In Fiscal Year 2015, I paid just short of $2,000.00 in credit card fees to card clearing companies for the "convenience" of having my clients use credit cards. This $2,000.00 number is smaller than it WOULD have been due to the fact that I am able to convince roughly half of my clients who initially pull out a credit card to put the card back up and to write me a check.

I have several invoices a month that are between $1,000.00 and $2,000.00. When someone asks if they can pay with a credit card, I cringe. When you see the line item credit card fees for each $1,000.00+ transaction on your monthly statement, it puts the impact of credit card fees to your bottom line into perspective quickly.

Summarily, my prices are set to factor in all fixed and variable costs, including my annual credit card fees. These fees are ultimately an ugly CODB that we all must bear, so price accordingly.


Todd Parker, CPP
STP Images
Houston, TX

  
  LOG IN TO REPLY
CheleA
Senior Member
354 posts
Gallery: 5 photos
Likes: 154
Joined Jul 2014
     
Jun 29, 2016 13:28 |  #12

We do have a business, not photography, and can tell you that clients don't appreciate surcharges -- you should just adjust for it in your invoices as a CODB. A surcharge might have a negative impact on your business. Back when gasoline prices were very high, some gas stations had a separate(higher) price for credit cards, you could clearly see those stations had much less customers than the ones that had the same price for cash/credit --- even if the prices were the same as the ones adding the surcharge. It seems to be a mentality/culture things:(




  
  LOG IN TO REPLY
moose10101
registered smartass
1,642 posts
Gallery: 6 photos
Likes: 197
Joined May 2010
Location: Maryland, USA
     
Jun 30, 2016 09:54 |  #13

CheleA wrote in post #18053375 (external link)
We do have a business, not photography, and can tell you that clients don't appreciate surcharges -- you should just adjust for it in your invoices as a CODB. A surcharge might have a negative impact on your business. Back when gasoline prices were very high, some gas stations had a separate(higher) price for credit cards, you could clearly see those stations had much less customers than the ones that had the same price for cash/credit --- even if the prices were the same as the ones adding the surcharge. It seems to be a mentality/culture things:(

It's a "be honest about the price" thing.




  
  LOG IN TO REPLY
Snydremark
my very own Lightrules moment
18,402 posts
Gallery: 44 photos
Likes: 1453
Joined Mar 2009
Location: Issaquah, WA USA
     
Jun 30, 2016 10:46 |  #14

CheleA wrote in post #18053375 (external link)
We do have a business, not photography, and can tell you that clients don't appreciate surcharges -- you should just adjust for it in your invoices as a CODB. A surcharge might have a negative impact on your business. Back when gasoline prices were very high, some gas stations had a separate(higher) price for credit cards, you could clearly see those stations had much less customers than the ones that had the same price for cash/credit --- even if the prices were the same as the ones adding the surcharge. It seems to be a mentality/culture things:(

All of the gas stations in our region are back to doing this; it drives me batty


- Eric S.: My Birds/Wildlife (external link) (7D MkII/5D IV, Canon 10-22 f/3.5-4.5, Canon 24-105L f/4 IS, Canon 70-200L f/2.8 IS MkII, Canon 100-400L f/4.5-5.6 IS I/II)
"The easiest way to improve your photos is to adjust the loose nut between the shutter release and the ground."

  
  LOG IN TO REPLY
Bassat
"I am still in my underwear."
8,075 posts
Likes: 2733
Joined Oct 2015
     
Jun 30, 2016 12:41 |  #15

moose10101 wrote in post #18037823 (external link)
We're advising to NOT show it as a separate fee. And not many businesses do that for online payments; aside from a rent payment, I haven't seen any business charge a convenience fee.

You've obviously never ordered pro sports tickets online.

I get Cubs tickets twice a year. Ticket price + convenience fee (~$15) + delivery (~$10 EACH, then they mail all tickets in one envelope for $0.79), + at least three different Illinois taxes.




  
  LOG IN TO REPLY
sponsored links
(this ad will go away when you log in as a registered member)

3,872 views & 2 likes for this thread
Credit Card Fees
FORUMS Post Processing, Marketing & Presenting Photos The Business of Photography 
AAA
x 1600
y 1600

Jump to forum...   •  Rules   •  Index   •  New posts   •  RTAT   •  'Best of'   •  Gallery   •  Gear   •  Reviews   •  Member list   •  Polls   •  Image rules   •  Search   •  Password reset

Not a member yet?
Register to forums
Registered members may log in to forums and access all the features: full search, image upload, follow forums, own gear list and ratings, likes, more forums, private messaging, thread follow, notifications, own gallery, all settings, view hosted photos, own reviews, see more and do more... and all is free. Don't be a stranger - register now and start posting!


COOKIES DISCLAIMER: This website uses cookies to improve your user experience. By using this site, you agree to our use of cookies and to our privacy policy.
Privacy policy and cookie usage info.


POWERED BY AMASS forum software 2.1forum software
version 2.1 /
code and design
by Pekka Saarinen ©
for photography-on-the.net

Latest registered member is samsson
965 guests, 276 members online
Simultaneous users record so far is 15144, that happened on Nov 22, 2018

Photography-on-the.net Digital Photography Forums is the website for photographers and all who love great photos, camera and post processing techniques, gear talk, discussion and sharing. Professionals, hobbyists, newbies and those who don't even own a camera -- all are welcome regardless of skill, favourite brand, gear, gender or age. Registering and usage is free.