Merchant Fees

AZ PowerWash Pros

New member
Does anybody on the board add the merchant fees on top of the bill when invoicing?

As example, say your merchant fee is 3% and you completed a $100 job for a residential client.

Does anyone invoice the $100 + $3 so the total invoice is $103 to the customer?

I have recently had a place do this to me. And was thinking it was not a respectable business practice. But then I started thinking about how much additional money I would make if I did it to my customers. And if people are okay with it, then why not?

What are thoughts? Are people okay with this?
 
I don't but I can understand why they do it. You can basically call it a convienence fee because that is exactly what it is. It makes payment easier for customers. I personally would rather be paid with cash or check but that's just me. The more I think about it I might just be adding a "convienence fee" to my credit card customers lol.
 
I believe it should be priced into the service. (Especially for Residential) Even when I buy $9 worth of filters from a local mechanic "Mom/Pop" I pay with a credit card and someone either eats that % or the mechanic has adjusted accordingly for the costs of doing business with credit customers.

I'm nervous about raising prices 2-5% from 5yrs ago, because good customers might be turned off and start bid shopping.

It's part of the business, always seems we are eating more of it than we get back. Object of the game more customers, more money, more problems-----
 
I've always been in the belief it should be "factored in" but more and more I'm considering it. I just charged $8k from a customer and it will cost me $319 to process that. Kind of ridiculous that they eat up that big of a chunk IMO.
 
I would do it as long as its communicated ahead of time and there is a payment option (like cash or check or dwolla) that allows the client to avoid the fee. Alternatively, if you build it in to your price, you can discount 2% for cash/check.
 
Just add it into the original quote and give a cash discount.
 
I always factor mine into the price. For me it's the same as when you buy something online and it says free shipping. You love it and feel like you've made out. Nobody likes to see extra fees. However I'm sure the shipping is factored into the price. It's a mental Jedi thing imo
 
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