|
|
|
| Credit Cards are a double-edged sword-- By accepting them, the
clients feel more secure, they earn miles and statistically the
probability of a sale is increased. On the flip-side, processing
cards costs about 3.5% of gross sales. |
| |
|
3.5% of a year's worth of rentals could be a lot of money, so it is
important to discuss. |
| |
| Here are the realities: |
| |
|
I always ask for checks first. The way I calculate commissions, it
costs me as well as the owner. Although the cost is actually 3.5%; I
only charge the owners 2.5% because that is what Penny does. I try
to get them to pay by check-- but about 90% of my contracts pay by
card these days. In our on-line world-- it is a cost of business. |
|
|
|
As an owner-- you need to understand that (IF) by accepting cards
gets you just ONE additional rental a year-- the "profit" from that
rental more than covers all the rental card fees you MIGHT have had
to pay for the full year. If the "profit" of a rental week is
roughly 60% of the rental rate-- just one 60% "profit" covers 24
charges of 2.5%-- and that assumes all 24 of the other rentals used
cards. It is actually very much worth it to accept cards. |
|
|
|
Penny charges every rental contract the 2.5% credit card fee-- I put
it on all my invoices as well--unless I know they will use a check
from the start. Sometimes people pay the deposit by check and then
forget to send the balance 60 days out--then give me a card over the
phone-- it all seems to work out- |
|
|
|
|
| |
