Credit Card Fee Process

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#1
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How does your firm treat the credit card processing fee?

In my past life we took the 3% charge on the firm side assuming our fees already reflected that cost.

The current situation I'm experiencing is the 3% fee being passed to the customer where every time a customer pulls out a card they're hit with the "we charge 3% to use that" speech and I really just hate that, a lot.

I know there are a couple of practitioners here who charge client's a fee for using a check to encourage maintaining a completely electronic office, I'm not quite there yet but would like to get to at least half of our client's using a card.
 

#2
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I internalize it in my fees and don't assess a surcharge to pay with card. It's pretty seamless for my client to pay with card and I prefer them to. The overwhelming majority of my clients pay with card or with EFT. Paper checks are a hassle but I do accept them.
 

#3
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I do the same as ManVsTax. I expect a certain percentage of clients to pay with card so it's built into the price a bit. It's a little unfair to those who pay by cash or check, but trying to add a surcharge seems like a hassle during tax season that I would rather not deal with.
 

#4
sjrcpa  
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We add the surcharge to large (>$15,000) bills paid by credit card.
 

#5
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I just began accepting credit cards this year and I have it set up where the client pays any credit/debit card charges, in addition to his fee. I have not had any push back, but did not have a lot of people pay on-line. My older clients prefer to pay by check.
 

#6
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I am happy to absorb the fee. As a sole practitioner with no admin help, it is cheaper to accept cards than it is to go to the bank, whose hours are 9am to 5pm.
 

#7
smtcpa  
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This scenario always reminds me of some dude in green eyeshades and a pocket protector analyzing the pennies and unable to look at the big picture. Virtually no other industry does this that I have seen and I thought it was illegal in most states, but maybe not. It's a cost of doing business. We send out invoices through QBO and 99% of my clients just pay via CC. I know some firms force larger amounts to be paid via bank debit so that is an option too.

MITAXGUY wrote:The current situation I'm experiencing is the 3% fee being passed to the customer where every time a customer pulls out a card they're hit with the "we charge 3% to use that" speech and I really just hate that, a lot.

 

#8
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https://www.ncsl.org/research/financial ... tutes.aspx

Actually it appears to be the opposite. It's legal in the majority of states. And of the handful of states that have made it illegal, the courts in the majority of those states have ruled the applicable law is unconstitutional and unenforceable.

But I agree with you regarding optics. It's 2022. People expect to be able to pay with CC and DC and not have a fee tacked on. The only business I've encountered in my area that still adds a surcharge is a hole-in-the-wall Szechuan place. I'm under the impression they prefer cash payments and keep two sets of books. But the Dan Dan noodles are delicious. Priorities.
 

#9
CathysTaxes  
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smtcpa wrote:This scenario always reminds me of some dude in green eyeshades and a pocket protector analyzing the pennies and unable to look at the big picture. Virtually no other industry does this that I have seen and I thought it was illegal in most states, but maybe not. It's a cost of doing business. We send out invoices through QBO and 99% of my clients just pay via CC. I know some firms force larger amounts to be paid via bank debit so that is an option too.

MITAXGUY wrote:The current situation I'm experiencing is the 3% fee being passed to the customer where every time a customer pulls out a card they're hit with the "we charge 3% to use that" speech and I really just hate that, a lot.



Recently many restaurants are adding the fees for credit cards. This started with Covid.
Cathy
CathysTaxes
 

#10
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"Recently many restaurants are adding the fees for credit cards. This started with Covid."

I recently noticed a "convenience fee" that a restaurant charged on our bill. After paying, I questioned the waitress about what it was. She stated she was not sure, but it was something related to credit cards. I stated that it was on the bill when we received it - it seems it was charged whether we paid with cash or credit. She said yes it appeared that way to her too and that she was now curious and would have to check on it. Never came back and gave us an answer.
 

#11
Beagle  
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SumwunLost wrote:I am happy to absorb the fee. As a sole practitioner with no admin help, it is cheaper to accept cards than it is to go to the bank, whose hours are 9am to 5pm.



Utilize your bank's app to electronically deposit them. You'll need to go in and get your monthly deposit limit raised which they are fine with if you aren't a new customer. Our bank used to be right across the street from the office and now the closest location is 5 miles away because they closed most of them when Covid hit. Like with so many "services" - when you don't have a relationship with the employees you quickly lose all connection with the company.
 

#12
TheGrog  
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Government entities do this too. Nearly any time I've looked into paying any government entity anything online they add the CC fees.
 

#13
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I always assumed that when you signed an agreement with a credit card company that there was language in the contract that prevented you the vendor from charging a fee above the cash price. In essence, they prohibited you from charging add on fees.

I knew the IRS did it and the local government do it for real estate taxes but I did not think restaurants were allowed to do it.

We have been able to hold out and do not accepts credit cards or electronic payments. Check only. Our secretary has plenty of time to do a weekly deposit even during tax season so that is not an issue.

I am sure at some point down the road we are going to have to offer the credit card option
 

#14
sjrcpa  
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A number of my clients say they don't have checks.
 

#15
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I went with CPA charge this past year. They have the option to have the clients pay the fee and stated a large portion of the CPA firms they set up are now going with that option. I'm of the opinion that if the client wants to pay by credit card for the miles or cash back, they should pay for that privilege, not me.
 

#16
HowardS  
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Wow...I pay for almost everything with my credit card. If those merchants added that fee onto my purchase they would be out the door. Just add it to your price and offer a discount for paying with cash or check.
Retired, no salvage value.
 

#17
sjrcpa  
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HowardS wrote:offer a discount for paying with cash or check.


That's not legal in some places.
 

#18
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Beagle, I have tried electronic deposit with both banks i have been with. Neither one is satisfactory and when I started spending more time scanning in than actually going to the bank, I gave it up. I could never be sure what had gone through and what hadn't. I daresay I could change banks but no bank, or tax professional for that matter, is perfect.

Years ago, my dry cleaner started charging 50 cents for card transactions. So I started paying with cash and predicted to the attendant that the owner would change it back within weeks. Indeed, he discovered that banks charge for cash deposits and the surcharge disappeared, to be replaced with a 50 cent price increase.
 

#19
HowardS  
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That's not legal in some places.

Protected under Federal Law by the Durbin amendment to the 2010 Dodd Frank Wall Street Reform and Consumer Protection Act.
You may be thinking of surcharges.
Retired, no salvage value.
 

#20
sjrcpa  
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I stand corrected.
I remember there was an issue (a long time ago) when gas stations would give a discount for cash vs credit card payment.
 

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