If you accept credit cards, here's some important information about credit card processing fees and your ability to offer a discount if your client pays with cash or a check.
According to a press release from NACSOnline:
"Reforming credit and debit card swipe fees took a huge step forward today as the Senate voted 64 to 33 to include Senate Majority Whip Richard Durbin’s (D-IL) amendment to address swipe fee reform as part of the larger financial regulatory reform bill....
Sen. Durbin’s amendment (#3989) seeks to reform swipe fees on debit cards and address the rules and regulations associated with accepting debit and credit cards."
In addition, the press release states (and this is important to both merchants & anyone who uses a credit card):
"The Durbin amendment also prevents card networks like Visa and MasterCard from penalizing sellers for offering discounts to customers. The amendment would allow sellers to offer discounts for customers to use competing card networks or other payment methods."
"What's this got to do with me?" you might ask?
Currently, if you accept credit cards as payment for home staging or for any purchase, you cannot offer your customers a discount for paying by cash or check. If you do, and the credit card company gets wind of it, you will lose your merchant account priveldges.
As a consumer, you may see shops and vendors offering a "pay by cash discount" if/when the Financial Reform Act passes with this ammendment attached. I don't know about you, but I'd be happy to save 2%-3% on my purchases.
If you incorporate 2% or 3% into your home staging bids to compensate just in case your client wants to use a credit card, you may lose more jobs because your bid is higher. If you don't adjust your pricing to factor in the cost of accepting a credit card, you may be hurting your bottom line.
This bill will allow you to offer your clients a discount if they pay with a check or cash, or charge them more if they want to use a credit card.
This amendment to the Financial Reform Act is not a done deal. It still has to be reconciled with a bill that was passed by the House of Representatives.
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2010 RESA Professional Stager of the Year
Michelle has staged hundreds of Los Angeles homes, many of which have sold with multiple offers, above listing price.
She works with home sellers, listing agents and asset managers to prepare homes for sale throughout Los Angeles.
Moving Mountains Design provides vacant home staging, occupied home staging, color consultations, corporate and executive relocations, move organization, redesign, and interior design. We also stage model homes, REOs,foreclosures and auction properties for real estate investors and asset managers.
For more information about our Los Angeles home staging services, contact Michelle at (626)385-8852 or by email.
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This will be a fairly big change if it is passed, and I think there is a fairly good chance it will pass with this amendment included.
While I accept either check or credit card for the initial payment, I require a credit card for any subsequent monthly rental charges. I'm not a bill collector and since initiating my merchant account, I've never had to worry about whether payments will be on time. It's worth whatever it costs me, in the long run. I doubt that I'll change to a "two-tier pricing" model, but it's worth considering.
David: I hope you are right!
Maureen: Its always interesting to learn about others' business models. I'm excited about this particular change in credit card rules for myself and also for my clients.
Thanks for sharing this interesting information.
Great information Michelle, thanks so much for sharing. If you hear more about it, please pass it along. We could really use this for our Hawaii condo rental!
You're welcome Cathy Lee!
Ginger: If I hear anything I'll post it.
I am the same price currently and love my merchant service company and rep. -- but I like the idea of having a cash discount offering. hmmmmmmmmm . . .
thx Michelle, keep up posted!
Karen: I'd like to be able to offer a cash/check discount to my clients. Who wouldn't want to save 2% or 3%?
Michelle, thank you for the post. I'm considering accepting credit cards and this is good to know.