Cheapest Option to Pay Credit Card to Tradies

I pay a lot of tradies for my house and rental properties, so I was just wondering if anyone had suggestions on how I could pay them via credit card indirectly so they don’t incur as many fees?

Some do accept credit card with a very small fee or none at all but most obviously prefer a bank account! I’ve got a few regulars that are open to any method I suggest, so hence why I’m asking the OzBargain community.

Also I was thinking Zip but I have no idea what’s involved in regard to costs and then them getting it set up.

Comments

  • +1

    As a small business owner in the semi trades sector, credit card fees can pose a significant challenge. While I recognize that many customers value the convenience of card payments (and can earn points), the associated processing costs often cut into profits and overall income—costs that are frequently not factored into the initial quote.

    Although these fees are considered operating expenses, most businesses do not include them in their quotes. If they did, it would likely mean raising the overall quote price, which could lead to losing business to competitors offering lower quotes.

    Setting up alternative payment options like Zip requires considerable effort, much like setting up a payment gateway. Providers such as Zip would most likely charge a percentage fee, similar to other card processing services.

    I've only had 1 customer want to pay via Credit Card because it was paid for by the business, and it was a $40 card fee on a $2k quote (customer paid the surchage). All my other customers have always paid via bank transfer. This is over a 18 month period.

    I guess this also starts a debate about the Computer Industry who all seem to charge a Surchage. I generally prefer to go with someone who doesn't have a surchage, so it is swings and round abouts.

    • Thanks so much for your detailed reply, really appreciate it and that’s exactly what I was thinking. I haven’t carried a wallet for years so I only pay with credit card and my last option is to do a bank transfer. If they are cash only and friends/family with me don’t have any then I miss out.

      Just thought there might be someone on here that is figured out a loophole so to speak.

      • I guess it depends on what sort of trade and the type of callout/work required. All my stuff is pre-booked and pre-quoted before the job is done. I get a deposit first and then final part of installation (50% of install) is paid once the work is carried out.

        I guess for those emergency call outs or unknown work, then it makes it hard but I think most send an invoice for payment later. In the odd case, that is what I have done and had no issues with payment.

        I am all for a loophole, but I don't think there is much unless someone has a flat rate fee per month for the service with no processing fees, but I think that requires a minimum spend (like SmartPay)

  • Sniip?

    • Yeah think sniip only charges 1.29% for amex payments which aren't business related so could work?

    • Cheers sounds like a good option, so even if it’s not a BPay bill you can upload normal invoices?

      • there's restrictions on what the business is but you can always upload and see if it gets approved

        • Sweet thanks mate, seems like there is no referral system?

  • -2

    Why are you worrying about this at all. Let them tell you how they want to be paid.

    • +1

      OP might want to earn CC points.

  • +1

    The correct answer is to negotiate a 1.65% discount to pay by bank transfer. Ask them whether they will give you a 4% discount if you pay within 7 days.

    • +1

      Please explain. Generally all quotes wouldn't take Credit Card Payment Surchage into account? and why the 4% discount if paid within x days?

      • and why the 4% discount if paid within x days

        and the cost of money not coming in plus the cost of admin. You think aged debtors reports and time to chase up phone calls & reconciling is free?

        just wondering if anyone had suggestions on how I could pay them via credit card indirectly so they don’t incur as many fees

        OP seems to point to all the fees are wrapped up in their quotes

        I can guarantee you the hidden cost of figuring how to save on surcharges have cost us more than surcharge themselves. It is like a national sport just behind cost of housing.

        • +2

          and the cost of money not coming in plus the cost of admin. You think aged debtors reports and time to chase up phone calls & reconciling is free?

          Just part of business. Doesn't qualify for a discount in my view. If you do a good job, people will pay quickly. I've only had maybe one or two people that I have needed to chase up. It wasn't that much effort.

          OP seems to point to all the fees are wrapped up in their quotes

          I can guarantee you the hidden cost of figuring how to save on surcharges have cost us more than surcharge themselves. It is like a national sport just behind cost of housing.

          No, the OP is saying that Credit Card fees are not included and everyone says it is x% for Credit Card payments. All quotes are excluding any surchage fees.

          • +1

            @geekcohen:

            Just part of business. Doesn't qualify for a discount in my view. If you do a good job, people will pay quickly. I've only had maybe one or two people that I have needed to chase up. It wasn't that much effort.

            Just part of useless overheads of the business

            Just because it is your experience doesn't mean it happens for everyone. Not one size fits all. Look at dodgy builders in Melbourne not to work for group in Facebook.

            • +1

              @netjock: Of course everyone's experience is different, but I don't think that it allows people for a discount because they are good payers.

              • -2

                @geekcohen: Unless you are turning over 100s of thousands of dollars I'd think fiddling around to save less than $1600 over how many invoices?

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