OK, guys, here is a thought. I setup credit card merchant accounts for consumers...and have been a DJ for 28 years.
I charge 1.69 per transaction plus .30 above interchange plus 9.5 cents per transaction, (even less on debit cards...around 1.0 to 1.3) HOWEVER, if you are not swiping that card physically through a machine...also known as a "QUALIFIED transaction" in credit card lingo ( and I dont care what company you are with) you will be paying in the neighborhood of 3-3.5% per transaction plus .30 interchange. That is known as "Non Qualified" (in other words, you took the card over the internet or phone and did not physically swipe it through a credit card machine.)
So lets do the math....
At a 3 % charge on $100.00 you are paying $3.30 for every $100.00 you generate. If you do a $500.00 gig...then it's $16.50...if it's $1000 gig.... $33.00. Roll those charges into your final price and let the customer pay the bill (if you desire and yes it is completely legal to charge a service charge...just roll it into the final total.) If you desire to not do this, then think about this... $33.00 to get a $1000.00 gig? You are going to net over $900.00 on that one gig!!!
Lets look at it fromn an annual standpoint. In year one of taking cards, I did over $5000.00 on my first year via cards. So here was my cost breakdown.
1. CC machine - $250.00
2. Monthly fee - $8.95/mo or $107 a year.
3. Annual renewal - $79.00
4. Factor in the transaction fees of .30 for a few of those gigs (lets say all 5 gigs at $1000.00 each was $1.50 in transaction fees.
TOTAL: $437.50....less $5000.00 in weddings...PROFIT WAS....$4562.00!!! Was it worth it?..hell yeah!
Take $250.00 off the machine cost and its even more profit!! When you think about it, that just under half the cost of doing HALF of ONE WEDDING PER YEAR!
ONE thing I will advise and I am not saying this because I am inthe CC biz....DO NOT DO PAYPAL! Their rates are in the area of 4-5% and higher! If for any reason you get a bad card (almost doesnt happen these days) your CC company covers it and you still get it reimbursed...and the card company goes after the bad guy! YOU STILL GET PAID! Additionally, trying to jump through hoops through paypal for reimbursement can be one big pain the a$$!
One caveat I will throw at you also is when it comes to deposit, take the card, any transactions within 30 days or less,...take cash!! Even though a dispute can happen on cards and you still get
paid, why go through the BS of some customer who was drunk who claims he is not going to pay you....30 days or less, cash...PERIOD! If the customer wants to prepay the remainder of the event and there is more than 30 days to go, then you can take the card but if less than 30 days...CASH IS KING!
Any questions, please feel free to call me at 603-436-4423 or email me at email@example.com
and I will be happy to answer any questions in regards to this.
Bank Card Depot
Hot Jocks Disc Jockeys (http://www.diskjockey.com