Accepting Credit Cards at 0% cost
Credit card fees for merchants have drastically gone up in recent years, especially for reward card purchases, making credit card fees one of businesses largest expenses. Interchange fees for reward cards have gone up by 24% in a recent 4-year period. The highest reward card fees to a merchant are now around 3% of the transaction total (not including what the markup from whomever sold you their credit card processing). Many people have probably seen Samuel L. Jackson TV commercials promoting Capital One’s Quick Silver credit card, paraquoting, “The Quick Silver credit card will give you 1.5% cash back on all of your purchases.” Who do you think is actually giving these customers 1.5% of their cash back on their credit card purchases? You guessed it- you, the merchant.
What’s a business owner to do?
Do nothing Raise the products or services prices to account for higher credit card fees Offer a cash discount Don’t accept credit cards Or, provide your customer a choice when they pay with a card to pay a surcharge or not- 0% credit card costs to the merchant All of these options have their pluses and minuses, but with the ever higher and higher fees credit cards are charging to merchants, there are other methods where technology and consumer choice can help mitigate these fees.
0% credit card cost is relatively new legal method of accepting card payments in the US. The credit card companies fought to not allow consumers a choice to pay a surcharge with credit card or zero fees with a debit card. The credit card companies make much less money with a debit card opposed to a credit card... This case went all the way to the US Supreme Court this decade. The credit card companies lost and consumers being able to choose to pay a surcharge with a credit card or zero fees with a debit card is now legal in 45 states. The remainder of the 5 states will likely be joining the other 45 states in the near future as there are still ongoing court proceedings.
The US is now following the Australian model which has been allowing merchants to surcharge since 2003. Currently, 42% of all merchants in Australia pass on a surcharge to customers who use a credit card.
Here’s an option that you might not know about, until now:
When your consumer decides to pay with a card, they have two options. If they use a credit card, a small fee will be charged to their card. If they use a debit card, there will be no fee to the consumer. Our software does all the work and explains to the customer of their choice prior to the charge being authorized.
What exactly are the costs to the merchant and to the consumer?
For credit cards: Merchant pays zero credit card fees, the consumer pays 3.5% of the transaction amount
For debit cards: Merchant pays 1% + $0.25/authorization, the consumer pays Zero fees
A card swiper is not needed: credit card information can be typed in a phone, computer over the phone and in-person. A 'brick' card swiper/dipper is available if needed.
Works with online sales/invoices
Simple application process, no upfront cost, no term contract, no cancellation fee and complies with all credit card rules and regulations
If you auto batch by 8:00 PM EST, you get your money the next day
Up-and-running within a week
Benefits to the Merchant:
Being fair to your consumer by offering them a choice to pay a fee or not, while eliminating your credit card fees, which can be up to 3% of your total credit card sales.
Simple to use and all charges are viewable through real-time online portal.
Support: our team is there when you need us, but it truly is very straight forward.
We realize this solution is not for everyone. But, you now have the opportunity to no longer pay credit card fees, forever. Reach out through ASO or here if you are interested in discussing further: https://www.lomasolutions.com/contact
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Loma Solutions represents a 0% credit card fee solution. We have 1000's of customers in the US and our solution makes auto shop owners thousands of extra dollars every year.
How does 0% processing work?
When your customer decides to pay with a card, they have 2 options. If they use a credit card, a small percentage of the transaction will be charged to their card. If they use a debit card, there will be no fee to the customer. Our software does all the work and explains to the customer of their choice prior to the card being authorized.
What exactly are the costs to the merchant and to the customer?
For credit cards: Merchant pays zero credit card fees, the customer pays 3.5% of the transaction
For debit cards: Merchant pays 1% + $0.25/authorization, the customer pays 0 fees
- A card swiper is not needed: credit card information can be typed in a phone, computer or over the phone. There is a 'brick' card swiper if needed*
- No set-up costs or any other fees
- Our agreement is month-to-month
- If you auto batch by 8:00 PM EST, you get your money the next day
- The solution complies with all card rules and regulations
- We'll have you up-and-running within a week
Benefits to the Merchant:
*** You are being fair to your customer by offering them a choice to pay a fee or not, while you are eliminating your credit card fees, which can be up to 2.5% of your total card sales.
- Simple to use and all charges are viewable through our real-time online portal.
- Support: our team is there when you need us. We will show you and anyone on your team how to use the solution, but it’s very straight forward.
Making you more money!
If your current credit card fees are 2.5% of your total card sales, for every $50,000 in credit card transactions, you'll put an extra $1,250 in your pocket.
* we will provide you with a ‘brick’ terminal: $35/month if needed. This includes free paper re-supplies.
Reach out if you'd like to discuss.
Doctor's Orders The field of automotive repair and body work has always been plagued with a few unscrupulous individuals. But, I would say that every trade has their share of them as well. I pride myself on doing the best that can be done for my customers and I don't take kindly to anyone who thinks this job is anything but a professional. This is not a job that can be mastered overnight; it takes years of experience and understanding. Even though I carry the title “ASE Master Technician” I don't consider myself a “Master” of the automotive field. I may have “mastered” the trade but not the technology that continually changes. That's an ongoing education which each and every mechanic deals with. But, with that said, there are still some individuals that still look down upon the automotive trade as some sort of second class job. Recently I received an email from one of those type of individuals. Several years ago I wrote an article titled, “Diagnostics Fee or Diagnostics Free” which was published in a variety of magazines. The article was primarily about the issues of a diagnostic fee for testing and evaluating a vehicle. A copy of one of the magazines was in a waiting room at a repair shop where this guy was getting his car to be repaired. He happens to be a dentist, which I consider as much a professional field as mine. However, this guy... doesn't see it that way. His email went something like this: I read through your 'two cents' on engine diagnostics and I could not agree more. However, I do have a bone to pick. Charging for a diagnostic is fine but where do you draw the line? I am a general dentist. For a new patient I charge $39 for an exam (cleanings from a hygienist are $60). I take roughly 25 minutes to complete an exam on a patient. Some patients take longer as they have a more difficult case and sometimes they just have more questions. I have spent 9 years in college, at a cost of over 200k, and roughly 600K on my practice (I have lots of fancy equipment too, even more expensive than the 'diagnostic computer') AND I am dealing with the actual health and well-being of mankind (screenings for head neck cancer, dental caries, oral path., etc., etc.) If I used your kind of math I guess I should charge more in the neighborhood of $500 for an exam (my education alone was probably more than 20 times yours so the math is still WAY low). But I don't charge that much. A true professional would realize when a charge is ridiculous and when it is not. A diagnostic charge from a mechanic should be in the neighborhood of $20. If you are charging in the near $100 range I would consider removing the self-titled "professional" from your website. Which I found funny that you brought it up anyway. Your computer is a one-time purchase. You don't throw it away when you are done so quit trying to factor in the computer cost like it is a consumable. A mechanic's pay at best is $35 an hour. A $20 diagnostic over 5 minutes is more than enough for that and even overhead. Actually, you just gave me an idea. I am going to tell my patients I now have a "parts, labor, and supplies" fee. That would be great. Imagine the next time you come into my office and I say that my labor fee is over $500 an hour. My patients would leave. I can't believe a mechanic thinks charging $100 an hour or labor is reasonable when everything else is also marked up 300% PLUS!!!! ... It is laughable. Anyway, I agree....but let’s get realistic. This is a junk email and address, no need in trying to contact me with your response. He agrees? Realistically, I find that hard to believe. These are the typical misguided perceptions that still linger in some peoples conceptions of the auto mechanic. Apparently, according to this guy... I'm not worthy of calling myself a professional because I'm “just” a mechanic. It's sad to say that there are still people out there that take this dim view of the automotive mechanic world. It could be this guy is only retaliating from a previous experience with his car that didn't go right, or it could be he was at one of those “unprofessional” shops that tried to tackle a job they shouldn't have been taking on. Maybe he thinks all mechanics alike, and not one of us is a true professional in our trade. Obviously, after reading this, I have come to realize that all dentists are not alike. I know my personal dentist respects my profession... and has a great amount of appreciation for my trade, just as much as I do for his skills and abilities. Even though in the email he stated there was no need in a response, well, there is a way to respond. Here it is. Those years you spent in college almost equals my years of training... your investment into your field is acknowledged and is definitely a part of both our trades. Mind you, the countless changes and improvements in the equipment and procedures in the auto industry (and dentistry as well) doesn't offset the cost of doing business in any shape or form. You'd think it would, but, as fast as the auto manufacturers introduce new systems so does the equipment to diagnostic them change. Honestly, I feel sorry for this guy. He seems kind of bitter. As a mechanic, I work on everything from the front bumper to the rear-end of the car. This guy... using a car as the comparison... only works on the shiny grill that everyone first sees. I mean really... he only has two models to work on and the last time I looked both models have the same 32 components to deal with. But, let's not reduce ourselves to his level of explaining the differences between the two professions. Oh wait… I already did. My bad… I guess it’s a lot easier to be condescending than it is to pull teeth, huh, Doc.? Sorry Mr. Dentist, I don't think I'll be following “Doctor's Orders” as you clearly state them in your email. I think this time you should take my advice and try to be more respectful to the guys and gals that keep your cherished ride on the road. There's no set fee for diagnostics, there's no 300% mark-up on parts, and there definitely isn't any magic one time purchased machine that will diagnose a car. Maybe you should try to be a little more understanding and a bit more professional, because right now... you're not!
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There are many different website services, packages, and programs available when choosing the right company/webmaster for your auto repair business. You can sign up to a service that provides a robust website, SEO (Search Engine Optimization), analytics, marketing services, social network management, integrations, etc. You can also sign up for much simpler solutions which usually only include a website and some SEO. You can also try to use an online website builder to get yourself online with something very basic, which is better than nothing. So many different option and they all have their associated costs. In some cases there are initial startup costs as well. In most cases however, there are monthly costs associated with operating a business website.
Please take a moment and share, if you would like, about your website costs and associated services. Please also take a moment to answer a few quick question in the attached poll. Thank you.
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By Joe Marconi
We all have those customers that focus on price alone. And we all struggle with our persistent attempts at converting them into believers. Believers of the concept that, while we cannot totally dismiss price, it’s the value of the product or service the customer needs to consider when making a purchase. What’s funny about these customers is that each visit tends to start with a complaint about price, even before the car is looked at. We recently had a situation that started off on the wrong foot, with price being the issue; but ended up a win for us, and for the customer.
Charlie Challenge (not his real name) arrived at our shop and asked for an estimate on replacing the timing chain for his Nissan Altima. My service advisor responded with, “Mr. Challenge, that’s a big job. How do you know your car needs a timing chain?” Charlie replied back, “Another shop checked it out and they told me it does. Can you please give me a price?” My advisor continued with, “Well, before we do anything, we need to perform a few tests to make sure you really do need a timing chain.” Charlie emphatically replied back, “And how much is that going to cost? All you guys want is my money! I asked for one thing; a price on a timing chain and you just want to make more money on something I already know I need!”
It took a lot of composure, but my advisor calmly stated all the reasons why testing is the best way to go, emphasizing the fact that if we replace the chain and it’s not the problem, the money spent would be wasted. Charlie shook his head, threw the keys on the counter and authorized the testing.
I’ve known Charlie for a long time. He’s not a bad guy. But price is always the topic of discussion. He has told me in the past that I should take a look at what other shops charge, and be more competitive with my prices. I have told Charlie that I don’t, and never will, price my services by what other shops are charging. I have also told him to look beyond price and look at the value you get. Besides, all the quality shops that I know are pretty much the same when it comes to pricing.
During the write-up process, Charlie revealed to my service advisor that the check engine light had been on, and that’s why he took his car to the other shop. The other shop replaced a valve timing solenoid, but that didn’t fix the problem. He was then told that the next step was to replace the chain.
Later that morning, the car was dispatched to a technician. A multipoint inspection was performed, along with all the tests related to the check engine light; which was a timing error. After the MPI and the tests were completed, we found a few things wrong with Charlie’s car. His Altima needed an oil change service, a battery, rear brakes, an air filter, the cabin filter had a mouse nest in it and the car needed an intake timing control sensor, not a timing chain. This engine has two intake control solenoids. One was supposedly replaced by the other shop. So, did this car have two bad sensors? Or was the wrong sensor replaced by mistake?
When my service advisor called Charlie to tell him the good news, he was silent for a moment. He was shocked that the car didn’t need a timing chain. He authorized the solenoid replacement, the oil change and replacing the mouse-infested cabin filter. He declined the other work.
I purposely did the follow-up call with Charlie a few days later. He was happy to hear from me and told me that car hadn’t run this good in years. I had to needle him a bit, “So Charlie, are we really expensive? We saved you a ton of money by doing the tests first and not just replacing the chain.” He said, “Ok Joe, I get it, I really do this time.”
During our conversation, Charlie did confess that he didn’t go to another shop, but actually went to that all-knowing, all-powerful place on the internet known as Google. It was Charlie that replaced the solenoid, not realizing there were two, and not knowing how to properly test the system either.
When I asked Charlie why he didn’t let us replace the battery, air filter and the rear brakes, he replied, “Joe, come on, I can do that work myself, and besides, you guys are expensive.”
Sometimes you win the battle, but it’s hard to win the war with some customers.
This story was originally published by Joe Marconi in Ratchet+Wrench on October 1st, 2019
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By Joe Marconi
If there is one thing that doctors and dentists do very well, it's that they book the next appointment for their clientele. I have heard every excuse possible why many auto repair shops don’t do this. But the fact remains that everyone in your shop today will need future service and repairs. And the question is, “Are they coming back to you.”
Another reason for booking the next appointment is that there are times when not all the recommended services were done today. Some were postponed due to budget and prioritizing what’s most important. So, before that customer leaves, make sure the customer commits to a future date to have the work done. After all, why did you recommend it in the first place?
Car delivery is the time to review all the work done today, continue to build the relationship and to inform your customers of upcoming work and services. But don’t leave it to chance that the customer will remember. Be proactive, discuss future dates and put those dates in your calendar.
Lastly, call customers a few days before the appointment as a reminder. If the appointment has to be moved, then move it.
By Joe Marconi
A few years ago, some friends and I were having dinner at a local restaurant. There were six of us enjoying the food and having a great time. A few minutes after our waiter served us our coffee and dessert, the owner of the restaurant walked over to us, introduced himself and said, “I have people waiting for this table; how much longer do you think you’ll be?” Shocked by his comment, I hesitated for a second, looked up at him and said, “No worries, we’re done.” With just a few simple words, the owner of the restaurant wiped out the pleasant experience we were all having.
As we were finishing up, we couldn’t help noticing the stares from our waiter and the owner. Their eyes were laser-focused on us. They made it obvious that they wanted our table. We didn’t say anything to our waiter, or the owner. But we told each other, “We’ll think twice about coming back to this restaurant.” None of us ever did go back to that restaurant. And I heard similar complaints from other friends about that restaurant. About a year later, that restaurant closed its doors for the last time.
As a business owner, I fully understand what each table means in terms of profit. The tables at a restaurant are no different than the service bays in our business. The more people you can process through the restaurant, the more profitable the restaurant is. The more cars we can process through our service bays, the more profitable we are.
While I don’t fault the owner of the restaurant for recognizing the need to be profitable, I do fault the owner for not understanding a basic rule in achieving success in business. And that is: You build a business one customer at a time and by developing strong, long-term relationships with those customers. And to maintain that success, a business must continuously cultivate those relationships.
The owner of this restaurant didn’t get it. All of us had dined at his establishment before. The owner didn’t see us as an opportunity to strengthen the relationships. He saw the opposite. By asking for our table, he put the emphasis on his next sale and eliminated any chance of us returning again. Losing customers, and not understanding why, is the kiss of death for any small business.
What the owner determined important was profit per table, per person. The process to get people fed and done became the primary objective, when it should have been ensuring its customers were enjoying a nice meal and having a great time. It was a mistake that eventually led to his failure. Never think that customer quantity ever outweighs the quality of the customer experience. Making a memorable experience is the essence of great customer service.
If we dig a little deeper, we find another mistake made by the restaurant owner: believing that the customer experience was over when the meal was over. The meal was prepared, it was served and we consumed it. Then, at some point during the end of that process, we became an obstacle to his next sale. He failed to comprehend that the sale is not over when the meal is over, and that everything that occurs right up to the moment when a customer drives away from his parking lot will have an influence on whether that customer will return in the future.
The lesson for us is simple: Never lose sight of the importance of creating a customer. Establish a culture in your company that cultivates long-term relationships. Build a process that always strives for world-class customer service during the entire customer experience—and especially at car delivery.
Never think that when the technician completes the repair, your job is done. The customer experience continues right up until the time the customer is picking up their car. The time you spend with the customer after the repair is done is as important as making the sale.
Value each customer. Work on those relationships. Don’t worry about short term profit gain. Remember: building long-term relationships, builds long-term profit.
By the way, that restaurant has recently opened up again. My friends and I went there for dinner last Friday night. We noticed that the new owner was walking around greeting everyone. He eventually made his way to our table, introduced himself and said, “Can I get anyone anything? It’s great to see you here tonight and hope to see you again soon. Thank you.”
Now, you tell me: Do you think we’ll go back?
This story was originally published by Joe Marconi in Ratchet+Wrench on February 1st, 2019
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