Credit and debit card start up charge

[Jason Studer]

I am finally going to install Cryptopay.

I am currently $2 for 4 Min. for cash.

I am using a count down timer and not going to change.

I am thinking about making C.C. users start times to be 6-8 min., I am also planning on adding a 12% C.C. fee. In Minnesota we can now do this as of January 2015

example
$3.36 for 6 Min.
$4.48 for 8 Min.
$1.12 for 2 Min. for extra time by pushing button on C.C. swiper


My question is. Should I start out forcing the C.C. users to start at 6 or 8 minutes?


Thanks for your input.
Jason

 

[bmassie.mrklean]

I am finally going to install Cryptopay.

I am currently $2 for 4 Min. for cash.

I am using a count down timer and not going to change.

I am thinking about making C.C. users start times to be 6-8 min., I am also planning on adding a 12% C.C. fee. In Minnesota we can now do this as of January 2015

example
$3.36 for 6 Min.
$4.48 for 8 Min.
$1.12 for 2 Min. for extra time by pushing button on C.C. swiper


My question is. Should I start out forcing the C.C. users to start at 6 or 8 minutes?


Thanks for your input.
Jason

I would seriously consider doing a count-up time as this has been proven to be especially effective. You can set your start/minimum the same if you would like but I would have an automatic stop after ten minutes or so to prevent the timer from running up charges if the customer forgets to press the stop button manually. This is a great way to keep customers from rushing through the wash and as long as you have the "Remember to press the stop button!" signage posted you will make whatever they don't use as extra revenue without incurred cost of soaps, etc. This method usually encourages the customer to take their time as opposed to rushing around trying to finish up as that low time buzzer starts going off.

Just a suggestion for you!
-Brett

 

[Jason Studer]

I am not and will not go with count up timers. There are to many stupid people that will forget to push the button and claim they only used $2 and then have to refund money. No thanks!!!

 

[chaz]

It seems like you already know what you are going to do, so why ask?

For everyone else, here's what I do. $3 to start first 4 minutes cash or credit. Count up on Credit/ debit, yes there's a bit of a learning curve. Biggest issue is the customer understanding the pre-auth of in my case $15 that drops to the amount actually used when the transaction posts. In 8 years I've had only a small % that forget to hit stop. They call, I adjust to what they say they used, no one has ever said the minimum amount.

I would never think of charging a CC fee (especially 12%!!!!!). It's all about making it easy for my customers to spend more money at my wash. Yes I pay a C/C fee, but no where near 12%, and more C/C means less cash to handle.

Good luck.

 

[Randy]

I’d raise the cash price to $2.50 for 4 minutes and make the Credit card price $5.25 for 8 minutes. At the same time I’d also raise my vacuum prices to $1.25 for 3.5 minutes, if your not already around hat price. The car wash on the other end of town from me there vac's are still at .75 for 5 minutes, I'm at $1.25 for 3.5 minutes and do considerably more vac business than they do, I don't think it's about price.

 

[cantbreak80]

I went to $1/min last December.

With Count Down timers.
$3.00 to start cash
$5.00 to start credit
Additional time is $1 per "button push".

Vacs are $1.00/3 min.

Total revenue is up 37.8% over same YTD.
62% of revenue is credit! It just shows up in my bank account. Wheeee!

 

[slash007]

Just fyi, out of the many people that max out the $15 charge that I set, I only get one call every 3-4 months. So not going count up for that reason is just leaving money on the table. I charge $3 to start for cc, $2 for cash.

 

[Earl Weiss]

I am not and will not go with count up timers. There are to many stupid people that will forget to push the button and claim they only used $2 and then have to refund money. No thanks!!!

I agree that people can be surprisingly dense.

BUT in this case I think your conclusion is incorrect.

I don't know if I get 2 of these a year, and my CC revenue runs about $2000 / month.

Also, you can try count up and change back if it really is an issue. I am count down for money.

I am same price / start for $ and CC with $10.00 max. I am in the Midwest.

 

[JMMUSTANG]

Last month I changed my max out charge to $8.41.
Recently I have had several customers that called me after they washed (twice while they were still at the wash-they actually got online on their phone to check) saying the CC showed a $10 charge but they used less. They actually got online on their phone to check. I explained to them about the max out charge and that in 24-48 hrs. they would be charged the exact amount they used to wash the car.
Also for some reason this summer I had more than normal amount of people that forgot to press the stop button that called me.
So I went back a year and checked the times that I had $10 charges.
Then I checked how many customers reused the same card after the timeout and how much more dollars they used.
The average total dollars used with those customers (probably landscapers, mudders) was $12.86 for the last year.
For whatever reason since changing the dollar max out to $8.41 those customers are averaging $15.44. Go figure.
My reasoning for changing the max out time was hoping that the customer wouldn't notice the difference, thought they HAD used that amount, or figured it was not that much of a difference to be upset about.
This month I have not had one call about CC max time out charges.

 

[PaulLovesJamie]

I am also planning on adding a 12% C.C. fee. In Minnesota we can now do this as of January 2015

I'm fairly sure that this is a common misconception - I think that nationally you can NOT add a cc fee. Please google it a bit, there's a lot of semantic wording and legalese involved, but my conclusion after doing a bit of research is that you cant really do it. Ways around it, yes - e.g. you can discount for cash.

I'd be happy to be proven wrong, because I'd like to add a cc fee too. But my conclusion was that its not really workable.

 

[PaulLovesJamie]

My question is. Should I start out forcing the C.C. users to start at 6 or 8 minutes?

My startup price (aka minimum purchase) is $3 for cash or tokens, $5 for cc.
And FYI, I'm one of the dense operators who uses count down

 

[chaz]

Do you guys like paying more for credit/debit when you make purchases? I think C/C fees are just part of doing business. I want to make it easy for folks to spend money at my wash. Less cash to handle also saves me some time. I suggest you adjust your prices as needed so you are ok with same price for both.

 

[pgrzes]

I have had my credit cards for about a year. I highly recommend going count up! Yes a lot of people max out the $12 charge, not a single call for a refund that they wont get!!! I have clear signs that show what has to be done, ill give a couple tokens if someone asks. As far as charging why would you?? I dont have to count coins or dollars!! I dont have to take $$$ to the bank, And its probably $$$ into my bank account that I would not have gotten anyway!! My cash business hasnt dropped since adding Cryptopay, and now I look at it as about $2000 a month in extra $$ that I dont have to bother with. Another thing you will see most CC users will use every function in the bay, so make sure you have lots of them!!! I just added bay blowers, they go great with credit cards. Well anyway my advice, so take it for what you paid for it!!!! wash up all!!

 

[slash007]

On another note, I do get 3-4 calls a month from people that check their bank statement instantly and ask why they were charged $10 I explain it's a pre-auth and they are fine. I have my vacs set at $2.50 per swipe, can't add time. Swipe again if you need more time. No complaints. I do have combo vacs and my shampoo is $2.50 to start, so that is where I got that start price from.

 

[Stuart]

There are to many stupid people that will forget to push the button and claim they only used $2 and then have to refund money. No thanks!!!

You will also have the customer who calls and says he didn't press the button for more time so you will be refunding the $1 & $2. Lately I have had a rash of people contact me for refunds--- falsely. One guy said his cc stmt showed a $30 charge for a $3 use. I said show me the stmt and I have not heard back from him.

For 5 years at both locations I have been on count up with a $3 minimum on cc and $1 min for cash. Those who choose not to read the sign that is right next to the coin box stating exactly how and what to do on cash or credit purchases do not get a refund if they do not press stop. Max is $14.75. We do have enough regular customers who use this full amount and more when they wash.

I have the belief that the customer with count up will be more satisfied with their wash, they are not racing the clock even though on count down they can press for more time. The same argument can go for cash, they can still put more money in---they don't. cash or credit, customers will race the clock if it is count down.

 

[Jason Studer]

Sorry for slow reply. I was off the grid this weekend hunting.

Thanks for all the input. Again I love everyone opinions, positive or negative.

The law on Credit, Debit card charges for the state of Minnesota is that I can charge not more but less then my fees, every state is different so read your laws.

There are only a few self serve car washes that except C.C. anywhere near me.

A lot of the big retailers are starting to charge this fee, so why not me?

 

[chaz]

Just curious..... What big retailers are charging a C/C fee of any kind, let alone TWELVE %? I love getting travel points, and I use my C/C for purchases over $2.99....I've never been charged a fee or up charge.

 

[PaulLovesJamie]

every state is different so read your laws.

I did, and although IANAL I'm fairly certain you cant do it. Your contract with visa for example is not controlled by state law... I think you'll be in violation of it. I agree that this is changing, and yes I'm aware of the recent class action suits. I am also aware that some are charging it anyway, but that doesnt make it legal.
I hope hunting was good - its lousy here in SE PA, nobody I know is seeing anything yet.

 

[Earl Weiss]

Not sure hown the law works but I do know many entities charge a "Convenience Fee" for CC or post cash and credit prices.

If you want an example in how to charge look at the Illinois Secretary of State. If you choose to file your annual corporate report on line (as opposed to doing the paper form and sending a check) and pay the $100 fee with a CC the convenience charge is $50.00, and just so you know it's not a typo that amount is Fifty Dollars.

 

[chaz]

Yes, but not much choice if you want to pay taxes. Plenty of choices to avoid fees for Carwash, grocery, and other retail.

Jason says big retailers (I guess in his area) are charging a C/C fee!?