Small Firm Exchange

I've recently started up a single-architect practice and I have a new client for a small residential job who is expressing an emphatic wish to pay my retainer by credit card. I hadn't thought it would be necessary to accept credit cards, and it sounds like a waste of money. Is this usual? Will I lose business if I don't accept them? Should I worry about a client who insists on using them?
Thanks for your feedback.

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Jessica Burgard AIA
Principal
Adaptive Architectural Design
College Park MD
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Jessica,

I have had my firm for 25 years and never had anyone ask to pay by credit card. I would guess that this is just one odd request and not worth setting up the process of taking cards. I looked into accepting cards and the amount that I was allowed to accept was less than a typical bill to a client.

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Linna Frederick FAIA
Principal
Frederick & Frederick Architects
Beaufort SC
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To put this in perspective, some colleges allow you to pay tuition by credit card, but charge a processing fee to do so, which typically equals the benefit you may get for using the card in the first place.

From the client's perspective, they see the potential to earn thousands of reward points from their credit card company and maybe even pay for a few airline tickets to go away on vacation when the project was over. I looked into a merchant account. It was prohibitively expensive unless you did it all of the time.  Typically there is a set up charge, an annual charge, and the charge per transaction. I think you'd be better off buying them the airline tickets, if that's the case.

There may come a day when this becomes more common for professional fees. But until that time, you'd have to pass that cost along or eat the difference in order to stay competitive. Some contractors are already doing this, by the way. Of course, the best clients don't base their decision to engage you based on price alone.

One more thing to consider (I did.) Maybe they just want the convenience of paying by card. And you cannot overlook the ability to automatically charge the account when you hit a billing milestone, rather than send an invoice and wait and wait and wait for payment.

In the end, I determined that it just wasn't worth it for me right now; but maybe one day I would re-visit this and set up an account, marketing the ease of payment as a benefit while gaining a competitive advantage over my competition.


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David Del Vecchio AIA
Architect
David Del Vecchio, Architect, LLC
Cranford NJ
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Original Message:
Sent: 07-28-2012 17:12
From: Linna Frederick
Subject: forms payment

Jessica,

I have had my firm for 25 years and never had anyone ask to pay by credit card. I would guess that this is just one odd request and not worth setting up the process of taking cards. I looked into accepting cards and the amount that I was allowed to accept was less than a typical bill to a client.

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Linna Frederick FAIA
Principal
Frederick & Frederick Architects
Beaufort SC
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I, too, have a one-man office. I had a client once ask to pay with a credit card, so I signed up for a PayPal account that accepts credit cards. The client paid the additional fee in addition to my invoice amount. It was painless. As one who pays for most of my expenses with a credit card (love them airline miles), I can see the appeal of using a credit card. Regards, Patrick ------------------------------------------- Patrick Marr AIA Patrick Marr, PE, AIA Santa Barbara CA -------------------------------------------
Original Message: Sent: 07-28-2012 18:41 From: David Del Vecchio Subject: forms payment To put this in perspective, some colleges allow you to pay tuition by credit card, but charge a processing fee to do so, which typically equals the benefit you may get for using the card in the first place. From the client's perspective, they see the potential to earn thousands of reward points from their credit card company and maybe even pay for a few airline tickets to go away on vacation when the project was over. I looked into a merchant account. It was prohibitively expensive unless you did it all of the time. Typically there is a set up charge, an annual charge, and the charge per transaction. I think you'd be better off buying them the airline tickets, if that's the case. There may come a day when this becomes more common for professional fees. But until that time, you'd have to pass that cost along or eat the difference in order to stay competitive. Some contractors are already doing this, by the way. Of course, the best clients don't base their decision to engage you based on price alone. One more thing to consider (I did.) Maybe they just want the convenience of paying by card. And you cannot overlook the ability to automatically charge the account when you hit a billing milestone, rather than send an invoice and wait and wait and wait for payment. In the end, I determined that it just wasn't worth it for me right now; but maybe one day I would re-visit this and set up an account, marketing the ease of payment as a benefit while gaining a competitive advantage over my competition. ------------------------------------------- David Del Vecchio AIA Architect David Del Vecchio, Architect, LLC Cranford NJ -------------------------------------------
Original Message: Sent: 07-28-2012 17:12 From: Linna Frederick Subject: forms payment Jessica, I have had my firm for 25 years and never had anyone ask to pay by credit card. I would guess that this is just one odd request and not worth setting up the process of taking cards. I looked into accepting cards and the amount that I was allowed to accept was less than a typical bill to a client. ------------------------------------------- Linna Frederick FAIA Principal Frederick & Frederick Architects Beaufort SC -------------------------------------------
Original Message: Sent: 07-27-2012 18:26 From: Jessica Burgard Subject: forms payment I've recently started up a single-architect practice and I have a new client for a small residential job who is expressing an emphatic wish to pay my retainer by credit card. I hadn't thought it would be necessary to accept credit cards, and it sounds like a waste of money. Is this usual? Will I lose business if I don't accept them? Should I worry about a client who insists on using them? Thanks for your feedback. ------------------------------------------- Jessica Burgard AIA Principal Adaptive Architectural Design College Park MD -------------------------------------------

Hello Jessica,
You may want to look into PayPal.  I have Not yet done this, but am considering it.  Any costs associated with processing each fee payment would have to be passed along to the client and they should be made aware of this, if you decide to offer this convenience.  Another option for this particular client of yours is to offer them a modest discount for prompt payment, like within 5 days by check.  Maybe that will appeal to their sense of thriftiness. 

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Rand Soellner AIA
Architect/Owner/Principal
Rand Soellner Architect
Cashiers NC
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I just want to thank everybody that responded to my question. I am fortunate to have you all as a resource as I learn how to turn practice into business.

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Jessica Burgard AIA
Principal
Adaptive Architectural Design
College Park MD
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Original Message:
Sent: 07-30-2012 08:08
From: Rand Soellner
Subject: forms payment

Hello Jessica,
You may want to look into PayPal.  I have Not yet done this, but am considering it.  Any costs associated with processing each fee payment would have to be passed along to the client and they should be made aware of this, if you decide to offer this convenience.  Another option for this particular client of yours is to offer them a modest discount for prompt payment, like within 5 days by check.  Maybe that will appeal to their sense of thriftiness. 

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Rand Soellner AIA
Architect/Owner/Principal
Rand Soellner Architect
Cashiers NC
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It sounds like Square is perfect for your needs, it is free to sign up, no monthly fees, I think it is a 2.75% fee, you get a little card reader that works on your phone or ipad, for free.

https://squareup.com/



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James Zack AIA
Architect / Principal
Zack/de Vito Architecture + Construction
San Francisco CA
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Original Message:
Sent: 07-31-2012 15:34
From: Jessica Burgard
Subject: forms payment

I just want to thank everybody that responded to my question. I am fortunate to have you all as a resource as I learn how to turn practice into business.

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Jessica Burgard AIA
Principal
Adaptive Architectural Design
College Park MD
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I agree, James - I use Square for my little art business, and it's great.  I do a few art shows a year, pay the fee only when I make sales, and I don't have to deal with a monthly fee.  I never thought of using it for architectural fees, but I think it would work.  Just check into any maximum withdrawal/transfer limits first, since architects' fees are a lot higher than art sales!  I haven't used mine in a while and I don't remember exactly what the limits are.  A PayPal Merchant account might also work well, but again check into any limits on withdrawals. 

Best of luck with your new practice, Jessica!

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Roxanne Button AIA
Architect
Architectural Resources
Buffalo NY
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Original Message:
Sent: 08-01-2012 13:05
From: James Zack
Subject: forms payment

It sounds like Square is perfect for your needs, it is free to sign up, no monthly fees, I think it is a 2.75% fee, you get a little card reader that works on your phone or ipad, for free.

https://squareup.com/



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James Zack AIA
Architect / Principal
Zack/de Vito Architecture + Construction
San Francisco CA
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Original Message:
Sent: 07-31-2012 15:34
From: Jessica Burgard
Subject: forms payment

I just want to thank everybody that responded to my question. I am fortunate to have you all as a resource as I learn how to turn practice into business.

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Jessica Burgard AIA
Principal
Adaptive Architectural Design
College Park MD
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I started accepting credit cards three years ago. And even then it's only once and awhile. Mainly from homeowners. I use Quickbooks online for all my financials. They (Intuit the makers of quickbooks) offered to set me up with a merchant account for free and without the customary monthly fees, annual fee, per transaction fees and whatnot that most of the other merchant account places wanted to charge. Since my invoicing is done through email and online it made sense to allow credit card payments when paying online. I'm charged the a customary 2.7% per transaction for the service and that's the only fee I pay. Despite what other have said, it is illegal to charge a surcharge for paying with by credit card. That is a violation of the merchant member account agreement with the member cards such as Master Card, VISA, and Discover. It is also a violation of the same agreement to say you have to spend a certain minimum amount in order to use the credit. A number of donut shops here locally have signs by the register that say something like '$3.00 minimum purchase to use credit cards'. If that was reported to the card providers that merchant account would be closed. Having said all that it is NOT illegal or a violation of the agreement to offer a discount for paying by cash. Gas stations do this along the interstate.

Some merchant account providers charge something like $0.25 per transaction plus the percentage but that's getting rarer.

One cool thing was I sent a credit card reader that plugs into the headphone jack on my smartphone. One common one is 'Square' that is sold locally at Staples. But if I'm with a client and they want to just pay right then which has happened more often than I thought it would, I simply plug that guy in, pull up the invoice in the app, swipe, they sign via their finger on the screen and it instantly pays me and emails them a receipt.

The wonders of technology never cease.

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Gordon McKenzie Assoc. AIA
Tartan CAD Services
Lewisville TX
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Over the 14 years that I have had my own practice, I have only had a couple of request to by my services via a credit card.  What I have discovered in those instances was that there was more to the client's situation than them just wanting to pay by credit card for convenience or even points. They just did not have the money to pay for the services. One my client's just stiffed me and went bankrupt and the other two took forever to pay for their services. Also, if the client is that motivated to use their credit card, most credit card companies will issue draft checks which they can write checks against their account. You get paid without the hassel of setting up an account and they get to use their card. End the end just be careful with these requests, I have seen them as a tell tale sign that the client is attempting to accomplish more than what their resources will allow.

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Rob Walker AIA
Rob Walker Architects, LLC
Birmingham AL
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I would look into Square.com (https://squareup.com/pricing). I haven't used it a lot, but it has helped me get a few late payments due to Client cash flow issues. There is no monthly fee or cost to sign up. Each transaction costs 2.75% which is worth it, to me, to keep the cash flowing. The little card swiper works on most smart phone and is  easy to keep with you at all times.

And if you don't end up using it, you haven't spent anything,
Paul

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Paul Adams AIA
Principal
Earth And Sky Architecture
Denver CO
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A company i worked for in the past accepted credit card payments, but there were high costs and fees associated with a merchant account with the bank.

You could use Paypal, which also charges a percentage of the transaction amount (but will allow them to pay you with a credit card, and then the funds are available for you immediately once Paypal has verified them). You can issue an invoice through Paypal for the amount, along with a service charge, if they really are intent on paying you with a credit card.

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Betsy Nickless
Mark Scheurer Architect, Inc.
SDA Orange County Chapter
Newport Beach CA
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HI, We set up CHASE quickpay with our bank. A free service comparable to a credit card. You can aslo use Square Up, its a flat 2.75% rate. Thanks ------------------------------------------- Jean Dufresne AIA Architect Space Architects & Planners Chicago IL -------------------------------------------
Original Message: Sent: 07-27-2012 18:26 From: Jessica Burgard Subject: forms payment I've recently started up a single-architect practice and I have a new client for a small residential job who is expressing an emphatic wish to pay my retainer by credit card. I hadn't thought it would be necessary to accept credit cards, and it sounds like a waste of money. Is this usual? Will I lose business if I don't accept them? Should I worry about a client who insists on using them? Thanks for your feedback. ------------------------------------------- Jessica Burgard AIA Principal Adaptive Architectural Design College Park MD -------------------------------------------