Forum Discussion

Squaredup's avatar
Squaredup
Contributor 2
2 months ago

Credit Card processing will soon be dead and it cant come soon enough.

As I learned more and more about businesses and how the market place works I was inevitable exposed to Credit Card processing. Since most of you were also exposed to CC processing services in one way or another I found It important to bring it up on this platform. How many of you have been negatively affected high interest that only keeps climbing? How about the dreaded phantom delays CC processing just magically creates for you? Or my personal favorite, when 20% of your duly owed compensation is withheld from you for 120 days because that's what the CC company has deemed is in your best interest.. To me, this system is awful and over due for a rude awakening. When capabilities such as Zelle, Checks, ACH transfers, and future technologies brought on by AI become more available; those little pieces of burdensome plastics will become obsolete. These THIRD PARTY credit card companies have taken advantage of virtually everyone, and I for one cannot wait until they are completely gone for good!

processing payments
  • bedellmgmt's avatar
    bedellmgmt
    Jobber Ambassador
    2 months ago

    Fair points but for the moment it's just the cost of doing business that gets passed on to our clients. Innovation will make everything obsolete inevitably one day - but as history shows, someone will always want a cut of the action for being the middle man!

  • JanineChambers's avatar
    JanineChambers
    Contributor 3
    29 days ago

    It comes down to spending money for convenience and time savings or spending time and sacrificing convenience to save money.  I would rather spend money to not have to chase payments.  I use Stripe and Jobber Payments and have never had to wait aside from the first couple payments.  

    There are a lot of third party processors out there offering lower rates by maybe a penny on the dollar but they make more work for the business and the customers they serve.  I have heard a lot of horror stories about dragged out payments. 

    I agree that it is nice that there are alternative payment methods but they rely more on the customer to make the payment than a credit card.  These payment options may appear cheaper because they lower that single overhead cost in your chart of accounts but they usually cost you more to accept in the long run.  If you tallied costs of admin following up on payments, monitoring accounts for past due invoices, carrying expenses while waiting for payment, bounced checks, bank processing fees, and the bookkeeping/accounting costs to reconcile your payments it would likely be much higher.