Credit card processing fees can easily cost painting businesses thousands of dollars per year in profit. This is especially true if your business does mostly residential work for homeowners as opposed to commercial work or new construction. Ensuring you are on a price friendly plan for your business is important to maintain a healthy profit margin. In this article, I will compare most popular credit card processing options.
The first thing to determine when considering what credit card processor to use is how much in credit card sales, on average, you conduct on a given month. Your volume of credit card revenue, in some cases, impacts the applicable credit card transaction cost and the monthly service payment to your credit card processor.
The second item to consider is your average credit card sale. You can determine your average credit card sale by dividing total credit card revenue by the number credit card transactions. Credit card processors often charge a fee per transaction.
Square vs Stripe vs Quickbooks Payments vs Payline Data
Two key items to note. First, it’s always cheaper to accept Automated Clearing House (ACH) payments over credit or debit cards. However with homeowners often not having the cash in the bank to pay for large expenses, homeowners often need credit cards to settle the payment. Second, it is that it is almost always cheaper to swipe credit cards rather than key-in credit card information online. With this in mind, I’m going to assume your business uses a mobile credit card reader to swipe credit cards.
Here are the basic swipe fees for four popular credit card processors:
Square - 2.75% per swipe
Stripe - 2.9% plus $0.30 per swipe. ACH is 0.80% with a $5.00 cap.
Quickbooks Payments - $19.95 a month, 1.6% plus $0.25 per swipe. ACH is $0.40 per transaction.
Payline Data - For companies with less than $5,000 per month, Interchange + 0.5%, $0.15 per swipe, $0 per month. For companies with more than $5,000 per month, Interchange + 0.2%, $0.10 per swipe, $15 per month. Interchange-plus is basically the wholesale fee Payline Data pays. For debit cards it is 0.5% fee, for regular credit cards it is a 1.5% fee, and for reward credit cards, it is a 2% fee.
Lower-Priced Jobs - Swipe Fees
If your business has smaller-sized jobs and credit card revenue below $3000 per month, Payline Data is a good option. This is especially true when your customers use their debit card instead of their credit card. Payline Data has different price points depending on the type of card (debit card, regular credit card, rewards credit card). One thing to note, you must purchase a mobile credit card reader ($99) with Payline Data. Square and Quickbooks Payments provide a reader for free.
Higher-Priced Jobs - Swipe Fees
If your business has larger jobs with revenue above $5,000 per month, Quickbooks Payments will likely be the best option. Although Payline Data has Quickbooks Payments beat on debit card transactions, Quickbooks Payments clients can use ACH transactions for customers who have cash available in the bank.
Bottom Line: Ensure you take a close look at your credit card processing fees. You can save hundreds of dollars in profit a year by ensuring you have the best credit card processing plan for your business.