10 Myths About The Charge Card On File System

Before we delve into it, I want you to consider one thing: How much would your life change if 99% of your monthly revenue was in your account within a week of sending invoices?

When I reflect on how I used to collect payments before requiring a charge card on file, it was a chaotic period. I felt like a debt collector, constantly chasing people down for money, not because they couldn't afford it, but simply because they forgot. Sometimes people would leave a check tucked in the door, or cash by the grill. We all know how that goes, but it's neither efficient nor effective. You waste valuable time running around trying to collect the money owed to you. All of this can be avoided with a charge card on file. If you're hesitant or need more reasons why you should have a charge card on file, let me dispel 10 myths about why it's not a good idea:

People Won't Do It/You Will Lose Customers
When I switched to charge cards on file, I had 120 customers. Out of those, only 2 didn't switch over. One customer, who I was hoping to lose anyway, refused to provide a credit card, and that was fine. The other customer was a 92-year-old man who always paid on time, and I didn't have the heart to make him figure out the technology on his own, so he continued to pay via check. Overall, I only lost one customer.

"I'm Too Young"
Now, let me preface this by saying I'm not sure about the legalities, so be sure to check if there's an age requirement to accept credit cards through your CRM. However, accepting credit cards makes your business appear professional, regardless of your age. Many people start their lawn care business in high school or right after, so I understand feeling "too young" for certain things. However, if having a card on file becomes a policy in your business, communicate it as such. Presenting too many payment options may make you appear disorganized and desperate, whereas having a policy of a charge card on file simplifies things for everyone. If you communicate the change with confidence, your customers will feel confident paying you.

It Takes Too Much Time and Effort to Explain a New System to Customers
Think of it this way: the time you invest on the front end will save you a significant amount of time on the back end. Winter provides an opportunity to organize your business. When I sent out my Lawn Agreement Forms, I included a half sheet of paper notifying customers about the change in our policy to keep a charge card on file. This gave people time and notice of how our policy was changing, allowing them to find another company if they didn't agree with it.

Establishing Trust
Building rapport and instilling confidence in your work and business practices takes time. If you've been providing quality work and excellent customer service, and you present your business professionally, you shouldn't encounter any significant problems.

"We've Always Done It This Way"
As a business owner, you must be willing to adapt as technology and the world around us improve. Just because you've done something a certain way doesn't mean it can't change. You need to be open-minded and receptive to new opportunities.

“I Prefer Cash or Check”
Accepting cash doesn't benefit your business. The more legitimate your business appears, the better off you'll be. That's why having a bookkeeper and a good CPA is crucial, as growing your business and generating revenue is key to your success.

“I Will Have to Wait for My Money Because of the 5-7 Days of Processing”
Consider this: would you rather receive half of your money up front or wait a week and receive 99% of what is owed to you? Without a doubt, waiting for that 99% is preferable. If you're thinking, "But Brian, I can't wait; I need the cash to pay bills," then you may have some cash flow issues that require closer examination.

What About Prepaying?
In our case, we bill all our clients at the end of the month because unforeseen circumstances or weather conditions may impact the number of mows required for a property in a given month. We only charge the credit card at the end of the month, after the work has been completed.

Credit Card Fees
I understand that credit card fees aren't popular, but they're a fact of life. If the fees eat into your profit, adjust your prices accordingly to ensure fairness to the customer while covering the costs associated with completing the work.

People Want Their Tips
You shouldn't rely on tips to pay your bills. If you are, it's time to reassess your business. Customers can still tip you via credit card; it just might not be in cash, as you were accustomed to. Remember, tips are additional and should not be relied upon to cover your expenses.

Keeping a charge card on file creates an efficient way for customers to pay you, removing the emotional aspect and turning it into a simple transaction. This will streamline your business and save you time in the long run. Even if I didn't convince you, I hope you are able to take away a few points as to why having charge cards on file might be the right move for your business.