For those of you that accept PayPal...do you allow wedding payments this way too? Do you charge anything to help cover the finance charges? I think it is about 3%. I don't mind so much for smaller cakes, but I hate losing $20-25 dollars on weddings. Is this discrimination?
You know, I'm glad you've asked this question. It's something I've wrestled with lately too. I was thinking about increasing my price to include this as part of the cost, and then offer a 3% 'cash' discount to those who pay with cash or check.
I'm interested to see what others have to say.
I use Paypal when i have to, but i try not to because of that very reason. I had to use it for a $1500 transaction at Christmas and boy was I ticked to remember the charge after the fact!
The only reason i have not added the surcharge is that some big businesses only want to pay by credit card, or over the internet I only want to take credit card. Since I do not want to pay a monthly fee I have just ignored the surcharge.
I think that adding a surcharge might turn some people off. So I think instead raising prices, or including it in the price somehow would be less obvious.
Then agian it might be nice just to get the cash. i don't however want people to start sending me checks for internet orders....that is too risky, plus it has to be so far in advance to make sure they actually have the money for which they are writing the check.
Thanks
Julia
It's part of the cost of running a business! You have expenses when running a business! 
If you accept credit cards, it's my understanding that it's part of your agreement with the credit card companies that you can't charge the customer more to cover the fees.
I don't know of any such agreement with PayPal.
So probably raising your prices and giving a cash discount would be the best way to recoup any fees.
For items you sell on ebay, you are not permitted to add a charge to cover paypal expenses, just like you are not allowed to charge a fee to credit card customers to cover the credit card fees. I dont' know if this applies to non-ebay items only (ebay policy) or to all paypal transactions (paypal policy).
A friend who works in banking for 25 years told me it was strange that you are not allowed to charge a fee to someone using a credit card but it is ok to give a cash-discount. Maybe you want to set your pricing that way.
But I agree with the above post. It's the cost of doing business. But when we made the decision to start taking credit cards it was with the thought that I'd rather have 97% of something than 100% of nothing.
I was meeting a bride at a wedding planner's office. All billings/invoicing ws going to be run thru the wedding planner (bride pays planner, planner pays me .... I'm NEVER doing that again!). Bride asked if planner took check or American Express. Planner said, "I'd rather you do a check because of the fee the credit card company charges you."
The next week, I got a call from American Express asking if I had refused to accept their card. Well, my mind went blank and I told them I couldn't remember anyone even offering me an amerex payment! Later that day I figured out what happened and I called American Express back to tell them "It wasn't me! It wasn't me!" and told them the story of the WEDDING PLANNER not taking the card!
The bride had called Amer Exp and turned "me" in for not accepting her card! THIS is why I will not bill thru a third party again.
So not only is it not legal to charge extra to a credit card customer but if they turn you in for it or for refusing to take a card when you're set up to take the card, then it seems the credit card company can cut you off.
You mean not offer paypal option or not offer credit cards? If you are doing any volume business at all, I'd think about it if you mean credit cards. Studies show that people will spend 18% when buying with a credit card. I find people are more likely to leave my crew a tip after a wedding when they pay by credit card. If taking orders and deposits by phone, it's easier to do via credit card.
Assume a 3% surcharge on credit card transactions (and mine are way under 3%), then on a $2000 reception, it will cost me $60 to take a credit card. Would I rather have $1940 or would I rather lose the booking to someone who takes credit cards and get zero?
I know it depends on your volum and your style of business .... just some thoughts to think about. 
Wow what an interesting thread! I had no idea it was not legal to take a card if you were setup. I guess the credit card companies paid big money to the lobbyist to get that passed! How come some signs say they will accept Visa and mastercard and not Amex? maybe it is because they have to pay a fee as to what they accept. i remember we cancelled our amex card b/c so many places said they would not accept. Hmmm...
Thanks
Julia
When I signed up to accept cards, Visa/MC is a package deal. I could choose which ones to accept. I had thought AmEx had a really high fee (which is what I heard was the reason so many merchants didn't take it) but it's under 3% for me. Our thinking was "if we're going to take one, we might as well take them all." It costs us nothing until a customer actually uses their card, so being signed up for Discover Card but no one buying with a Discover Card is no skin off of our nose.
I had no idea it was not legal to take a card if you were setup. I guess the credit card companies paid big money to the lobbyist to get that passed!
To the best of my understanding, it's not illegal -- they can't come and arrest you and throw you in jail -- it's just a violation of your service agreement and they can take away your right to accept credit cards and slap you with fees (again, per your agreement, which is about 10,000 words long and basically says they're liable for nothing and you're liable for everything). Credit card companies make so much money it actually scares me a little.
When I signed up with my credit processing company I was signed up to take visa, mc, discover, and amex. I only accept amex on corporate orders....if a bride hands me an amex card I ask for another form of payment. It's my shop, my payment and if I choose to not accept amex then that is my choice. I called my processing company about 5 minutes ago and confirmed this. I do not have a clause in my agreement preventing me from accepting amex from "certain" customers. This is just the way I do business. Amex charges a ridiculous fee (nearly double what visa, mc, discover do) and I am not paid as quickly. They are also rude when there are cs issues. If I had my way I wouldn't deal with them at all...usually I bill through paypal with better luck...but sometimes a corporate order doesn't use paypal and they only have amex to pay with. So I suck it up and give amex my hard earned money!
..... Credit card companies make so much money it actually scares me a little.
Which is why we NEVER use credit cards anymore for personal (or business) use. (But I will happily take OTHER'S people's plastic as payment!) 
I'll reply to this more as a consumer than as a cake supplier.
I rarely write checks anymore. I'm actually uncomfortable writing "one- time" checks to people --especially "private individuals--that I don't know very well because I don't like them having my account info (all of it's basically on the check). It used to be that checks were safer than credit cards, but the fact is that a paper check in the hands of the wrong person is much more dangerous. At least with a credit card, you have almost immediate recourse with the issuing company. Banks are much harder to deal with---they penalize the customer first and can be very slow to correct/investigate problems. With my credit card, I pretty much only have to worry about $50. With my bank account, I have to worry about a lot more.
I'm NOT implying that cake decorators are bad guys, but in some instances, you may be dealing with an individual (and their family members), not a business, so there may be no insurance, assets, storefront, etc.
I'd rather use credit, but if that isn't a choice then I'll pay cash (with receipts, or no deal).
Rae
..... Credit card companies make so much money it actually scares me a little.
Which is why we NEVER use credit cards anymore for personal (or business) use. (But I will happily take OTHER'S people's plastic as payment!)
I will take a moment to share a quotation from Thomas Jefferson:
I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs.
Thomas Jefferson, Letter to the Secretary of the Treasury Albert Gallatin (1802)
3rd president of US (1743 - 1826)
Sorry to be so dramatic. 
KellyM ..... Here! Here! Don't even get me started on how banks have changed since the de-regulation of the 80's and the focus is "sales" instead of "service". They are starting to rank right down there with used car salesmen!
To get back on topic: Some checks take 7 days for the money to hit my account. Credit card money is in there in 1-2 days. Better money access for me, which is anothe reason why the fees are not an issue for me.
If I had my way I wouldn't deal with them at all...usually I bill through paypal with better luck...but sometimes a corporate order doesn't use paypal and they only have amex to pay with. So I suck it up and give amex my hard earned money!
Can't they use their AmEx card on PayPal?
If I had my way I wouldn't deal with them at all...usually I bill through paypal with better luck...but sometimes a corporate order doesn't use paypal and they only have amex to pay with. So I suck it up and give amex my hard earned money!
Can't they use their AmEx card on PayPal?
Yes, they can use their amex on paypal. I guess I didn't explain myself well. I absolutely hate dealing with amex so when I get a corporate order I will invoice them through paypal so they can use their corporate card if amex is all they have. If their company won't let them pay with paypal I will run amex through my machine if it's the last resort.
If you accept credit cards, it's my understanding that it's part of your agreement with the credit card companies that you can't charge the customer more to cover the fees.
This is true for us little people, but it always ticks me off that the state and goverment charges a fee if you want to use your credit card as payment for your taxes. 
I like to use my credit cards for purchases because I get a lot of points and can use them for travel or gift cards.
I quit taking Amex because they were twice the % of Visa/MC and wanted a $5 monthly fee on top of that.
This is true for us little people, but it always ticks me off that the state and goverment charges a fee if you want to use your credit card as payment for your taxes. ....
DIdn't you know? Almost every time the govt passes a law for everyone in the USA, they exempt themselves from following that law.
Yes...you can most certainly have a notation in your cake contract that states orders over $XX need to be paid with a check or cash only.
I had a CEO of a very large corporation call me (I did AR for telephone switching device manufacturer) and he wanted to pay his invoice for ONE MILLION DOLLARS with his Am-Ex!!! 
After picking myself up off the floor (we had a credit card machine for $50 training classes we offered.....since our equipment started at around $500k we'd never had anyone try to pay with plastic) I called Am-Ex who told us no they wouldn't discount the fee and we certainly didn't *have* to accept his credit card.
At the guy's insistence, I asked our CFO who about fell out of his chair....no we were NOT going to take a $30K loss on his bill!
Jorre: OMG!!!!!!!! I wanna know who the heck pays ONE MILLION DOLLARS on a credit card!!!!!! Geesh, I'd think his company would want more financial control than that! Don't you think a payment like that would take a signature or two rather than just "some guy" ok-ing it on the company plastic? Good thing you made that call! 
You'll have to look into 'chargebacks' do a search on people having problems with chargebacks and you will see what I mean, not sure if it's different than with ebay payments, but someone can just 'contest' a payment and it will end up in a big black hole' while they figure it out. there are some horror stories out there...just look into them before you jump in.
You'll have to look into 'chargebacks' do a search on people having problems with chargebacks and you will see what I mean, not sure if it's different than with ebay payments, but someone can just 'contest' a payment and it will end up in a big black hole' while they figure it out. there are some horror stories out there...just look into them before you jump in.
It surprised me when I found out a certain large caterer didn't take credit cards ...... until I figurd out that this was probably why ..... they didn't want to deal with people contesting anything on their service by contesting the charge on the card.
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