Deciding on whether or not to accept credit cards and use a payment processor is a big decision. Initially, the prospect of credit card fees may seem daunting, as they can accumulate to a substantial amount. However, ponder this: Could not accepting credit cards be hindering your business prospects or deterring potential clients from engaging your services?

I know no one likes to see 2.9% of your hard-earned money going to a credit card fee. On a wedding package, can seem like a significant amount. Let’s delve deeper into this matter and carefully evaluate the costs and advantages associated with embracing credit card payments. Consider your own consumer behavior – undoubtedly, the convenience of using a credit card holds appeal.

Let’s Break Down the Credit Card Fees

In my experience as a Dubsado Certified Specialist and working with countless wedding pros, I think accepting credit cards is essential! Let’s actually break it down..

If you sell a package for $5,000

3% of that is $150 (or really $145 if we are being exact at 2.9%)

You keep $4,850 and don’t have to manually spend hours tracking it, don’t need to send payment reminders, actually get paid on time, show your professionalism, get a 1099-K at the end of the year & so much more. In my opinion, this is well worth the 2.9% fee.

If you want to have the expense covered but cannot (legally) directly add it to your clients – raise your rate to $5,150.

If you make $70,000 for the year, and every client paid with a credit card the fee would be about $2,100 for the entire year! This is a business expense that is valuable and worth it!

Credit card fees are a cost of doing business & a service for you.

Not accepting credit cards is hurting you in the long run.

Why You Should Accept Credit Cards

• Allowing customers to use credit cards or ACH payment makes it easy and simple for them to sign a contract and pay all in one step enhancing the client experience, especially as a Dubsado user. This gives the most functionality and automation so you don’t have to track it manually. Learn more about Dubsado and Payment Processing.
  
• If you make it complicated and they need to find your Venmo or send a check it is putting up roadblocks for them to book and say yes!

• Accepting credit cards, especially if you are a Dubsado user, provides an easy way to track payment without doing anything manually. Payments will be easily accepted using Stripe, Square, or Paypal. (I recommend Stripe, more on that later)

• Using automation to track payments ensures you get paid on time. You do not have to track people down or have awkward conversations after you have already performed a service.

• Avoid misunderstandings with couples and clearly outline your accepted methods of payment.

• When tax time rolls around you are given a 1099-K from your payment processor – not trying to figure out how much you made making your accountant very happy.

• The credit card fee is tax-deductible.

• Using Dubsado’s invoice feature shows you how much you are expected to make for the rest of the year. You can see all of your remaining payments and exactly how much to expect.

• Credit cards offer flexible payment options for couples on a budget.

• Couples can earn points, rewards, or miles when making this significant investment.

• This can make your business more attractive than others if you allow flexibility and willingness to allow credit card payments.

Wasting time trying to track payments (or not actually get paid)

is not worth the savings.

Ways to Avoid a Credit Card Fee & Still Automate

• I recommend using Stripe with Dubsado. While you can connect Square or Paypal, Stripe is the only payment processor you can use that accepts ACH payments (or bank payments via Plaid). The fee is a maximum of $5. Learn more about the Payment Processor options with Dubsado.

• Increase your prices by 3% to cover this cost
  • Few states allow you to tack on the credit card fee directly to your invoices so ensure you know the rules in your state.
  • Look at your income and calculate how much actually would go towards a fee for the year

• Changing your mindset around credit cards can be a game-changer for growth and using the power of automation.

To Conclude

Use this information to help drive your business forward and look at your income! Dubsado is currently working on offering flexibility with ACH payments and payment processing with Stripe so stay tuned!

I invite you to take a real honest look at your business revenue and see if accepting credit cards is right for you!

Want to learn more about using Dubsado as a wedding professional? Check out this blog with the reasons why I love it!