I have recently had a new client inquiry (via email). This potential new client has stated that she is currently only able to pay for lessons (requested infor previously on full training) via CC. She asked if I could set up an account using Elavon, C and G merchant or BluePay Merchant. I am not familiar with any of these services. Does this sound legit? Does anyone use any of these?
I would not do this. Sounds very fishy to me.
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No. Let her know the forms of payment you accept, which don’t include credit card.
For one thing, it’s one more thing to manage. For another, I don’t think this is common at all in the horse industry, and no need to be a trailblazer. Also, there are admin and transaction fees you’ll pay. Lastly, although checks aren’t 100% safe, with a credit card it is so easy to do a chargeback and put you in a position of having to fight for your money with the credit card company, which can be tricky when the disputed charge is for services instead of product delivery, and there are no tracking numbers/proof of delivery to back up your case.
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I’ve never heard of a trainer taking credit cards but I think it’s because of the fees the merchant (you) pay and setting up the infrastructure, not because it’s not safe.I think if you issued receipts for every ride that would cover disputes.
I pay for my massage therapy by cc (and get reimbursed from my health plan) and I can’t see how I could ever dispute the service. It’s just too well documented on their end.
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However I would worry about the financial stability of the client. She enquires about full training, then downgrades to lessons, then says she can only pay by credit card.
All that suggests to me she is in a bad cash flow crunch and willing to rack up credit card debt for lessons. More credit card debt, I assume.
Lessons are an add on to life. If you can’t pay cash for them you shouldn’t take them.
Also if she is skating on thin ice financially that cc could be suspended or over limit in a while.
I would pass.
Or tell her to get a cash advance on her cc. Very bad idea!
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My barn accepts some credit cards so it’s not uncommon but we are on the bigger side. The way you presented it though makes the inquiry sound a little fishy. I wouldn’t do it just for this one person.
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Sounds scammy to me. There’s the chargeback issues as mentioned above. And if someone claims they can only pay by CC I’d wonder if they have cash flow issues/living above their means. Especially if you take a horse on for training or boarding, that could come back to bite you later.
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I agree that as presented this situation sounds fishy.
I do understand wanting to pay via card, and it doesn’t have to mean you are living over your means, although it could. CC or online payments are just darn convenient for the customer. I would be happy if either my boarding barn or trainer took CC, Paypal or something similar - just like the vet and my current farrier.
Barn and trainer take checks only. Each have misplaced checks that I had to replace and void the original. l also have to remember to write the checks, bring the checks to the barn and hand them over.
Old farrier took cash/check only so you had to have a check ready when she came (horse is in full training and trainer managed the appts, so sometimes I had short notice to get the check to the barn), but the new farrier invoices via email and takes online cc payment - much more convenient for me.
I volunteer with a school organization and our fundraising went up considerably when we set up online donation options via Paypal, probably due to the ease of use.
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I posted above I think it is fishy, but what is most fishy to me is the requirement of using 3 companies I’ve never heard of, instead of something most people have like Paypal.
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Keep in mind that this could be a scam by check too! It is VERY possible that this is not a real client, they will ask to pay you up front, regardless of the payment method. Then they will pay too much and ask you to send them back the difference. This is a known scam for this industry. Don’t take anyone’s money until they are there with a horse.
Now there is something to be said for taking credit card payments, square and paypal both have decent plugin systems for your cell phone, but they will charge you money when you use it. So unlike check or cash you aren’t getting the full amount.
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sounds like a classic phishing scam. They will dupe you to clicking on a “link” which is spoofed and collect your personal data
overall few horse people accept credit cards as the companies usually charge a service fee of about 3% or more. No trainer can afford that off the top of their fees.
since this person has not been around in person to see you, your facility and your training, why are they all the way into discuswsion of payment techniques
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This last, I agree, is a red flag. If a horse owner was really barn shopping, or looking for lessons, they would visit and do a trial lesson.
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I’m in agreement that this is extremely weird and very likely phishing. But I will say that I considered getting a Square for awhile. Many of my clients are younger (20’s) and their generation just doesn’t even get the concept of writing checks! I don’t know how they pay their rent. Most of the time, they stop at an ATM on the way to their lesson to get cash. (Which usually necessitates me having to carry change, also a PITA.) One of them talked me into using a service called Venmo (which I think is owned by PayPal). I did that for her, but ultimately I didn’t like it. They take 3-5 business days to put the money into your bank. It really isn’t a business that lends itself to electronic payment. I’ve been asked on numerous occasions if I take credit cards, but always in person and always after we had scheduled a lesson or training.
I’ve seen younger horse world people do direct e-transfers on their cell phone for things like buying tack from each other. i think it’s straight bank to bank, no paypal in the mix.
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Every bank I use provides a personal account to account transfer service (ACH) for free.
Google “Popmoney”.
That’s using a debit account, not credit. I’ve used it plenty of times when I’m buying used tack across the country. And yes, it’s bank to bank.
How I wish my barn would take a cc for board! They do take it for other services they offer (pet boarding etc) but not horse. Which is a PITA.
One of my vets is on top of things and invoices by email, instantly, from her phone. Then I pay instantly too by cc. It’s great! The other cannot get it together to invoice me to save his life…
And the farrier and all the rest of them are just as old school as can be.
Considering the many thousands I spend annually on horses it’s irritating to miss out on the cc points I could be making. I do wish the horse industry would get it’s act together to accept cards more often than not.
OP why don’t you ask one of the processing companies what your protection from being scammed via them are? Or pick your own service and use it? Charge her a cc fee on top.
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If she wants pay via Credit Card, tell her you’ll accept PayPal. It’s easy, and you can do it through an App on your phone. She can set up her account tied directly to her Credit Card, and the money transfer is safe and secure. PayPal will charge a 2.9% + .30 per transaction, so build this fee into her payment.
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Elavon is the credit card processing company partners with Costco to provide credit card accounts to merchants. I’d rather have a chargeback on Elavon than Paypal any day (we use them both daily).
With that being said, this situation sounds odd and I wouldn’t do either without knowing the client.
Many credit card companies charge a fee so decide if you want to eat the fee or add it to the bill.
I agree with those who say meet the client in person, and verify that they are someone you wish to do business with, before modifying your current payment process.
Personally I like many of the old school payment methods. For instance it’s hard to hack cash.
I think the reason the horse industry (trainers and boarding barns especially) hasn’t caught up is because the fees on credit card processing are significant and it’s a low-margin business.
2.9% + 30 cents doesn’t seem like a lot until you do the math, and then it’s “oh. wow.”
It’s not as easy as “build that into your fee structure” – Most clients flip a lid whenever the trainer raises prices. If a trainer decided to offer card processing AND adjust rates to keep up with inflation, as many trainers do regularly, they would probably get some flack from the client base.
It’s a broken system, but these are the forces at play.
