Please be aware that if you decide to keep credit cards “on file” you need to have authorization for recurring payments from each client, and you should have a secure means of storing that information so it cannot be hacked. I personally would never ever give a barn operation my credit card - I have never met a barn owner or trainer who understands enough about information security to protect that information. And as a BO/Trainer that is a lot of risk to take, IMO.
If you are using QB, set it up to re-invoice clients on whatever day a payment becomes late, and stick to your guns about the late fees. That way, clients will either pay on time or you will be happy enough with the extra cash not to care that it was late.
And really, if you are having a hard time getting people to pay - consider not charging them the convenience fee. Most people truly hate paying extra to cover a business owners cost of doing business. Which is what the card fee represents. Bake all your costs into your fee structure and make it as easy and compelling as possible for the customers to pay.
My clients are seriously screened, including searching for reputation, dispute or credit issues both online and by checking references, so such problems have been rare. My contract spells out the due date and they are expected to hit it without prompting from me.
On those rare (VERY rare!) occasions when someone has had a serious, legitimate, financial collapse through no fault of their own, I’ve been willing to work with them by boarding AT COST until they’re back up to speed; the understanding being that the situation is temporary and the owner is making every possible effort to pay in full.
I don’t want a nice horse to end up in a bad situation because of a temporary financial crisis. I had to do this briefly 3 times in 27 years.
All others in violation of ANY of the barn rules including payment, or who prove themselves a “poor fit,” get invited to board elsewhere. More than once I’ve helped someone find a place they were better able to afford, or change to a different management style that better suited them. Much better to do this than endure unhappy or entitled deadbeats who drive you to drink!
As long as the software is secure, there is no need to keep an authorization form. Ie Amazon does not have an authorization form and stores credit cards on file. Modern shopping cart software, credit card data is encrypted. But I think you are correct, most horse people do not know the correct way to do this. I have gotten into a fight with a magor equine hospital who does not know or understand PCI compliance laws over this…and turned them in. They emailed my credit card number and when I asked them not to do this and explained why is was wrong, they would not listen. NEVER email credit card numbers!
Also, please be cautious using P2P ( person 2 person) Venmo, paypal etc. It is against their guidelines and your money can be frozen. If using those services for business, please use a business account.
“If you accept a Venmo payment from someone for a good or service and we later review the payment, we may reverse the payment, meaning you could lose both the payment and the item sold. This review process may not occur until after you attempt to transfer the funds out of Venmo”
Barn owner with IT development and integration background.
Every one has horror stories one way or the other, back in ancient days of the 1990s I just has separated credit card for Horse … really easy to review charges, if suspected charges were to have been made then it was easy to call Mr Trainer’s operation to ask why the charge would have been there… there was never the need during the two years Horse had her card.
For ANY electronic transfer I have separated but linked accounts that I use, its balance is rarely above $100 unless I am transferring money which is moved to that account then transferred… all by setting here at my desk or if wanted by phone app (which I do not use as I do not trust my phone to be a save or secure device)
IF I were running a boarding operation I guess the contract would need to include a statement/clause regarding failure to pay board on time more once would result in a penalty of X number additional months of additional board as a deposit… that should escalate the failure to critical mass rather quickly
For a while I was doing Friend’s and Family transfers to my trainer/BM for board/lessons so no fees. But I have a good relationship with her and the board contract has a 30 day notice so even if I need to high tail it out of there I still owe the money. It isn’t like I can/should use PayPal’s protection to recover that money so no reason to not use Friend’s and Family.
By the way the whole “Nanny State” gets old. Many businesses have proven they can’t play nice so need laws to keep them in check. Pollution, predatory lending, redlining, etc… all come quickly to mind.
