Reasons We Only Accept Credit Cards As an Agency

– We've had a couple questions recently about how we take payments as a business I use a combination of Stripe and Chargebee

Chargebee runs the recurring revenue, actually charges, and then Stripe is a payment processor, but it brings up a bigger issue because at our agency we sign 6-figure deals We do year-long contracts, that sort of stuff, and yet, we still take only credit cards I try not to do ACH I try not to do wires We haven't done a wire transfer in the last three or four months, and today, I want to explain why that is

Why do we only take credit cards? There's two major reasons The first is ease of signup Like we talked about in past videos, the way that we sell, it's that discovery call Then normally, it's a proposal Once the proposal is approved, it goes to contract and is signed

I found that it's better to get the payment as quickly as possible to avoid any delays, and the quickest way to get that payment is to have them fill in their card because once the contract is signed and approved and gone through the entire process that it needs to go through to get that to happen, you don't want anything to stop it, and getting that payment or that first check is a stopping point for a lot of companies, a lot of deals The second reason why is it completely avoids collections I've worked at companies in the past where they had a guy on full-time collections His entire job was just to call clients every single month who would consistently be late and ask for the money With credit cards, especially when you use something like Chargebee, the clients are getting billed every single month automatically, which means payment becomes secondary

Neither you nor the client really has to worry about making payments on time You don't have to deal with collections calls, and then us, as Experiment27, we don't have to waste our time or resources hiring a guy whose sole job is to chase clients down for money One of the main hesitations for accepting credit cards is the credit card fee I think we pay 3% or maybe 35 with Stripe, which some would say is high, but I think it's worth it because if you factor in what you would normally pay on collections or what you'd miss out with missed payments, it's just a no-brainer

Before we switched to a credit card only system, we've missed maybe $30,000 in payments just from people who paid super late or didn't pay at all or just waited a long time to pay, and with credit cards, we don't have to deal with that at all So that makes it worth the 3% fee by itself, and then the other thing is chargebacks That's another hesitation with implementing a credit card only system What if someone charges me back for like 30 grand, right? That would be terrible All I can tell you on that one is it hasn't happened yet

If clients want refunds, the easiest thing to do is just refund their money, and if it is a major amount of money, then you've gotten into some really hot water with the way that you're acting as a company Thanks for watching the video Be sure to like to encourage this type of content on YouTube Subscribe for more B2B sales training, and if you need marketing support for your digital agency, check out experiment27com