For a long time, Erik has been charging an extra 3.5% when clients want to pay by credit card because of the extra expense of accepting a credit card.
Only about 5% of clients opted for that payment option. But that meant that a lot of clients paid by check, but that lead to a delay in getting paid.
He recently changed the policy due to a complaint from a new client who didn’t want to pay the 3.5% fee. Although there’s a clear provision in the contract that allowed the company to collect the fee, he decided to switch the paradigm to incentivize clients to pay the way they what them to pay – by ACH (automated clearing house).
Now the company doesn’t charge a 3.5% fee for credit cards. Instead they provide a discount if clients pay by ACH, and they don’t accept checks except for from a few legacy clients. The extra expense of credit card fees will be offset by a planned increase in service fees in the new year.
It’s easy to brush off a complaint from a single client. But for every client that complains, there are probably 10 times as many that aren’t happy the same thing, but haven’t said anything about it.
Think about how you can reframe your policies to turn negatives (ex: charging a fee) into positives (ex: giving a discount), but still get what you’re after in the first place. It’s a win/win for you and your clients.
Erik J. Olson is an award-winning digital marketer & entrepreneur. The Founder & CEO of Array Digital, he is also the host of the Journey to $100 Million Flash Briefing and daily podcast, and the organizer of the Marketers Anonymous monthly meetups.
Kevin Daisey is an award-winning digital marketer & entrepreneur. He started his first company when he was just 23, and is the Founder & CMO of Array Digital. Kevin is the also the co-host of the Journey to $100 Million Flash Briefing and daily podcast, and the co-organizer of the Marketers Anonymous monthly meetups.