KEN KIRSCHENBAUM, ESQ
ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE
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Comments on credit card charges / Free 30 day trial - Biller Genie
July 27, 2022
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Comments on credit card charges from article on July 15, 2022
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Ken
          The card brands impose many rules and restrictions around surcharging and the other form, cash-discounting.  There are hurdles for every flavor to remain in compliance including registrations, notifications and disclosure, how you reconcile, and how you display the information on your payment receipts.  Luckily, Biller Genie handles this automatically with all the proper disclosures and reconciliation so that you don’t even have to think about it for those dealers who are using QuickBooks or Xero to manage their RMR.
Thomas Aronica, CEO
Biller Genie
305 615 2125
taronica@billergenie.com
Miami, FL
billergenie.com
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Special plan exclusively for The Alarm Exchange so that your readers can try Biller Genie for free for 30 days.  We integrate credit card and ach payments directly with all versions of QuickBooks and Xero and can completely eliminate credit card processing fees and put RMR billing on autopilot in less than 15 minutes. 
      Here’s a special link to register for the free trial: https://merchant.billergenie.com/Account/Onboarding/Merchant/TheAlarmExchange
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Response
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          Keep in mind that credit card processors may have rules that go beyond what the law requires.  It’s important to work with a credit card company that stays on top of all the laws and doesn’t make your life extra hard.  Biller Genie does a lot more than process your credit card charges.  Give Tom a call and be sure to mention that you are an alarm client and entitled to preferential pricing and treatment.
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another comment
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Ken
          The credit card charges topic definitely hits home.  I was informed that in Connecticut it is against state law to charge a processing fee or convenience fee or something similar for CC charges.  Although oddly enough the state does it themselves when you have to pay monthly taxes.  I use your standard all-in-one.  Is the wording built in already to charge for outstanding balances?  I love the idea by anonymous to charge for open invoices after X amount of days.  I assume we’d have to add that into our contract for the amount of days.  Eileen? 
   Thank you,
 David F
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Response
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          It really is remarkable how out of touch our elected officials seem to be with how the real world, and retail business, works.  A press release from the Connecticut Department of Consumer Protection issued January 21, 2021 is below.  In Connecticut a business can’t add a surcharge to a credit card payment, but can offer a cash discount, and the cash discount can be displayed and solicited.  Restaurant must love Connecticut, along with all kinds of other businesses. 
          You go into a restaurant that is well known for “cash only”; not credit cards; not debit cards; no layaway plans.  Coincidently this business also still uses handwritten paper to take your order; no computer system in this place; no sequential sales slips; no records whatsoever.  Place probably pays cash for its food, napkins, dishwasher soap and most of its help.  So what if the place is packed all the time and reports negligible sales and no income, at least the consumers aren’t being charged 3% processing fee.
          So here’s how to deal with this in Connecticut until it gets “real”.  Put your pricing on your contracts and you can have in print that you will give a 3% discount for cash. 
          Of course I’d never suggest that you don’t report your cash sale or cash RMR and don’t pay your “fair share of taxes”, so keep track of that cash.  
          Here’s an excerpt from the press release:
          “JANUARY 21, 2021 – Following a recent increase in complaints, Attorney General William Tong and Connecticut Department of Consumer Protection Commissioner Michelle H. Seagull are reminding consumers that Connecticut law prohibits businesses from charging customers a surcharge for using a credit card. 
          The law does allow a business to offer a discount if a customer chooses to use one type of payment (e.g., cash) over another type of payment (e.g., credit card). Receiving the discount is not the same as adding a surcharge. As long as the final receipt shows a discount, it complies with Connecticut law.
          “Consumers may not realize they cannot be charged extra simply for using their credit card,” said Consumer Protection Commissioner Michelle H. Seagull. “But it’s important to watch out for these unlawful charges and avoid paying them before it’s too late.”
          “These so-called convenience fees may be common, but they are not legal in Connecticut. Businesses may offer cash discounts, but they cannot tack on extra fees for using a credit card. Know your rights, and don’t pay more than you should,” said Attorney General Tong.”
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more comment
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Ken,
          Great topic regarding the different types of payment.  During the covid lockdown, we realized how important it was to move our clients to automatic payment as did a deep dive into our true costs between paper checks, ACH and credit card.  From our analysis, ACH was by far the most cost-effective approach.  Credit card was the second most cost effective, but certainly not as cost effective as ACH due to the fees.  The most expensive was paper checks, as that required receiving the checks, manually opening the checks and manually entering the checks into our accounting software and then driving the checks to the bank.  Since that time, we have a check processing machine at our office, so we have reduced that cost.  Additionally, it must be noted that both ACH and Credit Card payments automatically updated our accounting software so there was very little individual account entry necessary.  However, during the Covid initial shutdown, it also required an employee to come to the office each day to receive the checks in the mail, which is time consuming.  Since that time, we have pushed our new clients to going to an ACH payment, and adjusted our pricing if they want to pay recurring via credit card or paper check.
          Additionally, our proposals on new work require that a client provide either an ACH or Credit Card upon acceptance.  We allow them to check-off that they are going to send in a check within 7 days, but that if payment is not received, they have agreed in advance that we will use their electronic payment.  It is our opinion that we are not in the business of hunting down payment, but the client’s responsibility to pay timely, with the payment method that they are most comfortable using.
          If you want to publish this, feel free, but please withhold my name and simply put Name Withheld
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Response
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          Thanks for sharing your experience and expertise.
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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301
ken@kirschenbaumesq.com
www.KirschenbaumEsq.com