Ryan,

You've thrown out some rates and capabilities that I've never heard of before. I suggest that you log onto the Bulletin Board and start a thread so that we can all learn more about the benefits and costs of accepting credit cards on our washers and dryers.

Larry

Larry,

I realize this answer comes a bit late, but the numbers your quoting (if correct) would mean adding CC to a business is a total loss-leader.

Short answers;

The technology is available to allow an operator to avoid any 'per swipe fees' and instead pay a single transaction on the total visit. All funds are verified up front before any services are given (just like a gas pump) so operators are not 'on the hook'.

Rates will vary for the entire transaction between 1.01%-1.64% + $.05-$.15 cents on competitive rate plans. So total cost of ownership is commonly averaging out to 3-3.5% total with an expected increased in average dollar per ticket on multi-vend washers/dryers of 15-23% (so more than justified)

The coin-industry has a lot to gain by diversifying their payment options.

Ryan Carlson

Ryan,

Installing credit card readers on a few larger washers would be a relatively easy way to move toward credit card acceptance but how can an operator pay a minimum transaction cost of perhaps $1.50 or more each time a customer swipes her card on a $4.00 washer? That's a 38% fee.

It may be possible to bundle transactions together and submit them to the credit card company at the end of the business day but that leaves an operator vulnerable to acceptance of a credit card that is not valid and not finding out until long after the customer is gone.

Larry Adamski

I'll bite.

Let's not forget the operator that currently takes cash and has a customer base that's evenly split down the middle between cash-only customers and those customer that WOULD use a card (credit card, debit card, prepaid card) if they were given the chance.

Technology is now available to KEEP coins, or upgrade to dollar coins for the cash-only crowd. Operators then have the option of retrofitting card readers to select equipment (perhaps anything that costs $4.00 or more to start) and take bank/credit (Visa, Mastercard,etc) directly on the equipment. Skip the intermediary 'frequent washer card' for the customers who either can't afford to tie up funds on a prepaid card OR are an infrequent user of the facility (tourist, business traveller, annual drapery washing, etc). These same systems offer the option of adding a customer loyalty program to open up the "marketing options" that Bob mentions.

So perhaps the happy medium can be found for individual operators that are looking for cash-reducing solutions but cannot fully commit to a total retrofit of the entire laundromat. If the customer base of a particular location shows major adoption of the card side of the business it's easier to justify going 100% cashless - or - operators may find that going with a mix of cash (whether thats quarters or dollar coins) AND card acceptance on larger equipment will help both operators and customers "have their cake and eat it too".

There are advantages to the operator for going 100% cashless as Bob points out, primarily security. But in today's market and with the availability of new technology nobody has to make that difficult decision anymore and now has the option to ease into this new way of taking customers money both from a financial investment, but also in easing customers into a new way of doing things without taking away familiar ground.

~Ryan Carlson

Bob,

You knew you'd be hearing from me, right?

The next logical step for most quarter laundromats will be taken when they convert to golden dollar coins as I have done. How do I market with coins? Simple. My machines can be easily programmed for Special Event pricing to lower the price at specific and repeatative times as I did this past December. I can also distribute discount coupons or run a Wash Club. Actually, I have more marketing options than I care to use.

As far as taking a vacation goes, with dollar coins, my coinbox capacity is great enough that they don't require emptying and my changer capacity is now great enough that they don't require filling while I'm gone.

Dollar coin conversion does not require any special customer education like cards do. Just provide the dollar coins, explain that everything operates on dollar coins now and let the customer drop the coins in the meter just like she used to drop in multiples of quarters. It's fast, it's easy, it's not confusing and it works.

No, it's not time to go from "coins to cards" ... it's time to convert from quarters to golden dollar coins.

Larry Adamski