As you may have heard, major credit card providers, including Visa and Mastercard, settled a longstanding lawsuit earlier this year. As a result, merchants can now pass along a fee of up to 2.4% to customers who use their credit cards. In other words, charging a home improvement project to their credit card can cost a customer an additional surcharge ranging from fractions of a percent to as much as 2.4%, depending on the card they use.
As a result of this change, you might find customers becoming more and more hesitant to use credit cards as a payment method, which may make it harder for them to say yes at the kitchen table, especially if they don’t have the cash to pay for their project upfront.
The good news is that you’re already well-equipped to circumvent this objection—customers don’t have to worry about that additional fee if they finance their project instead. By providing the option of financing to your customers, you can offer more, close more, and earn more:
So, while this credit card change may seem like a hurdle, it’s actually an opportunity to promote the benefits of financing for your customers, which in turn benefits you.
For more tips on how to sell customers on financing, check out our blog or contact your Business Relationship Manager to get access to our Dealer Marketing Repository, which includes a wealth of tools and resources you can use and share with your customers.
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