credit card on deliveries

what kind of service do you guys have?
the request for charging on credit card on delieveries is increasing and i dont like to thake creditcard information over the Phone (since ive ben victim on froudolent charges my self)
i started looking for a hand held devicefor my drivers but they are very expensive.

I take the credit card number over the phone and key it directly into the CC terminal. I have the card preauthorized and leave an option for the customer to tip the driver. The driver takes an imprint of the card and has the customer sign and fill in the total. When the driver returns with the signed copy I then complete the preauthorzation.

I have taken this route instead of the portable (even though I do use the portable for debit) because it has saved me from taking a number of stolen cards.

I have actuall only had one customer refuse to give me their number over the phone. I keep the imprint for 6 months then shred it.

The problem with portable CC terminals is not the upfront expense, as this will be covered with the lower CC qualification fees. It is that, at least in my business, where 40+% of my delivery orders are CC orders I would need a machine for each driver, sometimes numbering 14 drivers. I would have to pay a monthly batch fee for each machine, at $10 each adding almost 1/2 of a percent to each transaction. I never had a problem with people giving the numbers over the phone, but I do realize where this can lead to problems. But don’t think these same problems can’t happen with mobile machines. Any system can be beat, its just a matter of keeping honest people honest and weeding out the thieves.

Paul, you got it right with needing a terminal for just about every driver…we tried it with only one but needed to add another. They run approx $1,000 each (RBS will break it down into 3 monthly payments) Luckily delivery is not the majority of our business and we only have 4 drivers on our busiest nite since we do not deliver on Fridays. The monthly batching fee of approx $6.00 per terminal is worth the hassle of not having to deal with the customers an extra minute on the phone reciting numbers, dates, codes, etc.
Oh yeah , delivery drivers love them b/c tips tend to be much better on credit cards orders.
We have a button on our POS that alerts the drier to bring the credit card machine for that delivery…its been working for us so far

Perry,

In reading your post, you stated you do not deliver on Fridays, do you have any problems or complaints with that? I am itching to start delivery out of my two stores but can’t seem to pull the trigger as we do about 80% in dine in business and I am concerned about the delivery slowing down the kitchen.

Thanks!

Perry
Do you have any problems with CC getting declined after you have cooked the pizza and sent a driver to the door? Thats another worry I have with using mobile machines as my delivery area is loaded with college kids who never have a clue what their balance is?

Pizzapad,
As long as you are CONSISTENT with your policies it will make things easier…sure we have complaints, but our regulars understand and the ones who constantly complain are usually the ones you dont want anyways. Our policy is we deliver all day and night except Fridays after 5PM. We have a hard enough time handling take-out and dine in to take on delivery also
Paul,
We have been doing it for 4 months like this and have not had a problem yet…our market is totally different from yours though…upper middle class families/businesses…no college biz…most people have another card they can use if one gets declined though

I always take credit cards and would never turn down a sale. I use revention pos and they set up the use of the ccv number and if they dont have the card they cant charge. I have only gotten 1 chargeback in over a year! I used to get a couple a month and I deliver in the worst part of town. Checks are another story… Call your pos company and have them require that you have the ccv number for all cc transactions

We used to ask for the CCV number, but found it to be a huge pain. 75% of the customers have no idea what you are talking about and you have to spend and extra minute or two on the phone trying to tell them where the number is - and more than a few have worn off their signature stripe and thus the CCV number. Our chargebacks have NOT become worse since we stopped.

I use a mobile machine for CC and debit. If we get to busy the drivers take a manual CC machine with them and do it that way and the mobile machine can then be used for debit orders. Yes you have to look at the cost but you also have to look at how much more it can make you. People will spend more on their CC cards so it may be worth the extra cost.

Yes Mobile Credit Card Machines can be on the “expensive” side. But if you consider the extra fees you pay to Hand Key a transaction (0.50% up to 1.25%) they can actually pay for themselves over time.

PS CVV codes are used for YOUR confirmation that the person you are talking to actually has the card in hand. If you want to keep your fees down have your processor turn on AVS (Address Verification Service). By getting the AVS information this keeps your transactions from being downgraded to EIRF (Electronic Interchange Reimbursement Fee) from Manual Entry. This alone will save you anywhere from 0.25% to 0.50%.

Re: Mobile Machines

  1. Do these print a reciept for the customer?

  2. How does the customer enter a tip? If they have to punch it into the machine, do you see drivers getting less tips because it’s not as easy as just writin the tip in on a pre-authed receipt?

  3. At the end of the drivers shift, how do you get their totals from the machine (sales and tips) for cashout? Does a machine need to be “assigned” to only one driver for a shift? In general, what are the logistics involved when using these?

Thanks!

1 - YES

2 - they write in in just like the other way

3 - the driver holds on to their reciepts therefore it does not matter if the same machine is shared and all tips are adjusted at the end of the night

it is really simple and people are amazed by the service…i guess the only real issue is to make sure the cell service in your area is good based on the provider you are using…it has not been an issue for us, but there is a way to process those transactions by storing the info and it will process when you get back into a service area…you will not have real-time authorization in this case though

Thanks for the replies, Perry.

So what are the advantages? Right now, I enter CC info into my POS system and it takes care of everything - takes maybe an extra 30 seconds to get the info from the customer.

If I don’t have a problem with chargebacks, are there any other advantages to going wireless?

By swiping the card, you get a better rate on your processing. Although I’m not sure that fees associated with wireless doesn’t counteract the lower rate. Most that I have seen charge an extra nickle per transaction and a monthy access fee.

With RBS the processing charge is the same, the main difference $-wise besides the cost of the terminal is the monthly cellular fee of $20 per month PER TERMINAL. This could add up but I gladly pay it so as to make us more efficient. That extra minute per order during the busy rush is transferred to the driver’s responsibility. Especially if you live in an ethnic neighborhood…reciting CC #'s could be PURE HELL!

they print 1 reciept or 2 you can set it to do what you want I always do 2

It will prompt the customer to leave a tip so in fact drivers do better with a wireless machine

the reciepts show the order amount and the tip and the total. In out POS we just enter the total of debits and CC and whatever they are over on the debits and CC is what their tips are. The drivers keep a copy of the reciepts (thats why I do 2 copies)If they lose a reciept you can reprint whatever has been processed at any time.