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Credit card fees
#1
Last week a person called the salon and asked to schedule appts for two people to have facials and pedicures. He wanted to pay by CC to the salon. The owner ran the card and then told me after I booked the appt for the pedi's that she would be passing the cost of the fee to run the card onto me and the esthetician. So when she paid me by check, she deducted $4 off my payment. Is this something that is normal business to do? It didn't seem right to me but I didn't say anything. I will be leaving the end of the month as it is but this still bothered me.
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#2
I guess it depends on what you agreed upon when you started there... I know personally It does't sound right to me and it definitly doesn't happen at the salon I am at.
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#3
For tax purposes, each person should have their own account set up on the machine. By doing that tho, you would be paying a montrhly fee, and a per cent of the sales, plus possible under minimum fees if your sales are not at a certain amount. Some salon owners offer card services for no fee, and some ask for a per cent of your CC sales, usually 3-5 % im my area, for you using the machine.
I think it will vary from location to location.
Always be kind....you get farther.
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#4
It would depend on a couple of things....
what you agreed upon in writing before you started working there.
are you an employee or independent contractor? It is not uncommon for this fee to be passed on to booth renters or independent contractors. BUT, it should NOT be passed on to an employee.

It is a business expense that you can deduct at tax time.

The amount of the fee will depend upon the percentage the salon is charged by their merchant account provider as well as transaction fees assessed.
Melodie Hand
Clayton/Raleigh, NC
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#5
The owner is a bit of a flakeSmile I've not signed any agreement, it's all been verbal. I've been there the last two months and we agreed on half the rent for 2 months to help in getting my clientele built up. She expects the full amount in Dec and I still have clients. I've advertised, handed out cards, had specials, etc. I've had some come in on gift certificates that the salon sold but no rebooks on any of it. My husband is retired and unemployment just ran out and I can't afford the monthly rent so I am leaving the end of this month. I really thought I would enjoy doing nails but I've discovered it's not really what I want to do. I feel like a loser sometimes because we spent the money on school and all the supplies once I got my license. And now I'm giving up. Maybe I'll keep practicing and when I feel the time is right, I'll get back in.
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#6
when i had renters and a cc machine they were told up front they would be responsible for the fees they incur on the machine. we all split the monthly fee and they paid the individual cost.. no biggie, they paid me rent and were not working for me.. when you pay rent you cover all your costs.
i am sorry you are giving up, it takes time to build the client base and that takes money to sit there and do it.
it saddens me to hear you did not enjoy it, perhaps you could if you were someplace that was able to keep you busy, not making money and not having rebooks is discouraging but it happens, gift certs, coupons, groupons, omg they all just scream not comin back to me..lol.. they were given to them by someone else, chances are they dont do those things to start with or they would be rebooking....lol..sorry i was on a rant for a moment..
i hope for you a new place to perk your spirits back up and put you back in the mood for nails.. with lots of money attached :lol:
Kathie Kirkpatrick get a grip on reality and choke it to death
"Life should NOT be a journey to the grave with the intention of arriving safely in an attractive and
well preserved body, but rather to skid in sideways, chocolate in one hand, body thoroughly used up, totally
worn out and screaming "WOO HOO what a ride!"
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#7
Quote:reesenails :
The owner is a bit of a flakeSmile I've not signed any agreement, it's all been
verbal. I've been there the last two months and we agreed on half the rent
for 2 months to help in getting my clientele built up. She expects the full
amount in Dec and I still have clients.
As a self employed nail tech ( or renter ) then I don't think its odd that the fee be deducted from you. I have my own CC reader for my ipad and I pay a fee to accept the CC from clients. The owner of the salon or my landlord should not have to pay for that. I don't want to come across as harsh but in all honesty no matter how much your rental agreement is, your supposed to handle all your income and if the landlord is nice enough to allow you use of the machine, then yes, you have to pay that fee.
This is a hard career in some location and god knows I am having a difficult time with it and I am 18 years in. Some days I wonder what I can do on the side and others I just am thankful for what I have. Maybe a different location would work so you don't have to stop doing what you love.
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#8
reesenails :
> The owner is a bit of a flakeSmile I've not signed any agreement, it's all been
> verbal. I've been there the last two months and we agreed on half the rent
> for 2 months to help in getting my clientele built up. She expects the full
> amount in Dec and I still have clients. I've advertised, handed out cards,
> had specials, etc. I've had some come in on gift certificates that the salon
> sold but no rebooks on any of it. My husband is retired and unemployment just
> ran out and I can't afford the monthly rent so I am leaving the end of this
> month. I really thought I would enjoy doing nails but I've discovered it's
> not really what I want to do. I feel like a loser sometimes because we spent
> the money on school and all the supplies once I got my license. And now I'm
> giving up. Maybe I'll keep practicing and when I feel the time is right, I'll
> get back in.


Sorry to hear you had a rough go. I wouldn't give up totally. Maybe you could stay in it part time? It is a hard time right now to get started in a new business. Keep your license up, pay your fees so at least you can still get your supplies for your personal use. Then later you can get back in when times are better.

A lot of salons don't do agreements because they usually aren't worth the paper wrote on and it can get expensive to take someone to court. However, IRS does require you have a rental agreement should the shop or you get audited.

If you were a booth renter/independent contractor, then the owner does have the right to pass the fees on to whoever is making the income on that transaction. As far the exact amount that depends on her agreement with the credit card processing company.

Wishing you the best on your journey!!
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#9
That fee is a business expense you can deduct as a renter you are responsible for your own taxes and all that and can deduct reasonable business expenses to reduce your gross income.
Lorraine, webgirl
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