Thread: Credit cards

I've finally decided to get a credit card service for payments. Who do you use and what should I look for? I would appreciate your feedback. Anybody use Pay Pal, they have an invoice system too? Thanks!!

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I looked at PayPal, but their merchant service has a $30 a month fee. That is unreal to me.

On the other hand, Intuit has a system called GoPay that is supposedly free (no monthly fees) and pretty competitive transaction fees. They send you a free swiper for your phone. If I remember right...swiped was 2.7% and manually entered was 3.7%.

Most of your larger banking facilities offer merchant services too, and they are usually same day deposit. Most others are within 24-48 hours after processing.

I do not accept credit cards at this time...as I grow in the future, that may change.

I stopped taking CCs several years ago and have not missed the fees in the least nor have I lost any inspections because of not taking CCs.

In fact ... I never advertised that I took them from the day I started this gig 10-years ago. It was a "convenience" when the occasional client would ask.

Now ... if it comes up ... I will do a singular PayPal invoice and their per transaction fee is minimal. Only comes up with clients that are out of town or out of the continental U.S.

Why increase your company's bottom line expense outgo with things that are a luxury?

These are tough times ... be cautious with your funds.

Nolan, Is the Pay Pal that you use the email one with invoice? I too don't really want to use credit cards. I did run into a young couple recently that did not have any checks, it's like they're going the way of a home phone.

I use Square http://www.squareup.com

I have researched them all and had Costco's credit card program untill April and I switched to Square.

With Square you have no contract. No monthly fee. No statement fees. Am Ex, Visa, MC, Discover all have the same fee/rate. No hidden fees or up charges for corporate charge cards.

The only time the fee is higher is when you do not swipe the card. Then it increases I think by .5%. The fee is 2.75%. That is all. No hidden transaction charges.

Square even provides a free card swipe device that connects to most smart phones. I use an iPhone and have had no problems with it.

What I like most with Square is that a receipt is sent via email to the client(you can even include a picture of the house) at the same time as I'm doing the transaction. They are also quick on deposits in to my account. Most of the time it is the next day.

I would say that about 25% of my clients pay with a CC or Debit card.

Square is the way to go as far as I am concerned. I'm using a Sprint HTC Evo phone.

I use Square also. I can't imagine not taking credit cards. Most of my business is done on a card... The fees aren't that bad and they are tax deductible which I consider is part of the costs of doing business.

rick

About 75% of my transactions are CC. It beats taking a cheque that might bounce. Or a post-dated cheque because money is tight. Or a cheque in the mail that never arrives.

In Canada, I use UNPS. Fees work out to $9 - 11/ transaction, depending on volume. There's a monthly fee, so higher volume lowers the cost per. I write out a slip and give the client a copy, phone the numbers in when I get home.

Sadly, Square doesn't support BlackBerry phones. Sounds perfect though.

I just started with Pay Pal and there is no monthly fee. It is a little over 3% for the fee though but no other hassel. I only got for the occasional customer but I normally get paid at closing or take checks by phone with a draft program I have.

Hey Jerry. Do you use your regular PayPay account, or their business merchant account? Just curious. I have also been looking into it, but don't feel a monthly fee is appropriate for the 1 or 2 a month transactions.

Adding my two cents worth....
I have also tried most of the services mentioned as well as few that were not and found them to be expensive. I now use "square" an only pay a small percentage when I use it no carrying costs. I have an Android phone from Verizon and it works fine.

Yep' I use Square or (square-up) it is easy and the reader is only about 1 inch square (hmmm). Works great with my Android. I like the fact there is no monthly fees All credit cards are the same fee (so you don't have to cringe when they whip out the AM EX card) if swiped, about 1% more if punched in. Many times if a client asks, I will give them a little discount for cash or check instead of the credit card.

With square I know exactly what the fee is...I never could figure out the other guy's gobble-dee-gook statements before.

The choice of email or text receipt that goes to your customer is really slick...All from your phone

This is an interesting topic for me. I have yet to have issues with the check or cash approach. Even many inspectors around here take C.C.s but my clients still seems to be able to pay the "old way" without complaints. As long as I can get away with this I'm sticking with it - though I imagine eventually my luck will run out.

I have been using Square up. One of my clients moved out of state and this made it more convenient. 1 draw back, first thirty day you can't accept more than a thousand dollars per week. my first use of this program got spread out for two months. after the first month, you can take in as much as you want. Read everything in their disclosures. I do like the system. Just didn't like that had to wait thirty days for the rest of my money.

Yes Joe. I just use their regular account. It seems eaiser and for no more than I do it is fine.

Originally Posted by Jerry Martin

Yes Joe. I just use their regular account. It seems eaiser and for no more than I do it is fine.

That's good to know. I thought maybe a business had to use their merchant account. I have a PayPal account, just rarely use it....I guess I'll look into it for that one or two clients that want to pay that way. Thanks!

Originally Posted by Jerry Martin

I just started with Pay Pal and there is no monthly fee. It is a little over 3% for the fee though but no other hassel. I only got for the occasional customer but I normally get paid at closing or take checks by phone with a draft program I have.

Paid at Closing? What if it doesn't close? Happens more than people think. Since I started 9 years ago, I have never taken credit cards - Cash or Personal Check only. Has worked out just fine. I've had only one bounced check in that time - 8 years ago, I was able to track her down to where she was living and confronted her. That was it, she gave me cash and I was on my way. Waiting till closing is a big risk IMO. Good Luck.

I have have had a few no pays but my inspection fee is only $65.00 for a WDI report so it is not a big loss. Now with pay pal I get their CC info and tell them I will only run the card if the house does not close in 90 days. I also have all the buyer's contact info from the form the ordering realtor fills out online. (Martin Exterminating | Pest begone | Martin Exterminating) see realtor support. I have one Radon abatment job ($1863.00)outstanding for 90 days from Bank of America. I placed a lein on the property and it is still for sale. I made a mistake and trusted a bank. Won't do that again.

I use Square also. I've had no problems with it. I even got the $1000 transaction limit waived by simply emailing them and explaining my business to them.

I just used Square for payment this morning. 2.75% fee taken out at the time of the transaction, no monthly fee. It took all of 2 minutes to do the transaction, most of that was showing the client how to sign with their finger on the touch screen. Of course I did have to go get the card reader attachment out of the glove box. I have to keep it in the envelope that it shipped in just to keep from loosing it! Small, simple, no contract or monthly fees, priceless!

My biggest frustration was getting out of my contract with my old processor, grrr!

[quote]

I have yet to have issues with the check or cash approach. Even many inspectors around here take C.C.s but my clients still seems to be able to pay the "old way" without complaints. As long as I can get away with this I'm sticking with it - though I imagine eventually my luck will run out

I am with you Eric. I tried using a wireless CC machine so buyers can pay at the inspection, but very few wanted to. I only had a few who payed with CC, none with debit. The monthly fees were thru the roof, (up to $150 month) and I could not justify keeping the equipment. Now for the real problem, I signed contracts and leases, which were almost impossible to get out of. Cost me big time. I should not have listened to the fast talking salesman, and read the fine print, that was my fault.
As for checks, in 17 years of inspecting I had only one check bounce.

So my advice is don't lease any equipment or get into any long term contracts. When you do, checks and cash start to look pretty good.

I've been in business 6 years and and only been asked maybe 3 times if I accept credit cards but never lost an inspection because I don't. After hearing about square-up I wil start accepting CC when the need arises. Also i've never had a check bounce (knock on wood ha ha).

I have a Square-up account for both my HI company and my Insulation company both for about 4-5 months. I have not even been asked to take a CC for an inspection, but since there is no monthly fee I am not out anything but if someone forgets their checkbook I can simply plug in the little do-hickey card reader and not have to worry about hooking up later.

I have used it several times for transactions for my insulation company. Works great and they have never held any of the payments even if i go over the $1,000 a week mark. Normally shows up in my bank account within 3-4 days.

Note; The reader is not proprietary to the account. They sent me two readers but I only have to carry one.

I don't have all this fancy equipment so I am happy to make a copy of their CC and run it later on Pay Pal.

It's so simple you won't regret it! Contact Merchant Services at your bank first to get their rates, they will be the first stop and the easiest to manage. If you shop a couple of different banks first you may be able to negotiate the cost per and the %. Ca-ching! If you take American Express you should call them directly.

Originally Posted by Melanie Mitchell

It's so simple you won't regret it! Contact Merchant Services at your bank first to get their rates, they will be the first stop and the easiest to manage. If you shop a couple of different banks first you may be able to negotiate the cost per and the %. Ca-ching! If you take American Express you should call them directly.

Before I went with Square I shopped three different banks and they were, in fact, negotiating their prices. However, when I asked if they would meet Squares prices; free service, free reader, no monthly fee or minimum and 2.75% on transactions including Am Ex, none could come close. In fact, the guy from Well Fargo said, "Yeah, we can't compete with them".

Have not taken credit catds in years and years. Payment discussion is always after the scheduling. I tell them cash, check from one of the local banks, bank check or money order. No one ever questions it or backs out. 2 semi bad checks in the 7 years in Texas. All they had to do was transfer money from their savings.

People will pay anyway you ask them. Just tell them their options and they are happy to oblige.

Been using Pay Pay for over nine years! No problems at all. No monthly fee just a small transaction fee. Used mainly for out of town clients transferring into area. I set it up under my personal account, not Merchant account. I have used Intuit but got tired of monthly fees!

In 10 years and 11,000 inspections, I can count on one hand the number of people who wanted to pay with credit cards. Two of them paid via PayPal and the other three paid with check, one of them through PayPal.

Originally Posted by Russel Ray

In 10 years and 11,000 inspections, I can count on one hand the number of people who wanted to pay with credit cards. Two of them paid via PayPal and the other three paid with check, one of them through PayPal.

1100 inspections a year! You're a busy guy! 3 a day 365 days a year, my goodness!
Now I guess we should believe you about the credit cards!

I've had 88 inspections since May 1st, 36 paid with a credit card. Being able to take credit cards makes it easier for people to spend the money. It also gives my business a more professional appearance than those who only take cash or checks (made out to the name of the inspector).

Originally Posted by Benjamin Thompson

1100 inspections a year! You're a busy guy! 3 a day 365 days a year, my goodness!
Now I guess we should believe you about the credit cards!

From October 2001 to July 2007 I had a nine-person company. It was not unusual for us to do 1700 or 1800 inspections a year during those years.

EVERYONE knows that a vendor who accepts credit cards is willingly and consciously accepting the FACT THAT THEY WILL TAKE A LOSS ON THEIR FEE.

Doing so, indicates that you are so very needy and desperate for business that you are willing to compromise yourself and accept less than you rightly deserve!

NEVER DONE IT. ( I have lost a few inspections taking this position but do not regret it as those potential clients seemed undesirable ) ( PS: I am set up for pay pal but will not use it ) ( cash or check only )

Originally Posted by Ken Bates

EVERYONE knows that a vendor who accepts credit cards is willingly and consciously accepting the FACT THAT THEY WILL TAKE A LOSS ON THEIR FEE.

Doing so, indicates that you are so very needy and desperate for business that you are willing to compromise yourself and accept less than you rightly deserve!

NEVER DONE IT. ( I have lost a few inspections taking this position but do not regret it as those potential clients seemed undesirable ) ( PS: I am set up for pay pal but will not use it ) ( cash or check only )

I do not agree.

I have never thought that my dentist, my doctor, our electrician, our dog groomer, McDonalds, or even our sons school is needy or desperate for business. It's just about making it easier to get money from the consumer.

All of those fees are deductible as a business expense, it really is a wash when it comes down to that year end figure.

I Have to concede and agree with Scott's comments.

I will be rethinking my position and might just set myself up to take credit cards.

In the coming depression we will want to maximize all sources of income.

I also, do not think of Doctors and Dentists as needy. In fact I look at them as Greedy. In spite of financial difficulties faced by most of our citizens these professional continue to increase their fees. I have relatives in Hungary who can only afford a rinky-dink Yugo for transporation. One is a Pediatrician and the other is an Attorney specializing in divorce law.

For you who use Square for your CC company I have seen they send you a reader. It appears that it goes into a device. Is this a cell phone or what?

Originally Posted by Jerry Martin

For you who use Square for your CC company I have seen they send you a reader. It appears that it goes into a device. Is this a cell phone or what?

iphone or android phone. https://help.squareup.com/customer/p...d-with-square-

Originally Posted by Scott Patterson

I do not agree.

I have never thought that my dentist, my doctor, our electrician, our dog groomer, McDonalds, or even our sons school is needy or desperate for business. It's just about making it easier to get money from the consumer.

All of those fees are deductible as a business expense, it really is a wash when it comes down to that year end figure.

The fees that you pay on credit cards, you do not pay taxes on. The fees themselves you still eat. Not that they are much but I hear this all the times. This is deductible or that is deductable. It is just the amount of taxes on those fees not the fees themselves. It is not like you get your money back for those fees.

I have found it to be tremendouslty simple to ask for a check or cash and leave it at that and never have anyone question that. I schedule the appointment and then tell them the pay options. Even out of state folks. They mail a check at the time of scheduling and the check is here the day of the inspection or the day after and once again. Absolutely never a problem. No fees. No accounting. No write off or saving on the amount you pay on taxes etc.

Just my opinion. Certainly not knocking anyone for taking them. One more step. One more fee. One more accounting task etc etc.

Originally Posted by Ted Menelly

It is not like you get your money back for those fees.

One more step. One more fee. One more accounting task etc etc.

That's right. I prefer to take a cheque, and some people prefer to pay that way, great.

But offering to take credit cards gets a reaction like, "Oh wow, I can just use my card?"

I'd rather take one extra inspection away from a competitor than sit at home with no paperwork.

I also looked at Square but didn't like the 'hold my money for 30 days' thing..

I see lots of you had good luck with Square. You don't have issues with them holding your money each month?

I started taking CCs about 6 years ago with another national agency and I enter the info on their secure website and get an immediate receipt. Too many times chasing clients who said they'd mail a check or their check bounced or the home didn't close. CCs are a must in our business.. sometimes paying a few extra dollars to have your money now instead of chasing people around for months is worth it.

Originally Posted by Matthew Steger

I also looked at Square but didn't like the 'hold my money for 30 days' thing..

I see lots of you had good luck with Square. You don't have issues with them holding your money each month?

I started taking CCs about 6 years ago with another national agency and I enter the info on their secure website and get an immediate receipt. Too many times chasing clients who said they'd mail a check or their check bounced or the home didn't close. CCs are a must in our business.. sometimes paying a few extra dollars to have your money now instead of chasing people around for months is worth it.

The day after I signed up with Square I sent them an email explaining my business and asked that they not hold any money for 30 days. They immediately responded accepting my request. I've never had any money held and I've had a few weeks that I've taken over $2500 in credit card payments.

Do you have to use a smart phone to use Square or can you manually enter via semi dumb cell phone?

Originally Posted by Matthew Steger

I also looked at Square but didn't like the 'hold my money for 30 days' thing..

I see lots of you had good luck with Square. You don't have issues with them holding your money each month?

I started taking CCs about 6 years ago with another national agency and I enter the info on their secure website and get an immediate receipt. Too many times chasing clients who said they'd mail a check or their check bounced or the home didn't close. CCs are a must in our business.. sometimes paying a few extra dollars to have your money now instead of chasing people around for months is worth it.

They do not hold my money. I have a $3,000 weekly limit before they hold any funds. It is their form of security to help stop fraud. Once you pass the first 30 days and you show that you do not have charge backs and that you are a legit business they will increase the limit from $1,000 a week with simple email request.

Originally Posted by Vern Heiler

Do you have to use a smart phone to use Square or can you manually enter via semi dumb cell phone?

iPhone or an android phone is all they support, I think.

Thank you gentlemen for the tip on Square. I was looking for a good deal for CC outside Pay Pal and this beats Pay Pal. May even help with referrals, "He even takes credit cards." Might not mean much for you older inspectors, but for a guy working with internet and mobile stuff, this works for me. Thanks again for another great thread.

I originally did not accept CC's but did accept escrow payment with a health penalty of $50. Went out of one year with over $2K receivables from escrows and tracking down title companies, producing and faxing invoices, etc. was a real pain.

I started taking CC's in lieu of escrow but did not advertise CC acceptance, only when pressed. I am really surprised during this recession that the number of clients wanting to use CC's seems to have increased.

So I went with CellCharge based on this forum recommendation several years ago and then negotiated various deals to reduce fees/cost over time. Most recently I have gone with the Costco Elavon service. No monthly fees and I am processing via the Internet a 1.99% fee, basically a swipe fee, but without swiping. The trick is to ensure you get the clients current street address and zip, considered a "qualified" transaction.

I personally am using the ISN (Inspection Support Network) to process/manage my business and the Elavon system interfaces with the ISN and sends out the paid invoice,etc.

Just got an Email from "Square-Up"

Starting immediately, businesses that swipe credit cards with Square will
have all their funds sent to their bank for deposit the next day. In the past,
if a business processed over $1,000 in payments with Square in a given week,
those funds were briefly held prior to being sent for deposit. Now, we’ve
removed that delay.

Why the change?

We’re constantly looking for
ways to make using Square even better. One thing we’ve heard from merchants is
that quick access to funds is critical.


Our goal is to help you grow your business. We hope you’ll take advantage of
the new policy and continue to give us feedback on how we can improve Square
for you and your customers.

Sincerely,
The
Square Team
squareup.com

Note, They never held my money anyway when I was over the $1,000

I just got the Square reader a month ago. I was waiting for the Android phone from Straight Talk. I finally got one at Walmart last week. Still figuring it out. As soon as I do I will download Square's app and start using CCs on it. And btw I pay $45.00 monthly for unlimited talk. text and internet on this plan. No contract or cancellation fees.

Thanks for this info. It took me less than 3 min to sign up, the reader is coming in 5-7 days. Now all I have to do is figure out what the reader is and how to use it.

I have to admit it's kinda scary, with the last 4 numbers of my SS# they automaticly know stuff about me from apx 50 years ago.


My bank transfered [ I guess sold ] my account to another bank. I got my statement today from my bank, $2100 deposited, $177.00 for fees charged. This is apx $80.00 more per month than I was paying.
After an hour on the phone they figured out I'm paying 3.6% . plus fees?
The girl didn't have a clue what the fees were, and asked me if I wanted a break down of charges { the statement only states what the total fees charged are]
Now I have to wait 7-10 days to find out what the secret fees are.

Anyone passing the cost of the transaction to the client? I am considering a handling or processing fee if I take a credit card.......

//Rick

Originally Posted by Rick Bunzel

Anyone passing the cost of the transaction to the client? I am considering a handling or processing fee if I take a credit card.......

//Rick

I don't think it's legal to charge a fee.

Originally Posted by Rick Bunzel

Anyone passing the cost of the transaction to the client? I am considering a handling or processing fee if I take a credit card.......

//Rick

I believe your credit card company frowns upon and may insist you don't charge any extra fees for folks that use their card. I would never mention a fee. I would get the info from them first and then discuss price if you know what I mean. I charge more for different cities and different areas of cities but again your credit card folks may penalize you in some way.

Perhaps a price increase of 5% and then a discount if they pay cash or check.

Originally Posted by Jerry Martin

Perhaps a price increase of 5% and then a discount if they pay cash or check.

I never read anything on discounting for other forms of payment. I do believe it is all one way with them.

Originally Posted by Rick Bunzel

Anyone passing the cost of the transaction to the client? I am considering a handling or processing fee if I take a credit card.......

//Rick

I'm sure the credit card companies don't like it if you "discourage their use" by charging more or offering a discount for cash, essentially cutting them out of their piece of "your" business. But it is your business! That being said it is probably best not to tack on an extra fee (say $10) just because it could leave a (lasting) bad taste in the mouth of the client at the 'very end' of your contact with them. It would probably be better to raise your fees $10 and offer a discount for cash or check. More and more people use the credit cards for everything and expect it.

Before I started using "Square" I would cringe if someone pulled out an AM EX card....Because they loved to get their 1% back...What a scam...I stopped taking AM EX because at the end of the day they actually cost me at least double in fees than other CCs. At least with Square, I know what my costs are and can figure that in to doing business.

On a side note: We go up to a a place called Navajo Lake at least once a year. I make sure to bring Cash because they charge an extra $5 each time you use a CC because they only have contact with the outside world with a Satellite Phone.

Visa's policy:

Checkout Fees | Personal | Visa USA | Personal | Visa USA

Originally Posted by Dom D'Agostino

Visa's policy:

Checkout Fees | Personal | Visa USA | Personal | Visa USA

Good to know! Thanks

I charge $10 more than my competition. I take cards, most of them don't. I deliver electronic reports, many of them don't. I don't worry about what form of payment my client is going use because (with using Square and Pay Pal) I take all of them. I feel that if you add value to the price, people will pay it. Works for me.

I use Payfuse through My Website on Home Inspector Pro and my clients just go to my site and pay on-line.

It pretty easy and is about 2.07 to 2.37% depending on the card.

I do out of a convenience for my clients and seems to be very well accepted. Why not make it easy for them?

Since this is yet another thread about credit cards I feel compelled to comment re; PayPal.

While reading an article about "rip-off" credit card companies, PayPal was included because they had the same BS practices as the others identified in the article.

The following is a quote lifted from that article. Those that use PayPal should take note.

"Most of us know PayPal as that thing that we use to buy stuff on eBay with, and also probably the expensive way to get money on or off the Internet (as opposed to, oh I don’t know, an actual credit card). For those who are fans of redundancy, PayPal also offers a credit card. To online retailers and freelance workers, PayPal can be a convenient way to move money around the Internet with relative speed and convenience, and some people like the idea of keeping these accounts separate from their bank or “real” credit cards. The problem arises not with the card itself, but when you try to get access to the money in your PayPal account to pay off your balance. Funny enough, PayPal is not legally considered a bank, meaning it’s not subject to the reams of laws and consumer protections that banks are. While this makes sense because PayPal actually holds on to your money (instead of lending it out as banks do), that means you’re dealing with a private company with their own policies about how you get to your money, and we all know that customer support is a real joy to deal with when you’re trying to transfer funds to pay your bills on time or avoid a ten percent jump in interest rates on your credit card.
What does this mean for the average PayPal user? It means that, “for whatever reason at any time because we want to, so now go screw yourselves, that’s why”, PayPal can freeze your account and redistribute funds as it sees fit. This happens especially often to online merchants, and pretty much all the time during informal charity events. In one case, more than $30,000 raised for victims of Hurricane Katrina had to be returned. Why? No reason, just because PayPal thought it looked “suspicious”. And while every other credit card company on the planet will inevitably try to suck a few extra fees and interest rate hikes out of you, at the very least they let you spend your own money."


I certainly would not want to have my money arbitrarily locked up for 6 months by some cubical dweller drone putting their own spin on a misunderstood company policy!


Take cards or don't. I would suggest that you avoid PayPal like the plague.

Originally Posted by Don Hester

I use Payfuse through My Website on Home Inspector Pro and my clients just go to my site and pay on-line.

It pretty easy and is about 2.07 to 2.37% depending on the card.

I do out of a convenience for my clients and seems to be very well accepted. Why not make it easy for them?

I used PayFuse, now TSYS for the last year. Their fees were ridiculous!
Looking over my statements for the past year indicated that the average monthly fee was in the range of $30, even when I did not use the service. When I tried to cancel, they wanted to hit me with an "early termination fee" of $400!!! No pro rate on time left, which was only one month. Freakin bandits!! They are getting kicked to the curb next month when this "Deal with the Devil" has run it's course. I've gone with Square and am very happy so far.

Dana, Was that through Home inspector pro? It has been pretty good for me and the fee have not been that large.

Originally Posted by Don Hester

Dana, Was that through Home inspector pro? It has been pretty good for me and the fee have not been that large.

Yes, it was the one offered through the HIP web hosting system. I have not had a good experience with them and it has been an expensive lesson. Moot point in any case. No one ever used it on the site. Although rarely used, the fees were $25 to $40 a month. If it were not for the outrageous "early termination fee" of $400 I would have dropped them like a bad habit long ago. That ends this month so bye bye!
I'm going with Square for now.

Originally Posted by Dana Bostick

Yes, it was the one offered through the HIP web hosting system. I have not had a good experience with them and it has been an expensive lesson. Moot point in any case. No one ever used it on the site. Although rarely used, the fees were $25 to $40 a month. If it were not for the outrageous "early termination fee" of $400 I would have dropped them like a bad habit long ago. That ends this month so bye bye!
I'm going with Square for now.

That is interesting have you contacted Dom on it? I sure would.