Thread: Offering payment through credit card

Even though I do not want to go in the direction of collecting for services through a credit card, I feel this is something I need to look into. I have noticed that Paypal offers this service for a fee of 2.9% plus 30 cents with no monthly fees. The process looks simple by sending an email to the client. I am looking for your thoughts toward Paypal and the service they offer compared to other similar services.

I can remember this question being asked a while back but my knowledge and/or luck in finding things through the search feature is poor.

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Originally Posted by Kevin Luce

Even though I do not want to go in the direction of collecting for services through a credit card, I feel this is something I need to look into. I have noticed that Paypal offers this service for a fee of 2.9% plus 30 cents with no monthly fees. The process looks simple by sending an email to the client. I am looking for your thoughts toward Paypal and the service they offer compared to other similar services.

I can remember this question being asked a while back but my knowledge and/or luck in finding things through the search feature is poor.

PayPal can be awkward to use, you have to transfer the money to your account after it shows in your PayPal account. So it could be a week or longer before the funds are in your account. Or at least this is how it worked when I was active on Ebay.

If you belong to Costco, take a look at their program. Overall it is the best I have found. I enter the charge on my computer and the funds are in my bank account in two days. Depending on your membership level with Costco and how much you have in charges every month, they have no monthly service fees as well.

Talk to your bank, Compass and Capital One here are pretty competitive, although I have not compared prices, my setup is easy to use.
I have a merchants account at the bank and I use the telephone (cell phone is no problem) to dial up, enter a code, etc., no equipment needed, and the funds are immediately charged to their card and posted to my bank account at the close of the day. I then go on line to transfer the money between the merchant account and my regular checking account when I balance my check book or when ever I need the money (pretty often these days ) I don't process very many per month, but it makes it easy to get paid on the spot rather than waiting for a check.
I only take Visa and Mastercard since it is an extra $5 per month each for Discover and American Express. I never took cards until relocating to the Dallas area but I could not imagine NOT taking them now, very convenient, especially for those out of town clients.

I use Payal and love it! Some clients even prefer the option to use their PayPal account rather than the cerdit card (buyer protection or something).

The issue with transferring the funds is true, but I found that by getting the PayPal debit card they offer, I can draw out up to $400 a day and simply deposit cash when needed. Otherwise, I use it as a business card for gas purchses, supplies, etc.

Totally easy, clients love it and no hassles yet.

Costco and a very large percentage of CC programs go through NOVA, they are one of the largest processors of CC's. SAM's Club has one as well.

Keep in mind whoever you use that the fees associated with processing CC's are tax deductible. Yes, it is nice to have the lower fees, but in the grand scheme of things they are all about the same. The key is when it comes to talking to a real person(in the USA!) when you have a problem or question.

If you are willing to buy a $209 terminal, take it to the to the inspection, and then plug it into a phone line to upload transactions, Merchant Warehouse is $ 4.95 /mo + $ .19 per/transaction + 1.69% for MC and Visa. Sometimes you can find the terminals cheaper on eBay, MW will program them for free.

I use Securepay. https://www.securepay.com/
Funds are available in two days. I take Visa/MC/ AmEx.

I process everything on-line without having to call or use a terminal-- very easy.

Richard -

Are they charging you the 2.19% or the 1.69% percent rate? I have not been able to find a processing company who will quote the lower rate for a virtual terminal.

Originally Posted by Joseph Michalski

I use Payal and love it! Some clients even prefer the option to use their PayPal account rather than the cerdit card (buyer protection or something).

The issue with transferring the funds is true, but I found that by getting the PayPal debit card they offer, I can draw out up to $400 a day and simply deposit cash when needed. Otherwise, I use it as a business card for gas purchses, supplies, etc.

Totally easy, clients love it and no hassles yet.

Me too, but come to think of it it was you who talked me into it, and it sure beats paying $40+ month just to have a machine, the machine was pretty cool though it worked where my cell phone wouldn't. Thank's Joe.

PCCharge Pro

Use PC Charge Pro thru our Bank. Works like a charm.

- The higher the volume, the lower the expense.
- PC based / Internet connection. (No machine / Card number only to process)

Richard,

I'm curious about the credit card processor your using.

Since 90% of my business is on credit cards, I've always had my own credit card machine at the office. I still have to enter the CC# manually since I'm not actually swiping the card at the terminal. Yeah, you do pay a bit more having to do it that way, but I'm old school and thats the way I've always done it.

The sales show up the next night in my account.

I pay something like 49. a month per %'s of the sale amount.

How much is something like you are mentioning is actually costing a month?

Are you just using the virtual processing method or what?

rick

No matter who or what you have, if you do not have the card in hand to swipe you are charged a higher percentage rate.

If you are processing through your computer (like I do), you can get the lower rates by inputting some additional information. The 3 digit security code, the clients billing address and zip code will get you the lower rates if you are going through NOVA. I think this holds true with most of the processors.

This past month I paid the following:
1.99% + .27 on 4 cards
3.47% for a Great Britain Visa + .31 (this is called a Non-Qualified)
No other fees or monthly charge.
For a total of 5 charges I paid $41.97

I average about 50 to 75 charges a year.

I send a PayPal link for out of town clients that are relocating only and cannot attend the Inspection. I send it with the Inspection Agreement. They sign the agreement and fax it back, then pay via PayPal. It great, they love it. I transfer the funds in 3- 4 days- no big deal. The fee is minimal for this convienience. I'll use it 4- 5 times per year. All others pay cash or check.

Larry,

I'm like you. I only have maybe 6-10 credit card transactions a year. I've had pretty good luck with the PayPal transfers happening normally in 2-3 days. I think I've had one take 4 days. Still, not a big deal. Usually, the clients who want to use a credit card are the ones who are out of town, or can't attend the inspection for some reason.

So, I normally execute the PayPal invoice a few-to-several days before the inspection and most clients complete their payment before the actual day of the inspection - soooooo, sometimes the money ends up in my bank account before I've even performed the inspection!! Bonus!!

Anyways, at my low rate of usage, I like PayPal because I only pay fees when I have a transaction. No monthly fees, etc. For example: on a base inspection ($325) I pay $9.73 in PayPal fees. That's 2.99%.

But the #1 reason I like to use PayPal, is that I don't have to collect any credit card information from the client. It's all kept secure through PayPal's system. In this day and age, with all the fraud and identity theft, it's important to me that I don't have to take their info. I make the client aware that I don't have to take their information, and it always gives them a warm and fuzzy - and then I tend to sleep better as well.

Good luck Kevin.

We have been using Paypal for 18 months and it works for us. I just couldn't see paying for a terminal when I have a computer already sitting on my desk. Currently 20-25% of clients are using cards. Biggest challenge is when you have a problem getting to talk to a live person Paypal.

We haven't tried invoicing yet but thats a great idea. Hopefully reduce the workload completing all the paperwork.

//Rick

Rick,

I've been using PayPal for about 3 years now, and I've never had to speak with them for anything. Since I have always used the invoicing function, I'm not sure what you are referring to as far as the whole "getting to talk to a live person" thing?

I would recommend that you try invoicing - as it's really easy. For me, I have 4 different invoices (templates) saved in my account under the Request Money section. They are templates with the basic combinations of services that I provide. So, I just pick whichever one is relative to the job, plug in the client's email address, change the property address reference, double-check the saved pricing, and then send. Pretty dang simple. Then if I ever have to modify an invoice because of a different services combination, etc., I just save it as a new template after I send it (the system basically asks you if you want to save as a new invoice after each time you send one).

PayPal has been good for me. But like I said, I don't take credit card payments that often. The other methods might make more sense with a higher volume - I don't know.

Another benefit to Paypal is their money market if you don't need the money now or don't have a better place for it - pays about 5% APR.

For example: on a base inspection ($325) I pay $9.73 in PayPal fees. That's 2.99%.

Shane, obviously I agree. I send a link but will look into invoices. Anyway, I DO pass a transaction fee onto the client. Why not?

Larry

Back to whether or not you should use credit cards at all...

It has worked great for me because some times clients say they forgot their checkbook. So I just tell them "That's OK, I take credit cards". So I never have to wait for a payment.

I am also using a system through one of the Wholesale Clubs. I bought a processor (keyboard only) for cheap on Ebay. Aside from the details of cost between the different systems, it is true that those expenses are tax deductable. In my mind it is sort of a marketing thing. I am a real and serious business with credit card logo's in my advertising.

My only issue with Paypal is that I have received those fake spam mails from "paypal" asking for information. I understand that Paypal themselves are secure, I just don't trust anything sent to me. With the Nova system I process the card and within a day or two the money is in my checking account ready to pay my own bills!

Originally Posted by Lewis Capaul

Me too, but come to think of it it was you who talked me into it, and it sure beats paying $40+ month just to have a machine, the machine was pretty cool though it worked where my cell phone wouldn't. Thank's Joe.

Anytime, brother, anytime.

Checked with my bank. Internet only = $200 for the software, 2.2% + $0.23 per transaction for credit card and 1.9% + $0.05 per item for debit card with a $20.00 a month fee. $10.00 a month statement fee.

It looks like I'm going to cross them off as an option.

Last 14 transactions I've had are on credit cards.

Can't imagine not taking them.

rick

Kevin:

If you have a Costco near you get a card system from them, very good and great deal!







Rolland Pruner

Originally Posted by Rolland Pruner

Kevin:

If you have a Costco near you get a card system from them, very good and great deal!

Rolland Pruner

As Rolland has said, try Costco if they are in your area. Sam's Club have similar programs.

I have taken CC's for since 1998 and I have shopped around. The Costco program is hard to beat. I pay no monthly fee and the rates are good. I use my computer to enter the information so I did not have to buy a terminal. I only had to purchase the software, and I think it was around $150.

Note: I'm not paid by Costco to advertise this!!