How are you accepting credit card payments

[Steve Ainslie]

I run a solo consulting biz and have been taking payment only by check so far. I’m going to launch a smaller low cost service where it would make sense for poeple to pay with credit cards. It will be a one time fee of $250-500 per transaction. All online, never in person so I won’t be swiping.

I am estimating zero to ten sales a month.

My son uses paypal to accept payment for  his photography business.

Any suggestions or experience with paypal or others for this type ?

While the thought of giving up 3% per transaction break my heart, I think I need to bite the bullet to accept credit cards.

Thanks for your input.

[SeattleCPA]

I run a solo consulting biz and have been taking payment only by check so far. I’m going to launch a smaller low cost service where it would make sense for poeple to pay with credit cards. It will be a one time fee of $250-500 per transaction. All online, never in person so I won’t be swiping.

I am estimating zero to ten sales a month.

My son uses paypal to accept payment for  his photography business.

Any suggestions or experience with paypal or others for this type ?

While the thought of giving up 3% per transaction break my heart, I think I need to bite the bullet to accept credit cards.

Thanks for your input.

We use QuickBooks online and just go with their credit card processing option. I forget what the percentage is. But you do notice it.

Three related thoughts and a disclosure...

Thought #1: I don't think the argument that you'll reduce your bad debt expense or get paid faster justifies taking a credit card. I don't have some hard data rich study to back that up. But observationally I don't feel like our bad debt debt expense has gone down due to accepting a credit card. And I don't feel like we convert slow pays into fast pays with the credit card option.

Thought #2: It is massively easier to handle automatic credit card payments with QuickBooks Online. You invoice. Client pays. The money automatically drops into your account and QuickBooks handles the bookkeeping for you.

Thought #3: I think you bump the amount you were going to invoice by 3% to cover the credit card charges. It's a cost of doing business. Have clients or customers pay...

Disclosure: I'm the author of QuickBooks for Dummies... I don't think that interferes with my objectivity. But you should know about the apparent possible lack of objectivity.

[Steve Ainslie]

Thanks SeattleCPA. I love your posts and appreciate your feedback. I might checkout QuickBooks for dummies too.

[nawhite]

I just started my own business (whitewater kayak instruction) and I use ecwid.com for the online store and payment processing. They also support just using paypal but the fees are the same either way. Integrating it with my site was so incredibly easy though.

[Smokystache]

I use Square. The vast majority of my payments are check, but it's nice to even be able to say that I can take CCs. I like Square because I only pay a fee when I use it (twice a year or something).

[the_gastropod]

If this is going through your website, have a look at Stripe (https://stripe.com). Their pricing is pretty standard (2.9% + 30 cents).

[tralfamadorian]

I’ve used Square before and they have a nice interface. If you’re going through your website, Amazon pay is a nice option as well; virtually everyone has their information loaded into Amazon already so they trust it and it only takes a few clicks to complete a payment.

I use PayPal now as one of the payment options for my own business (required by one of the websites I list on) and have never had a bad experience. However, the way PayPal is set up makes it easier for someone dishonest to claw back payments and make phantom payments that they know are not going to clear.

I know both Square and PayPal allow for invoicing. I’ve never tried on Amazon pay. I also agree with the above; if the 3% is holding you back, let customers know that cc’s have a 3% additional fee. I don’t think anyone would bat an eye.

[Steve Ainslie]

Thanks to everyone for their input. I created the offering and made the rates high enough to offset the 3% fee. I looked at everything recommended and will likely go with PayPal. Now I just need some customers to buy!