Questions

Accepting Credit Card Payments as an onsite consultant

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Accepting Credit Card Payments as an onsite consultant

qhcomputingny
I am an IT consultant that performs IT services for homes and businesses. Recently customers have been asking if I accept credit card payments and figured I should look into accepting them as forms of payment. I was just wondering what some of you may use for this whether it's payments taken through a website, or whether you use some type of mobile credit card terminal. Which is the best and most cost effective. At first I don't think I will be taking too many, but am not exactly sure as to how many people will want to pay via this method. Is online processing cheaper than having a mobile credit card terminal? Any feedback on this would be greatly appreciated.
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    OH Smeg

    Generally speaking accepting any form of Credit Card Payments is expensive as you get charged a % on every transaction and then for the required equipment which is a up front fee and then an ongoing service fee.

    Great if you are a business with a High Turnover in sales paid this way but not very good for the odd payment.

    Also if you get any sales through Reported Stolen/Freaked/Copied Credit Cards you get to wear the cost of that sale and you still pay the Bank the % of the sale so it can get very expensive. You can get these several months after the payment has been made so you never fully know how much money is in the account. Personally I get concerned when asked do I accept Credit Cards but I've been burnt too many times previously and prefer accepting Checks to Credit Card Payments that I'm libel for.

    You may be better off establishing the ability to pay On Line and then allow your customers to make Direct Payment into a Special Bank Account setup for just receiving payments that is not connected to any other account that is breakable through any On Line access.

    Col

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    ThumbsUp2

    Setup a PayPal account to accept payments. That takes all of the fraud difficulties out of your hands. Customers can pay using a credit card even if they don't have a PayPal account themselves. Once the money is in your PayPal account, you simply transfer it to your own bank account. Of course, you can leave it there too (to pay some bills with), but it will earn no interest while sitting.

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    CG IT

    I'm with Smerg.... no credit cards for
    transactions. If they can't pay by check, then the company [or consumer] probably has $$ problems or they are going to try and screw you.

    They don't want to write a check because if it bounces, well you can charge collection fees and try small claims recovery which can amount to 3 times the check value [depends on what your state laws are for bad check writers]. They also can't claim they never authorized the charge like they can with credit cards.

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    ThumbsUp2

    Paypal accepts bank transfers too. Anybody with a verified account at Paypal has a checking account on file and can pay out of checking. Of course, the chances of large corporations having a verified Paypal account are slim and none. But, didn't he say he does IT work for buisinesses AND homes?

    All I'm saying is that it's an option. And, it's one that doesn't cost him anything to set up yet still gives his customers another payment option.

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    drowningnotwaving

    Having had two small business in the last 8 years, I concur with Col's statements completely.

    Your bank will charge a substantial (somewherer between $250 and $500) initial set up fee for the credit card solution. Then you'll usually have a monthly fee - somewhere around $50 but there is some movcement in this across different banks. Usually there is a minimum contract period with this - if you pull out early there will be substantial expenses.

    Then there is the percentages for the actual credit card usage. In Australia it is becoming more prevalent that these fees are charged in full to the client, particularly for business-to-business transactions.

    Whereas if you set up a direct deposit facility, simply by putting your bank details on your invoice, the client puts the money in your account. It doesn't cost you or your client any more than your normal monthly bank account fee.

    It usually also means that you get the money quicker (assuming the client hasn't told you a white lie about actually depositing it!).

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    0 Votes
    jeff ford

    I know this is an old post but I just recently started to work with a mobile credit card processor and thought I'd share my experience. Innerfence offers a credit card processing app for the major mobile devices, ipad and iphone, Android, Mac, Windows phone, called Credit Card Terminal. I got price quotes for this processor and a few other online merchant accounts with <a href=http://www.businesscreditcardprocessingonline.com/online-card-processing.html>ipad credit card processing</a>

  • +
    0 Votes
    OH Smeg

    Generally speaking accepting any form of Credit Card Payments is expensive as you get charged a % on every transaction and then for the required equipment which is a up front fee and then an ongoing service fee.

    Great if you are a business with a High Turnover in sales paid this way but not very good for the odd payment.

    Also if you get any sales through Reported Stolen/Freaked/Copied Credit Cards you get to wear the cost of that sale and you still pay the Bank the % of the sale so it can get very expensive. You can get these several months after the payment has been made so you never fully know how much money is in the account. Personally I get concerned when asked do I accept Credit Cards but I've been burnt too many times previously and prefer accepting Checks to Credit Card Payments that I'm libel for.

    You may be better off establishing the ability to pay On Line and then allow your customers to make Direct Payment into a Special Bank Account setup for just receiving payments that is not connected to any other account that is breakable through any On Line access.

    Col

    +
    0 Votes
    ThumbsUp2

    Setup a PayPal account to accept payments. That takes all of the fraud difficulties out of your hands. Customers can pay using a credit card even if they don't have a PayPal account themselves. Once the money is in your PayPal account, you simply transfer it to your own bank account. Of course, you can leave it there too (to pay some bills with), but it will earn no interest while sitting.

    +
    0 Votes
    CG IT

    I'm with Smerg.... no credit cards for
    transactions. If they can't pay by check, then the company [or consumer] probably has $$ problems or they are going to try and screw you.

    They don't want to write a check because if it bounces, well you can charge collection fees and try small claims recovery which can amount to 3 times the check value [depends on what your state laws are for bad check writers]. They also can't claim they never authorized the charge like they can with credit cards.

    +
    0 Votes
    ThumbsUp2

    Paypal accepts bank transfers too. Anybody with a verified account at Paypal has a checking account on file and can pay out of checking. Of course, the chances of large corporations having a verified Paypal account are slim and none. But, didn't he say he does IT work for buisinesses AND homes?

    All I'm saying is that it's an option. And, it's one that doesn't cost him anything to set up yet still gives his customers another payment option.

    +
    0 Votes
    drowningnotwaving

    Having had two small business in the last 8 years, I concur with Col's statements completely.

    Your bank will charge a substantial (somewherer between $250 and $500) initial set up fee for the credit card solution. Then you'll usually have a monthly fee - somewhere around $50 but there is some movcement in this across different banks. Usually there is a minimum contract period with this - if you pull out early there will be substantial expenses.

    Then there is the percentages for the actual credit card usage. In Australia it is becoming more prevalent that these fees are charged in full to the client, particularly for business-to-business transactions.

    Whereas if you set up a direct deposit facility, simply by putting your bank details on your invoice, the client puts the money in your account. It doesn't cost you or your client any more than your normal monthly bank account fee.

    It usually also means that you get the money quicker (assuming the client hasn't told you a white lie about actually depositing it!).

    +
    0 Votes
    jeff ford

    I know this is an old post but I just recently started to work with a mobile credit card processor and thought I'd share my experience. Innerfence offers a credit card processing app for the major mobile devices, ipad and iphone, Android, Mac, Windows phone, called Credit Card Terminal. I got price quotes for this processor and a few other online merchant accounts with <a href=http://www.businesscreditcardprocessingonline.com/online-card-processing.html>ipad credit card processing</a>