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Comedy Writer Special user 594 Posts |
Is there an easy way to take credit cards? My clients have started asking - but only 3-5 a year so I don't feel like a need a big account. What provider do you recommend?
Cw |
Domino Magic Special user 999 Posts |
It's been a while since I looked into merchant accounts, but if you didn't know, it typically will cost you about $50 or so a month just to have one.
There are standard fees that you're always going to be charged and then many merchant account providers charge you a minimum processing fee a month. For example a provider may require you to charge $100.00 a month as a minimum. If you don't charge that much, they will charge you a fee as if you had. Just understand what you're getting into before you agree to sign on with any company. Some things to look at: Set-up fees Virtual terminal fee Minimum monthly fees which also include a gateway fee Length of contract and is there a penalty fee if you cancel their service early AmEx & Discover Card processing may be separate. You will also have to know how you want to process the card. Are you going to get their card info over the phone and process it through a virtual terminal or do you want them to have the option of paying you online? If paying online, then you will need to make sure your web host can provide for a secure server, either a shared one or your own, which will require you to buy an annual secure certificate. It seems a bit overwhelming at first, but once you understand how it works, it's easy. |
RJE Inner circle 1848 Posts |
I remember we looked into it at one time as well and as Domino pointed out, the fees made it so that it just wasn't worth it for us. Most of our clients pay with company cheque and the few each year that even asked whether or not we took credit cards would not make sense to use the service.
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Jim Snack Inner circle 1338 Posts |
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Kevin Viner Loyal user San Diego, CA 203 Posts |
Personally, I use PayPal. It costs a slightly higher margin than most processing companies, but most of my clients don't complain. I find that the larger corporate clients almost ALWAYS pay by check (has to be processed through accounting) . . .only the smaller groups want to use credit cards.
Warmest regards,
Kevin Viner Corporate Magician in Los Angeles, CA | Magician in San Diego | Magician in Orange County, CA | |
Joe S. Loyal user Los Angeles, CA 272 Posts |
I also use PayPal. Sometimes I eat the 3%, other times I add it in.
I used to waive my 50% deposit when I was booking a gig less than one week away because the check wouldn't arrive to my mailbox in time. Now I use PayPal to secure an instant deposit. I'd rather have 97% of my deposit and a guaranteed show than none of my deposit and a possible cancellation. |
Bob Sanders Grammar Supervisor Magic Valley Ranch, Clanton, Alabama 20504 Posts |
Although I have owned a chain of retail stores at one point in my life, I do not take credit cards in any form any more. I have no plans to ever take them again. Yes, I do have two credit cards and don't like that either. But airlines, motels, etc. make that hard to live without. I never have a balance that runs 30 days either.
Another suggestion: given the option, always use a credit union instead of a bank. Since the 80s, many banks only appear to be what you think is a real bank. The category is called a "non-bank bank" they only can do one of two things: 1. Take deposits but not make loans or 2. Make loans but not take deposits (Don't be fooled by small differences in names or locations of home office.) Neither is of much benefit to a business with good credit. Avoid them if your credit is good. You cannot build a business banking relationship with them because they are not really banks! (The stronger business customers don't borrow from banks anymore either. They borrow from insurance companies when their credit rating and business expertise allow.) By now, hopefully, you have observed that banks and Congress are not the places to go for good financial advice. The banks' Vice Presidents of Time and Temperature are not financial professionals that a businessman needs to know. Banking in the USA is not what it was 30 years ago. FDIC is simply part of the national debt it is not funded like insurance is required to be. (Credit unions have REAL INSURANCE!) Bob Sanders Magic By Sander PS --- Yes, I know. Some of my MBA students worked at banks and were shocked how much difference there is between reality and advertising. In law school, I was taught the principle here is called "Open season on fools". Government is very sloppy with regulation enforcement dealing with protecting OPM (Other Peoples' Money). |
Domino Magic Special user 999 Posts |
I previously mentioned the fees that are associated with a merchant account. You mentioned only 3 - 5 requests a year. Before you make the decision to do it, figure out how much a year it's going to cost. For example if it's $50 a month, then it's $600 a year. Not knowing what you charge, it's hard to say if that's a good deal for you or not. But if the requests come to $600 a year or less, then obviously it's not a good direction to go.
There's nothing wrong with PayPal! People are used to it and many people have an account now. It's a slightly higher per transaction fee, but in the long run, for someone with few transactions, is far less expensive. |
Carducci Special user Denver 543 Posts |
I have a virtual terminal and online checkout solution through Authorize.net. I pay about $30 a month for the service all in.
This allows me to: -Take credit cards over the phone (Virtual Terminal) -Take credit cards in person (iSwipe app on my iPhone) -Give people a link to pay online (setup in 5 mins using simple checkout) You can also add echeck services (though I've never tried that) Prior to that I used PayPal with their virtual terminal option (about 30 bucks a month) This worked fine for me until they 'upgraded' me to their new (and unstable version) I was unable to process any credit card transactions for two months. Authorize.net is cheaper per transaction to boot. Although AmEx is more expensive, I do accept it (and having one myself, I see why their business cards are so popular) |
Comedy Writer Special user 594 Posts |
Thanks - Very useful info. Another tool to use.
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James Munton Inner circle Dallas, TX 1199 Posts |
Every study ever done shows that people are more likely to make a purchase if they can use a credit card AND they are more likely to spend more. So YES! I take credit cards.
I use Intuit's online terminal. I used to use PayPal but had problems sometimes with corporate cards. Also, the Intuit service works out a bit cheaper and is more professional than sending someone to PayPal. Some people want to pay with PayPal so I still provide that option. That's what it is all about, right? Providing your customers with options... making life easier for them. Best, James |
magicofCurtis Inner circle Los Angeles 2545 Posts |
I use Merchant One.... Their fee is 1.9% and low monthly cost tenish$ as well as you can process them on their web based server, no need to purchase any equipment. I had Merchant Services which I was paying way too much in fees and month services.... I am pleased with this new company. PLUS. If I process the card before 3pm my time, I will receive the funds in my checking account THE NEXT DAY... POOF THAT IS MAGIC!
Accepting credit cards sometimes can close the deal for corporation. It makes it easier on the buyer. Paypal is a third party processor. There are draw backs but most of them do not concern the typical entertainer.....
Curtis Lovell II
http://www.CurtisLovell.com http://www.MagicofCurtis.com www.facebook.com/curtislovellii Los Angeles, California - U.S.A. |
dearwiseone Inner circle Portland, OR 1143 Posts |
I also use Intuit. It runs me about $11.95/month, plus a small percentage, usually around 2%. It seems more professional than Paypal, is cheaper, and they offer a few months for free (if you can find that deal when signing up)
With Intuit, you can swipe the customers card, or just put it in online, similar to Paypal's Virtual Terminal. I agree with much of what Bob said, treat credit cards like the plague (for personal use!) Never get into credit card debt, or carry a balance over 30 days (incurring fees) But for operating a business, James is correct, it's proven that people will have an easier time spending money, AND that they'll spend more if they're able to use their credit/debit cards. I would encourage you to accept credit cards, just try to find a cheaper solution than Paypal. Remember these costs simply take away from your profit! Best wishes! Kevin |
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