I never really had enough clients requesting to pay with a credit card to warrant a credit card machine, monthly fees, etc.
Recently, I started doing surveys for an out-of-state client that would only pay with a cc to help with their book-keeping.
With the advice I received here and a few other places, I decided to go with SquareUp, for use on my Iphone. Got everything set up and the very next day I had a new client wanting to pay with a credit card. Swiped the card and got paid. Worked great.
Now on the my other client. They pay me a fixed rate for the services I provide. I don't have their cc in hand, so I have to punch it in to my phone. No problem.
Well after doing this for several weeks, Square put a hold on my account due to the fact that I was charging the same fee to the same out of state card several times a week. I have no problem with this, EXCEPT that Square has NO phone support, so you have to email them your issue(which can sometimes be difficult in writing). After 3-4 emails and 4-5 days later, we got it straight.
The next week they put another hold on my account after transaction totals exceeded $1,000. After $1,000 in a given 7 day period, any addition transactions would be held for 30 DAYS! Again, 4 emails and 4 days later got this straight.
BTW, I'm not knocking these two issues...They seem to be perfectly legit ways to protect me, my client, and Square. My issue is they have no phone support--only email.
Fast-forward to this morning, I key in my client's card and it is declined. Call her to let her know. She says everything is fine on here end. Once she realizes I'm using square, she says she has other subs using square also and they are having problems. My client is having problems with me using Square to charge her. Apparently, Square will charge her, reverse the charge, charge again, (sometimes reverse and charge again). She said it is very confusing for them.
She suggested I try paypal. Now, they have a similar setup.
So, I've gotten all signed up and everything seems fine so far. My only issue is I have to manually transfer the payment into my bank account and then it takes 3-4 business days to show up, whereas with Square, the transaction would automatically transfer to my bank account the next business day.
Sorry for the long post, I just thought some may find it helpful.
This particular client has been very good to me and I want all of our dealings to be smooth and on time--not confusing.
I have used PayPal one time for a large payment with a credit card. It worked just fine.
I have the Square unit, but have not set it up yet. I may use the Paypal for larger amounts, and use the square for smaller jobs.
Thanks for sharing your experience. I think that the credit card and electronic payments are the wave of the future.
Jimmy
Based on what I've seen, the rates are the same for both Square & PayPal--at least when keying in the card.
Paypal can, from time to time, be a pain. I have been using them for years in conjunction with ebay sales. Earlier this year, for some reason (did this to everybody I think), they decided to hold payments into my account until the packages were confirmed delivered and the buyer was satisfied. At one point, they were holding well over $500 of MY money which I needed.
That was for something like 60 or 90 days.
I am not aware of them getting a bug up their butts about incoming money from sources other than ebay, but would not rule that out at some point.
Hopefully, since I'm providing a service and not shipping a product, this won't be an issue. Although, Paypal doesn't really know this.
My client said her subs that were using Paypal have had no problems. *knocks on wood*
Thanks for the heads up.
Hopefully it won't be an issue for service related payments. At the time while paypal was holding ebay payments, I was able to directly receive payments which were not through ebay. Just saying that it wouldn't surprise me at some point if they did something like that.
I have given some thought to using square, but have not gotten there yet. I wasn't aware of the problems people have been having. I've used Paypal a few times and not had any problems other than the wait. I just don't like to ask clients to go through the trouble, especially if they don't already have a paypal account.
With the way Paypal is set up now, your client doesn't need a paypal account.
You can set it up so they can pay through your website or they can swipe their card using your smart phone or you can key it in using your smart phone. My clients just call me with their cc info and I just key it in. A couple times, I've had to meet them onsite and I swiped it using my phone--very cool 🙂
Chris,
We use the square setup for the soccer program. It works pretty good.
In order for you to use it, you will have to upgrade that 1980's cell phone that you use!!!:-P
Jimmy
Yes, I know I will pay for that statement later. You'll put me in the poison ivy patch next time!
I use both Square and Paypal. Never had a problem with either, but I use them maybe once or twice a month. Square is easy, with PayPal, you can make an electronic invoice and email it to the client, and let them pay from their end.
Both are probably riddled with fraud, so they are probably ramping up efforts to fight CC fraud.
> With the way Paypal is set up now, your client doesn't need a paypal account.
> You can set it up so they can pay through your website or they can swipe their card using your smart phone or you can key it in using your smart phone. My clients just call me with their cc info and I just key it in. A couple times, I've had to meet them onsite and I swiped it using my phone--very cool 🙂
Are you talking about PayPal or Square? I didn't think Paypal had a swipe or key-in option on the sellers side .... Although I knew you could get around the client not having a PayPal account by sending them an electronic invoice.
I think they have come out with that just here recently. It has not been out very long at all.
Cool, I'll have to mention that to the wife, if Square is going to be hard to work with in the future.
I have a client that likes to pay his $30,000 dollar bill with a credit card and it finally dawned on me that the fee for using the credit card is $825... I am going to tell the client this year that if they are going to pay by credit card I have to add the fee into the invoice....
NYLS,
Be careful. Make sure that is legal in your state/area. I have not used them enough to know, but sometimes that is prohibited, from what I have heard. I would hate to see anyone get in trouble.
Thanks...will clarify with my legal eagle...and would not do it without the client being advised. I am going to suggest they pay the larger bills by check.
> NYLS,
>
> Be careful. Make sure that is legal in your state/area. I have not used them enough to know, but sometimes that is prohibited, from what I have heard. I would hate to see anyone get in trouble.
Jimmy is correct. You may not charge more of the client who uses a credit card. This is a Federal rule that applies in all states.
What you can do is give a discount for paying with a check or cash. The net result is the same thing. You just have to make out the invoice for the higher amount then indicate a discount for check or cash.
Larry P
Yeah, with 30k, I would get a check. For me, anything over 2-3k, I'm going to ask for a check. With small jobs, the cc is nice b/c you avaoid the hassle of the check. For a loss of $20-$30, it's worth the instant payment vs. waiting for someone to mail a check, the check bouncing, etc.
So, you're saying it's ok for him to bill his client $30,825, but then show on the invoice a discount to $30,000 if they pay by cash/check?
(I'm also assuming he would first tell his client he is planning to do this, since he had already agreed upon a fee of $30k.)
> So, you're saying it's ok for him to bill his client $30,825, but then show on the invoice a discount to $30,000 if they pay by cash/check?
> (I'm also assuming he would first tell his client he is planning to do this, since he had already agreed upon a fee of $30k.)
Exactly right.
If you'll notice many gas stations give a discount if you pay some way other than credit card. Same reason as stated above. It is illegal to charge more for a credit card transaction, but you can always give a discount for those who use other means to pay.
Larry P