Credit Cards

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Credit Cards

Postby xide » Fri May 01, 2015 12:09 am

I've recently had to cut back on some things and find out where a lot of my money is going. We discovered that our credit card processor was really bending us over. Our last processor was pretty cut and dry with fees they were charging per month. However my local bank came to me and said he can save me so much money if I let my bank process my cards, plus I get the money faster...sounded good. I started getting statements every 3-6 months that really didn't make things clear. So since it was tax time and with the help of another credit card processor rep I discovered many things.

- I get charged a monthly fee (typical)
- Mastercard, Visa, Discover, Amex has different percentage rates (knew that for the most part)
- a debit card, credit card, gift card, store credit card (eg: target, macys, amazon,etc.) all have different percentage rates than above even though they have the visa or mastercard logo
- You are charged a fee if you process over high speed internet but not if you use the "dial up" method
- With mine I couldn't get out of that above fee because my phone was digital and was bundled with my internet package. So since it wasn't analog they said I had to pay the fee.
- Apparently I got into some 3 year contract I do not recall signing, and can't seem to find any record of it. However they're always right.
- Contracts i'm told have a typical early cancellation fee that's usually $300+ I contacted my bank and mine is $25 per month I have left on my contract. So if I have 10 months til my contract is up then I would have to pay $250 to get out of it.
- You have to lease or buy the credit card machine

As you can see my bank obviously fed me some rouffies and date raped me several times over. Not to mention stealing my money, which was really cutting my profits with their fees.

So for the past month in an effort to get some of my profits back and the fact over 50% of my sales are from credit cards I went with the "PayPal Here" I've had a PayPal account for ever so I signed up since it's free and I had nothing to lose.

I used my old phone thats not in service or I can use my tablet as a backup (both connected to my wifi) they mailed me the free card reader, and also sent me a free PayPal debit card to use or I can transfer the funds direct to my bank account. I'm very happy. A simple 2.7% on ANY card or card type, no monthly fees, and no other fees. It's even free to transfer the funds to my bank.

There's similar products out there such as "Square" but they seemed all about the same, i'm sure they all have their pros and cons. I chose the PayPal Here because I already had a PayPal and i've trusted them for years now.

I just wanted to warn anyone out there that are thinking of accepting credit cards. Bottom line is I recommend the PayPal here or similar device. Just make sure you don't get roped into any contracts, and be aware of any and all fees before you sign up with a credit card processor. I hope I saved someone some money...and headache.
If I had a world of my own, everything would be nonsense.....Who in the world am I? Ah, that's the great puzzle. I'm afraid I can't explain myself, sir. Because I am not myself, you see?
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Re: Credit Cards

Postby Huskylogic » Tue May 05, 2015 8:20 pm

Personally I use Square for that same reason. I've had many people call me offering to beat any credit card processing prices I'm currently paying. They can beat the per transaction fees, but when they add the monthly fees that I'm not paying its not worth it for me anymore. They try to tell me its to cover customer service that square doesn't offer. True, they don't have phone support, trouble is, I've never needed PHONE support. I get great email support, and my questions are always answered within 24 hours. Same with the paypal you suggested.
Strive not to be a success, but rather to be of value. –Albert Einstein
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Re: Credit Cards

Postby xide » Tue May 05, 2015 9:43 pm

Just to confirm for others who may visit this topic.... but Square also has no fees correct? Just a flat percentage right? Also can you provide me with your thoughts on their app? pros/cons
If I had a world of my own, everything would be nonsense.....Who in the world am I? Ah, that's the great puzzle. I'm afraid I can't explain myself, sir. Because I am not myself, you see?
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Re: Credit Cards

Postby Huskylogic » Tue May 05, 2015 10:22 pm

Yes, they are strictly a per transaction base. Of course if you key a card the fees are higher. They just like PayPal will be offering new card readers for the October rule changes. Square readers that will read chip cards though will cost 30.00.

I love their app. I use it as a register and my ledger. I can select specific services and it will fill in the price for me. This way when the client gets a receipt it will list the exact items or services they paid for instead of just a dollar amount. I can also use it for cash payments as well. Just to keep track of my money I can use square and print out a report at the end of the month no matter what the payment type was. Plus if a client also uses square and they pay me with a credit card linked to their square account, they automatically get a receipt emailed and I don't have to do anything extra.

There really are no cons for the app yet. Their service however costs 15.00 a month or so to sync with my Quickbooks Pro software. I just make sure I key the invoice in though when I get back to the shop.
Strive not to be a success, but rather to be of value. –Albert Einstein
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Re: Credit Cards

Postby xide » Wed May 06, 2015 12:23 pm

I assume this directly deposits into your bank account (unless there is a square account similar to paypal), how long does it take for the funds to become available? I forgot all about those chip cards too
If I had a world of my own, everything would be nonsense.....Who in the world am I? Ah, that's the great puzzle. I'm afraid I can't explain myself, sir. Because I am not myself, you see?
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Re: Credit Cards

Postby Huskylogic » Wed May 06, 2015 12:38 pm

Funds are deposited and available in my account within 48 hours of the transaction.
Strive not to be a success, but rather to be of value. –Albert Einstein
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Re: Credit Cards

Postby Huskylogic » Mon May 11, 2015 1:24 pm

I personally like the receipt option. When I'm with a client i can email them a receipt for payment no matter how they paid.
Strive not to be a success, but rather to be of value. –Albert Einstein
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