accepting credit cards for small business

[fishman]

I know somebody has to have some good input on this subject. Several people I know, myself included, own small businesses. It would be nice to accept credit cards in payment, but nobody has taken the plunge because the cost of doing so seems prohibitive. We're talking less than 10 transactions per month here to start out, maybe increasing later. I have to confess that I haven't researched the subject much at all.

So what kind of options are out there? Has anyone found a service that works for their business with similar requirements to what I've posted? I'm kind of intrigued with the idea of a credit card service that can link to a web site as well, allowing folks to pay without having to call me or physically be in my presence with their card. However, I'd like to hear what is out there.

Thanks! /forums/images/graemlins/smile.gif

 

[EddieWalker]

John,

I'm a big fan of PayPal online. Once you register with them, it's quite simple to send money from your credit card. It's just about the only way I buy anything on Ebay.

A former neighbor sets up accounts with Visa for small buisness owners. He's a total crook and will tell you anything to get you to sign a contract, then disapear. Obviously not all of them are as bad as he is, but he's not the only one either.

Have you talked to your banker to see what they offer? I'm a big fan of keeping everything at one place if I can.

Good luck and keep us posted on what you find out.
Eddie

 

[bmac]

Clark Howard, our local (but nationally syndicated) radio consumer advice personality recently mentioned that the best deal on credit card equipment and the best rate for buisnesses is from the wholesale clubs like Costco and Sam's. If you have one of these in your area you may want to check them out.

 

[Bird]

</font><font color="blue" class="small">( I'm a big fan of PayPal online )</font>

And after going round and round with them, I just recently cancelled my account and am not likely to have any further dealings with them. I paid for an item on eBay via credit card through PayPal, but eBay continued (and still continues) to show that I needed to pay. PayPal showed it paid (and they charged my credit card), but unclaimed by the seller. After repeated inquiries to both eBay and PayPay that resulted in nothing more than nonsensical e-mail replies that never answered as to what the problem was, I finally cancelled everything (PayPal did eventually issue the credit back to my credit card, while eBay still shows I need to pay). And in e-mail correspondence with the seller, he agreed to send the item COD a month ago, but never has.

The advice to go through your local banker is good advice.

 

[Hondo]

Is there a trade association related to your business? If you're in retail, you might check out the Texas Retailer's Association (or something like that). The rates through these associations are often much better than you can obtain on your own.

 

[BigAl]

Fishman ,
Do you know what kind of percentage rate the credit card processors are charging in your area ? They all flutuate and charge differently .I never heard of anyone getting charged more than 4 1/2 % who used one . It is a very agressive market and you should be able to find a fair rate . I paid 2 1/2 % when I was in business . We bought are own credit card machine and did not rent one . They are pricey ,but we got a much better rate and no rental charge . Look on the internet and you should find all kinds of information and rates .
Big Al

 

[cowboydoc]

Only doing 10 transactions a month is going to be expensive. Usually for that few they are going to charge you a monthly fee plus so much per transaction plus anywhere from 1.5 to 4.5%. The basic fee will probably be $25-35/month. Transaction fees are going to be around .25. Then you either have to buy or lease the equipment. To buy you're looking at anywhere from $500-2000 depending on what you get.

 

[Gatorboy]

<font color="blue"> After repeated inquiries to both eBay and PayPay </font>

Not sure what eBay would do about it, but the SELLER would have been who I contacted first. Sounds to me like you were dealing with a bad seller -- I hope you left negative feedback.

 

[Gatorboy]

I would use PayPal to handle all credit card transactions for you. It would only cost you 0.30 + 2.9% for each transaction.

 

[BigAl]

Wow ! That seems real fair to me . I always wondered what they charged . Thanks for that information Gatorboy . The wife is wanting a hobby and keeps talking about doing something on ebay .
Big Al