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  • #984214
    ark8architects
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    As a service provider, I thought it would be helpful to be able to offer clients an additional means of paying our professional fees (invoiced) via their credit card. This might help their cashflow and it would definitely help ours!

    Therefore, the question is.. Does anyone know of providers of such a service for small business?

    Some parameters would include:-
    1. Low-volume high-value invoices
    2. Reasonable transaction fees able to be passed onto clients (2-3%?)
    3. Preferably NOT requiring a merchant account with a bank
    4. Web-based

    Does anyone have experience using the “Invoicing” feature in Paypal?

    Cheers.
    Kev

    #1146468
    Jason@Plumsale
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    If you do not want a merchant account then paypal would be the best option

    #1146469
    createdevelop
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    I would highly recommend eWay, although they do need a merchant account.

    I would advise against using Paypal if possible. As an alternative I would recommend moneybookers, as they are widely recognised and have reasonable rates.

    If you are looking for an invoicing system, then there are plenty of online accounting software systems that integrate with something like moneybookers, so you can invoice and manage payments. Something like Freshbooks or Xero are pretty good.

    #1146470
    The Copy Chick
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    I only process maybe 2-3 credit card payments a year and Paypal suits my purposes very nicely.

    Because of the very low volume, I set up the invoice in Paypal so the client can use the links to pay directly from the invoice, then duplicate it in my usual accounting package so I can process the payment once it’s been received.

    For higher volumes, this may not be as practical, but for occasional invoices it’s a fairly painless solution.

    #1146471
    eWAY
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    Hi Kev,

    Do you mind if I ask why you’d like to avoid the merchant account?

    Using a provider such as PayPal is fine for startups or when you’re charging low value transactions (especially their micro payments plan for transactions under $10) however once you’re charging higher dollar amounts that 2.4% merchant service fee will start to feel expensive, particularly to the customer if you’re moving it on to them.

    If you go with a banks merchant facility you’ll be looking at around 1% – 1.5% (as a guide, we can setup CommBank merchant accounts with an agreed rate of 1.48%, but we connect to all of the banks)

    Something that you might like to look at is Xero’s new service ‘Pay Now’ which has eWAY integrated in to your invoices. This would handle your invoicing, paying and bank reconciliation. Ignore the ‘Coming Soon’ it’s already here! http://blog.xero.com/2013/06/eway-coming-soon/

    If you’re using a different service let me know and I’ll most likely know the best way to get it working with CC payments.

    Maclean
    eWAY Integration/Technical Specialist

    #1146472
    bridiej
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    I currently use PayPal and it’s suited my needs for the past couple of years, but I’m planning on upgrading to a merchant account very soon. More and more clients are paying me with credit cards, so it makes sense to have something that doesn’t cost as much – I do find PayPal’s fees quite high when you’re talking about lots of transactions each month.

    #1146473
    ark8architects
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    Jason@Plumsale, post: 167842 wrote:
    If you do not want a merchant account then paypal would be the best option

    Thanks Jason. I just found out that Paypal would not work for us, due to our business structure! They accept sole trader,s pty ltds, partnerships but not trustees.

    #1146474
    ark8architects
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    createdevelop, post: 167844 wrote:
    I would highly recommend eWay, although they do need a merchant account.

    I would advise against using Paypal if possible. As an alternative I would recommend moneybookers, as they are widely recognised and have reasonable rates.

    If you are looking for an invoicing system, then there are plenty of online accounting software systems that integrate with something like moneybookers, so you can invoice and manage payments. Something like Freshbooks or Xero are pretty good.

    Thanks. I checked out Moneybookers.. they seem to be euro-based and their fees start at 3.9%.. ouch!

    #1146475
    LucasArthur
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    Hi Kev,

    I too am curious on the reason you do not want a merchant account as eWay also asked…

    May have missed it, although how many transactions per month? value per (approx) etc.. have you also asked yourself what is the break even point to exclude merchant accounts as you have suggested?

    Also, if architect you may find people want to use AMEX a bit as well so this may also be a consideration for merchant?>?>

    please note, i am not a bank, not a merchant service although am curious.. There are MANY MANY MANY instances that would ideally suit just paypal as a service as the merchant fees of some $300 per year would exceed nominal paypal fees incurred by some businesses.. as a guide, if someone sells/processes under $10k per annum then paypal would be ‘ok’ as sole service…

    But lets say you do $50K.. paypal fee approx $1500 as opposed to a bank (est 1.2%) + monthly fees would be approx $900 as a ball park.. It will also come down to volume and if banks could ‘support’ the application and viability.. but i am just playing devils advocate..

    be well and let us know how you travel..

    Jason ;)

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1146476
    WhatsThePlanDan
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    Hi Kev,

    Stratapay may also be an option for you to look at. They don’t have monthly fees and their payment fees aren’t too bad (depending on how many transactions you have and how large of course – as with anything). Plus they give you a bunch of different payment methods in the one package (CC, BPay, Aus Post, etc). No merchant account required either.

    Cheers
    Daniel

    #1146477
    kathiemt
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    I suggest StrataPay too. Australian company, low cost but there is a set up fee. We use them for the Association I’m the President of and I’ve actually been using them through my own business for many years.

    #1146478
    ark8architects
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    SimplyReplica, post: 167953 wrote:
    Hi Kev,

    I too am curious on the reason you do not want a merchant account as eWay also asked…

    Offering a credit card payment option to our clients is perhaps a means of encouraging quicker settlement of invoices for smaller amounts (less than $5K?). , and if they are happy to accept the fee surcharges. 95% of our clients are happy to direct deposit, and a few prefer cheques for larger amounts, and there was only one or two requests for the credit card option. Most invoices are beyond average credit card limits anyway and the surcharges would be too onerous. Thus, it doesn’t make sense to be paying monthly merchant fees when there might be zero to two credit card transactions a year.

    #1146479
    InvizBiz
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    Hi,

    I have solved this problem using paymate on the go… its a gadget for your iphone or android device, and you can swipe the credit card and process through the secure app.

    It’s a very economical solution. The device is only $19.95 and they deposit the funds next day into my nominated account. There is a transaction and %, but the fees were the least I could find…

    I in no way have any vested interest in promoting this product – other than to say that it has served my purpose well!

    For more information visit http://www.paymate.com.

    Hope you find an easy answer to your question.

    Regards,

    Helen

    #1146480
    eWAY
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    InvizBiz, post: 168124 wrote:
    Hi,

    I have solved this problem using paymate on the go… its a gadget for your iphone or android device, and you can swipe the credit card and process through the secure app.

    It’s a very economical solution. The device is only $19.95 and they deposit the funds next day into my nominated account. There is a transaction and %, but the fees were the least I could find…

    I in no way have any vested interest in promoting this product – other than to say that it has served my purpose well!

    For more information visit http://www.paymate.com.

    Hope you find an easy answer to your question.

    Regards,

    Helen

    Just some quick advice for when looking at mobile scanning devices. Make sure you discuss compliance with the PCI-DSS (security standards set out by the card issuers) with the vendor. At eWAY we’ve looked at providing a similar product for swiping cards through your phone but have not found one that would comply with PCI-DSS (being a tier 1 compliant gateway this is a must for us)

    Unfortunately I’ve not got any info on the PayMate option so I can’t confirm either way so I’d suggest just having the conversation and receiving the appropriate certification for the device.

    Maclean

    #1146481
    bridiej
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    Have just looked into a merchant account/eWay and it’s too expensive for me.

    $30 a month + 2% charges from Bankwest, plus what eWay will charge. Just took a look at the fees PayPal have charged me this month and I am better off with them for the time being. So until more clients decide to pay with their cards, I’ll stick with PP. Shame as I would prefer to have a merchant account!

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