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  • #990090
    Jatacid
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    Hi there,
    I’m new to these forums and fairly new to the whole business thing.

    I am setting up a website for some graphic design services and was wondering how do I go about receiving payments from people?

    I’m not expecting a high volume but values may be quite high.

    What are my options?

    I’ve done a little bit of research but paypal charges almost 3% to receive payments which would hit my volumes quite a bit.

    Direct deposit is an option but not really professional or convenient way for customers.

    I haven’t got a business account with my bank because the fees are so much higher and I’m operating under my own name/abn anyways.

    What is the best way to do it? Invoice/collect payments?

    #1175429
    Nick the Startup guy
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    I’ve just started out in business too.

    I suggest that you keep with PayPal. I’ve just bought the PayPal Here device and plan to use it for my customers. I’m only charged 1.95% per transaction.*It means though, I can accept payment wherever I go, whether it be at my office or at a clients’ office.

    Most businesses I know these days, charge their clients a 3% credit card fee so I don’t see why you can’t do the same.

    The alternative is an expensive setup with the banks. You’ll need a business account, a merchant account plus pay a monthly merchant terminal fee PLUS transaction fees . This can cost you mega bucks before you’ve even made a sale, whereas PayPal only charge you per transaction.

    #1175430
    MatthewKeath
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    Hi,

    Nothing wrong with direct deposit.

    Paypal is good to offer – you need to add the fees into the cost.

    Pin.net.au is a good non bank way as well – we take CC over the phone with this.

    Good luck!

    #1175431
    JohnTranter
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    I only use direct deposit and my invoices range from $200 to over $15k.

    I use Harvest ( https://www.getharvest.com/ ) to generate invoices. Jobs over $1,000 require a 30% deposit upfront and remainder is due on delivery. Some larger jobs also have milestone payments due at stages of the project.

    Make sure you use a contract for new clients as it lays out what you will and will not be doing. I’d suggest looking at some open source ones such as ‘The Contract Killer” http://stuffandnonsense.co.uk/projects/contract-killer/

    #1175432
    Thomas – CheckVault
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    Like other have said PayPal or Pin are good options.

    You could also consider CheckVault, an easy to use escrow payment system that includes BPAY, direct deposit and credit cards. We also have milestone payments for more complex projects.

    #1175433
    bb1
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    Not sure why direct deposit is not professional.

    #1175434
    James
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    Direct Deposit / EFT is definitely the way to go. Any other methods should be supplementary in the early stages.

    I don’t think there is any perception that this payment method is unprofessional. In fact I’d hazard that it’s by far the most popular in the professional services industries. So no need to worry about that.

    As mentioned, definitely look at an accounting or invoicing software to make your life easy. Some people swear by Excel initially, but I personally think it’s worth learning and using an accounting software from day one. SAASU and Xero are my picks.

    #1175435
    Jatacid
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    Thanks for all the replies guys, lot’s of useful advice here.

    I think it’s best to include a ‘methods for payment’ section on the invoice and include direct deposit and then paypal details indicating the %2 surcharge will be added to the cost.

    #1175436
    James
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    Jatacid, post: 204110 wrote:
    Thanks for all the replies guys, lot’s of useful advice here.

    I think it’s best to include a ‘methods for payment’ section on the invoice and include direct deposit and then paypal details indicating the %2 surcharge will be added to the cost.

    Multiple payment methods is a good choice.

    It’s worth noting that PayPal has a ‘No Surcharge’ clause in it’s usage policy, so you technically can’t quote an extra 2%.

    Just something to be aware of.

    #1175437
    Jatacid
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    James Rayers, post: 204111 wrote:
    Multiple payment methods is a good choice.

    It’s worth noting that PayPal has a ‘No Surcharge’ clause in it’s usage policy, so you technically can’t quote an extra 2%.

    Just something to be aware of.

    So how can you pass on this cost to the buyer?
    I know even buying tickets with Jetstar they make you pay it

    #1175438
    MatthewKeath
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    Jatacid, post: 204112 wrote:
    So how can you pass on this cost to the buyer?
    I know even buying tickets with Jetstar they make you pay itIf it’s a $2000 job 2% is only $40.

    Just add $40 on to your price and don’t worry about surcharges.

    #1175439
    Nick the Startup guy
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    Just remember, you should provide a payment solution for your customer, not whatever is necessarily easiest or cheaper for you. Remember, you’re in business because of customers so your service has to extend beyond just the product you’re offering.

    If your target market pay with AMEX then my new PayPal Here device would be no good but I’m yet to find a startup with an AMEX card so I’m probably ok.

    #1175440
    iaindooley
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    I’d like to add my voice to the “use Direct Deposit” crowd. I’m a sole trader and just give people my bank details on the invoice. If they’re overseas, I send them a PayPal invoice. If someone says they can pay me sooner if they pay by credit card, I’ll give them a PayPal invoice, but I don’t list it as a payment option. Direct Deposit all the way, there’s nothing unprofessional about it.

    #1175441
    LucasArthur
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    Jatacid, post: 204112 wrote:
    So how can you pass on this cost to the buyer?
    I know even buying tickets with Jetstar they make you pay it

    My perception is the terminology used allows you to add extra fees to the transaction.. example, you may not be able to advise that it is a surcharge for using paypal although you may have an administrative fee to cover the processing of receiving paypal payments.

    Please do not quote me, although the wording is important…… and methodology in which or why the payment is being applied in the first place…

    Cheers
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1175442
    LucasArthur
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    Hi All

    Just a general comment on this post about receiving payments and appears to have been flirted with although not directly addressed in this post is relating to “what payment options are expected or should one accept?”

    Personally, and being old school, a simple philosophy delivered to me is to not place any barriers in front of a client that may prevent them from buying. Meaning, why would you not accept AMEX, or Diners, or Paypal, or DirectDeposit or or or unless there is actual business logic for not doing so?

    Business logic referring to the institution offering said service will not give it to you, not that it costs 2% of the processing fee?

    If it becomes a deal breaker and the client wants to walk over you not accepting paypal/amex or whatever, have you benefited from losing this potential paying client simply over not offering a basic method of accepting payments? and potentially, as Matthew highlights, a $40 processing fee that would have had you deposit $1960 into your account – clear (not incorporating COGS here of course)?

    Sometimes, in my past experiences in helping others in the SME space, it becomes a line in the sand that some business owners cant get beyond and potentially lose valuable clients over a ‘small’ fee to receive payments.. As i stated earlier, its about removing any road blocks to ensure you get a sale….

    Cheers and hope my insights were not too far afield…
    Jason

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
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