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October 2, 2012 at 9:56 am #980054happygirlMember
- Total posts: 111
Some of my clients wish to make payment via their credit cards. This will only take place approx 30 days after the actual work we have done has been undertaken.
Can you please advise if any of you provide fro this facility (we currently only have direct deposits into our bank account), and if so:
– How is this established?
– Is there a certain amount of payments required for this to be viable?
– Do we incur a cost in establishing and monthly cost
– Does this have to be done telephonically with the client or can they do the transaction straight into our account
– Is this something that is more geared towards merchants who take payments at the time of the transaction?
Very curious about this – so the more info the better
Thanks in advanceOctober 2, 2012 at 11:05 am #1119479Past-MemberMember
- Total posts: 1,815
Firstly, if they want to pay by credit card, then they should pay immediately, not 30 days later – in my opinion. You are paying fees to take credit card so will pay them, plus receive it late affecting your cash flow.
I have a Merchant Facility with the Commonwealth Bank. I pay a monthly fee for the service and a percentage on each transaction. The minimum it costs me per month is $26.50 per month if I don’t have any transactions.
I also have PayPal Business Account. Client’s can use Visa or Mastercard, or Direct Deposit to pay and do not have to have a PayPal account. There is a fee for each transaction.
My terms are paid on delivery, or for regular clients, 7 days. Many of them pay by credit card. I usually phone up on the 7th day if I haven’t received payment and they give me their credit card details immediately. It is useful to have that facility, but you can do the same with PayPal.
If you do display tables or expos, then PayPal now has a great little gadget card reader that you add to iPhones and Android phones to take payments as above also.October 2, 2012 at 11:20 am #1119480Austrapack PTY LTDMember
- Total posts: 16
you’ll also need to buy an SSL certificate for your website… Just ask your web hosting company, they usually can fix you up.October 2, 2012 at 2:06 pm #1119481Cooke ConsultingMember
- Total posts: 122
I have clients that pay 30 day net via credit card. I use ANZ it doesn’t cost anything to set up however when you cancel it they will charge you $200 for the pleasure of doing so.
There is a minimum monthly transaction fee of $29.00
If you are accepting payments online then you will need a SSL certificate (as previously mentioned) as well as some techie help integrating the merchant facility into your website as well as ensuring that you have done an adequate amount of testing.
An alternative option would be PayPal as Karen mentioned (although I don’t like them myself).
If you are taking offline credit card payments then you need to ensure you have adequate internal security measures on how you transact and store their credit card information so you’re in-line with the Anti-money Laundering & Counter Terrorism legislation :rolleyes: e.g. ensure that whoever completes the transaction your end takes a big fat marker pen and scrubs out the credit card number (except the last 4 digits).
Regards,October 2, 2012 at 8:20 pm #1119482tonykMember
- Total posts: 1,430
Agree that payment should be made straight away when it comes to credit cards.October 2, 2012 at 9:10 pm #1119483happygirlMember
- Total posts: 111
Thanks to everyone for all your time, effort and advise.
If I am reading things correctly, then it sounds like it may not be a cost effective way of receiving payments for what is a service company (we are not merchants). Especially as we only issue our invoices after our engagement, it then has to to be approved and actioned by the client.
We are only asked on a rare occassion, so may simply say we do not offer this faciltiy and please send cheque or direct payments to our bank account.
Hope my understanding is correct, and thanks to all for your effortsOctober 2, 2012 at 9:58 pm #1119484kathiemtMember
- Total posts: 1,167
There are other options.
Paypal.com.au. All you pay is the merchant fee and you can withdraw funds to deposit into your account straight after receiving the payment. Delay of about 2-3 days before it hits your account. No set up fees.
Stratapay.com.au. Qld company. Lower fees than Paypal. I think the funds are usually in your account 24-48 hours later. Set up fee but no other charges.
With both of these you don’t have monthly charges or payment gateway fees or anything else, other than the merchant fee they process. Both work well and I use them.October 2, 2012 at 10:28 pm #1119485JacquiPryorMember
- Total posts: 2,344
It’s not uncommon these days for suppliers of product or service to charge a transaction fee if a customer/client is paying by credit card. In these cases though it should only be an amount to literally cover the cost to you for accepting the payment by credit card – not to profit from. So, if you were to set up a merchant facility through a bank, or even use paypal you might be able to cover some of the cost to your business this way.
In a previous job we had a merchant facility, which was somewhere around the $25-$30 per month for “terminal rental” (minimum fee each month) + you got a fee for each transaction. From memory it was around 0.75% for Mastercard/Visa. They also had a merchant account with Amex (which could be processed through the same Eftpos terminal) and the fee was around 3% I think – so, they did actually charge the clients paying by card these additional percentages to have the fees covered.October 3, 2012 at 1:37 am #1119486The Copy ChickMember
- Total posts: 963
I’ve only had 2 clients ask to pay via credit card and I used my PayPal account for this. I advised them up front that I preferred EFT payment, as the PayPal fees were rather excessive and if they wanted to use this method, I would need to add the cost of the transaction fees.
One client was quite happy to pay the fees (which were about $10), the other decided to use the EFT option (their fees would have been about $22).
I don’t think it’s unreasonable to pass on the fees – providing the client is aware of this BEFORE you charge them and they have been given other fee-free payment options.
The only problem is, once you add a fee to cover the processing charge for the actual invoice, PayPal then calculate the fee on top of the charge you have added. I pay the difference between the final fee charge and what has been calculated on the invoice and charged to the client.October 3, 2012 at 3:05 am #1119487AngelaGirlMember
- Total posts: 330
If it’s a rare occurrence, PayPal might be the easiest option. You can set it up and then forget about it until you need it… at no cost.
You can very easily send a PayPal invoice by email, requesting payment within your set time frame and not have to worry about SSL certificates on your website, monthly bank fees or security issues.
As mentioned, customer can pay with or without a PayPal account.
The transaction fee for business accounts is 2.4% (don’t quote me on that), but it gives you an idea of costs involved an whether it would be worth your while.October 3, 2012 at 3:43 am #1119488AGMBrisMember
- Total posts: 319
We use BillBuddy, a small independent company and we basically pay a per transaction fee plus the credit card percentage of 1.8%. We mainly chose them because they interact with our billing system as well.
But you could look at ANZ or St George, they have great options also. Not to mention of course, PayPal which is cheap and fast to set up.
Most can give you real time confirmation of funds and payment also and will pay back into your business bank account.
Good luck!October 3, 2012 at 5:31 am #1119489TheGoldenGooseMember
- Total posts: 860
Had this happen a little bit lately. Am just getting them to use Paypal as it’s not a regular thing.
I too think it’s fine to pass on transaction fees they charge.October 3, 2012 at 6:47 am #1119490BurgoParticipant
- Total posts: 2,104
There is a similar discussion on the carpet cleaners forum at present. These guys use the mobile credit card system. There were a number who thought adding a small 1% charge was OK. Then there were the few who said they waived any fee but increased their prices to cover any such usage.
Why not increase your prices by the small cost of the credit card, then offer the service for free. This also helps to cover the cost of the bank even if you dont use the machine.
I personally prefer Direct Debit usually only a day to wait and no fees.October 3, 2012 at 7:58 am #1119491bridiejMember
- Total posts: 1,097
I offer credit card payment via PayPal, it’s linked with my Freshbooks account so they can pay from within that. I don’t charge extra, simply keep a note of the fees to deduct for tax purposes.October 4, 2012 at 7:21 am #1119492APCAMember
- Total posts: 13
It’s Caroline here from the Australian Payments Clearing Association (APCA). One of our key roles is to improve the safety of the payments system.
If you’re thinking of taking payments online or over the phone, you should first check out our new training program for small online retailers called Get Smart about Card Fraud Online. It’s designed to help businesses like yours protect against risky card transactions. It’s free to use: just go to http://www.apca.com.au/getsmart/.
Usually we find merchants only take card fraud seriously after they have been stung – when it’s too late. In the program we use video stories based on some of these real life stings to bring home what fraudsters get up to and how it can impact your business.
Some of the things we cover include:
• how to take card payments safely online or by telephone
•how to keep your customers’ card details safe
•ways to Identify and handle unusual or suspicious transactions.
Let me know how you find the program! – and if you have any questions.
Caroline @ APCA
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