I work for a very small business that would like to start taking credit card payments. Can anyone recommend a cheap and easy way of doing this? Is there an App that facilitates CC payments, we're just looking for a really convenient (and inexpensive) option.
Can you advise what is the nature of the business?
Worth getting a quote from your own Bank and perhaps from another locally. Some will get you to sign up for a term and you may prefer not to do this, but generally the rate per transaction is cheaper. If you chose another provider that is just on demand then you will pay a lot more in terms of the per transaction rate - the difference in percentage terms is quite eye watering. BUT in part it depends on what a variety of factors eg what the business actually does/how much they are likely to take per trans/whether they have cardholder not present items/online presence....variety of things, so its worth shopping around.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
1. Your bank should be able to sort you out with a mobile chip and pin machine but these tend to be expensive £30 - £50 per month plus the merchants fee per transaction.
2. Izettle - which connects to a mobile phone. It costs something like £30 to buy the machine then there a small % on each transaction.
3. If you deal in the cloud you can add payment option such as stripe to you invoices so customers can pay by card on receipt of your invoice.
1. Your bank should be able to sort you out with a mobile chip and pin machine but these tend to be expensive £30 - £50 per month plus the merchants fee per transaction. Like I said earlier, those base fees depend on a number of factors, including the nature of the business/sector, so you can pay a lot loss. Or indeed a lot more per month.
2. Izettle - which connects to a mobile phone. It costs something like £30 to buy the machine then there a small % on each transaction. I know a few businessEs who use IZettle. I find the percentages much higher than most banks, but there is no minimum sign in term.
3. If you deal in the cloud you can add payment option such as stripe to you invoices so customers can pay by card on receipt of your invoice.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I would also say Paypal here. Very similar to izettle and somewhere in the region of 3.5%. As Joanne says, that's more than you'd pay from a bank but offset by no monthly fees.
For bank, going back a while now, but we used Streamline via Cardsave when I worked for a motocross company.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Thanks all/ The business is an Events based business, so customers are mainly purchasing dinner places at Gala Awards Dinners/Luncheons (£100-£1500 per transaction) and Conference places (£60-£800 per transaction). Orders generally come in 1-4 months prior to each event, but some months are very quite so I'm not sure whether a monthly fee would be welcomed. A lot of customers are happy to settle via BACS/cheque. It would just be nice to offer a Credit Card facility as customers are increasingly asking me whether they are able to pay that way, so I said I'd look into it for the owner of the business.
Thanks all/ The business is an Events based business, so customers are mainly purchasing dinner places at Gala Awards Dinners/Luncheons (£100-£1500 per transaction) and Conference places (£60-£800 per transaction). Orders generally come in 1-4 months prior to each event, but some months are very quite so I'm not sure whether a monthly fee would be welcomed. A lot of customers are happy to settle via BACS/cheque. It would just be nice to offer a Credit Card facility as customers are increasingly asking me whether they are able to pay that way, so I said I'd look into it for the owner of the business.
Hi Maria, I work for an online payments company and happened to see your question on Twitter. Based on what you have written I assume that you need an online payment solution rather than a point of sale one. The big question is how many transactions would you expect over a given period of time?
Payments made in advance are generally regarded as high risk, simply because of the greater probability of something happening to the event, particularly it being cancelled. For this reason, payment companies may be reluctant to offer you a service without some guarantees or typically retain your funds until the event is over and the possibility of any refunds or chargebacks is diminished. Allowances are made, but these will tend to depend on the amount of money being collected - hence my question above.
This is my first post, so I am not sure how the forum works. You are welcome to contact me directly (if that is possible!) if you would like to discuss your requirement (my email is marketing@nochex.com - if this can be published). Alternatively, just indicate the approximate number of transactions here.
It's a pretty freindly site (ignore the posts where spammers and SEO pushers get savaged, lol). Generally the site doesn't permit advertising in early posts but this one is completely different in that you are attempting to help in direct response to what appears to be a posters genuine question (#1) so I've no problem at all with your post and welcome to the forum.
all the best,
Shaun.
#1 we've had some new posters ask a question which is just a pure settup for a second poster to respond to but those one's are generally pretty easy to spot and remove.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I had a similar thing a few years ago, have you googled virtual terminal at all?
We had one with Barclays, you basically get a website to log into, enter the card payments and then the money is deposited to your account a few days later.
It worked well for us as we only needed to take an occasional payment, I think it was about 3% fee per transaction, (cant remember the exact amounts) & a small monthly fee.
To have a POS system would have cost ridiculous amounts of money, especially when factoring in the additional phone line and minimum fees.
Hi Yes most of the Banks do provide full range of options for taking car payments, including the online options and some via smart phones too.
Just thought I would mention that the fees you pay will NOT be the fees others pay as it is sector driven as well as a number of other factors, which Pete also alludes to, ie its based on a number of factors - volume, type, risk factors. Risk based pricing is key and why you cant compare one business with another, only one provider with another for your OWN business, so its worth shopping around and for making sure you consider ALL the costs before making a decision. Lower monthly rental might be good for some, but then they can be battered by the %, so dont be rushed into anything, work out what is going to be the best for your business. Plus keep reviewing it as the nature of your business changes.
What you also need to factor in is how long the payment takes to get to your main Bank account from the day the card payment is taken. Some provide next day, others can take days (ive seen payments taking a week before now!!), thats clearly a crucial cashflow issue (and one which could cost you dearly if you are in an overdrawn position!). Plus consider any security that needs to be given (cash cover etc).
Also - just a thought Ive had recently - what happens if there is no access to the internet? Ie what are the contingency processes. Only asking as I was at a clients recently when the power went off and was off for HOURS after some numbskull cut through some electricity supply cables a couple of miles away. Doesnt happen often, but when you cant take payments then it a crucial issue all of a sudden.
-- Edited by Cheshire on Friday 5th of August 2016 01:08:15 PM
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
