Accepting Credit Cards

[Ken Melton]

I just added PayPal to my website. Now its easier for me to get money for my inspections, especially from out of town clients.It gives me the ability to accept payments online with all the major credit cards with NO MONTHLY FEE. Transaction charge is 2.9% + $0.30. I have the option of leaving the money in my PayPal bank account or transferring the money to my bank. I also got a PayPal Debit Master Card that pays me back 1% on purchases. So, if I leave the money in my PayPal account and use the card, it essentially brings my transaction fees to 1.9% + $0.30. I get a small referral fee for those that sign on. Heres the link for those that are interested: https://www.paypal.com/us/mrb/pal=WAHB68M2ADHXS

[Terence McCann]

Interesting. I belong to PayPal but always thought of it as an Ebay thing.

[DonTx]

We have a PayPal merchant account. If our account totals over 10k per month, our fees are 2.2% + .30 per transaction.

Ken, nice move with the affiliate link!

[Bain]

I have a PayPal merchant account, as well. And its much less expensive than going through a regular bank. You can also earn nearly 5% interest by keeping your funds in what they call their "money market" account.

[Jim Katen]

I've been accepting PayPal payments from customers for years. It's very slick and the younger customers love it. (The old one's don't trust the "Inter-net".)

I like the money market account. It's a nice place to keep a bit of spare cash. Plus it fuels my evil-bay habit.

- Jim Katen, Oregon

[homnspector]

That "WAHB68M2ADHXS" on the web address gives Ken a kickback when somebody signs up. That is why he has also posted on inspectionnews.com

[Ken Melton]

"That "WAHB68M2ADHXS" on the web address gives Ken a kickback when somebody signs up. That is why he has also posted on inspectionnews.com"

I signed up for PayPal because I had no means to accept any form of payment other than cash or check. I also serve out of town buyers that need to pay me before I do inspections for them. I am pleased to have that ability now. A few days later, PayPal sent me an email and they said that they would pay me an incentive for referrals. So, I looked at a few websites from other inspection companies to see if they had the capability of taking online payments. There were just a few. So I decided to post on the buletin boards so that others who would also like the opportunity to take payments online could do so. If a few people sign on because they like the service, do you really think they care if I get a small fee. It's not coming out of their pocket. So tell me what the real problem is!

[homnspector]

I don't have a problem with you getting a referral fee, just be above board about it.

[Les]

making a little change is fine with me, but I am with Fritz. Reminds me of Home Warranties sold by agents at the closing table.

[Ken Melton]

"making a little change is fine with me, but I am with Fritz. Reminds me of Home Warranties sold by agents at the closing table"

Thats hitting below the belt. First of all, PayPal is a viable product. Just read the positive remarks throughout this post. Secondly, most home warranties are a POS. Lastly, you compared me to a real estate agent. YUK! Just out of curiosity, do either one of you guys see any benefit in PayPal for a guy that would like to accept other forms of payment? I would say many do. I never meant any harm so I have edited my origional post to state I get a referral fee. I apologize to any that I may have offended.

[homnspector]

Ken, no offense intended or taken. I think it is a great resource, setting up a merchant account at a bank is a in the a$$. I also don't have any problem with giving a fellow home inspector a referral fee.

[Les]

no harm no foul. Sorry you took it as being called an "agent"

[Scottpat]

Does anyone use the plan offered by Costco? It is better than what I now have. Monthly statement fee of $4.95 and then 1.64% or 1.99% and .20 or .27 per transaction.

[homnspector]

Scott, I have my merchant account through Costco. I haven't had any problems with it. It still gets expensive but about 95% of my payments are with credit card. I have the client secure the appointment with a credit card and they usually just opt to pay that way. American Express takes the biggest percentage.

[johnmcda]

Sam's club also offers a merchant account that I have used for a couple of years. About the same as Costco. AMEX hits you in the shorts.

[Mark P]

I know this is an old thread.

I'm looking at how to accept credit cards. I want to add a "pay by credit card" thingie to my website. I've looked at the pay pal site and it seems fine. My question for those that have a paypal merchant account is: can your customers enter any payment amount or do they have to select from a preset amount / menue? Because fees vary a lot depending xyz.

There is no Costco around here and I don't care to join sams club. What other options are there for accepting credit cards that you recommend or don't recommend.

Thanks

[Tom Raymond]

Mark,

You can set up a merchant account with your local bank or there are tons of brokers/clearing houses out there who will have more competative rates, ask your favorite Mom & Pop Shop who they use. If the paypal rates are still the same as these old posts then they'll be about the best deal out there. If you choose to go through a broker stick with Visa & MasterCard and your fees will stay low, Discover and Amex take big chunks of your money. The last time I accepted Discover (8 or 9 years ago) there was a $15 fee if I didn't have any transactions or $5 statement fee plus 5%, last I knew Amex was between 7 & 8%.

Tom

[Jim Katen]

I know this is an old thread.

I'm looking at how to accept credit cards. I want to add a "pay by credit card" thingie to my website. I've looked at the pay pal site and it seems fine. My question for those that have a paypal merchant account is: can your customers enter any payment amount or do they have to select from a preset amount / menue? Because fees vary a lot depending xyz.

There is no Costco around here and I don't care to join sams club. What other options are there for accepting credit cards that you recommend or don't recommend.

Thanks

Paypal is still the best deal out there for someone who only has a few transactions per month. If one of my customers wants to pay with Paypal, I send him a Paypal invoice for the exact amount.

- Jim Katen, Oregon

[Chris Bernhardt]

I'm set up with an ARU account where I can process CC's over my cell phone. It's 2.8% and a $1 per transaction with a $5 a month maintenance fee.

I tried paypal, but it's a hassle in my opinion. If a client shows up at the inspection without a checkbook, I can process his CC on the spot. I don't have to go back to the office, send him an email and hope he'll take the time to respond. As far as I'm concerned, paypal is the same as trying to get them to mail a check.

Chris, Oregon

[Bain]

I'm set up with an ARU account where I can process CC's over my cell phone. It's 2.8% and a $1 per transaction with a $5 a month maintenance fee.

I tried paypal, but it's a hassle in my opinion. If a client shows up at the inspection without a checkbook, I can process his CC on the spot. I don't have to go back to the office, send him an email and hope he'll take the time to respond. As far as I'm concerned, paypal is the same as trying to get them to mail a check.

Chris, Oregon

I think maybe they've changed the set-up since you were signed on. Now, there's something called Virtual Terminal that allows you to enter the info into your computer on-site and get instant confirmation that the funds have been transferred.

The primary negative is that the monthly fee has risen from twenty bucks to thirty. Still though, it's a small price to pay to eliminate keeping up with, and collecting from, the peeps who conveniently or not so conveniently forget their checkbooks.

[Terence McCann]

I use Monires Solutions which is an ASHI affiliate (FWIW). Pretty simple, call the 800 number and follow the prompts. You get instant verification on the payment being processed. It's only MC or VISA.

There have been numerous times when the client has forgotten their check book but still carry the plastic. Goes along with my "no accounts receivables" policy.

[Inspectorjoe]

Mark:

Today I started the process to open a merchant account with FirstData, through BJ's Wholesale Club. The rep never asked if I was a BJ's member. I wasn't able to finish the application process because I had to leave for an inspection. It was the best deal I found.

Data entry is done on a computer through a 'virtual terminal' which costs $15 per month. There's a $99 gateway setup fee and a $25 monthly minimum charge. Their cut is 2.12% + $0.25 per transaction.

There's a great primer on merchant accounts here