accepting credit cards

[superman]

Does anyone have a company to suggest on accepting credit cards. I have never accepted them before but I think this year I may need to. I am hopefully looking for a web based service that does not require the purchase of their machine. This may be vital for alot of us this year with the economy the way it is right now.

[Nashville]

No Credit Cards

I don't fool with credit cards and thus should probably not even answer Superman's question.

What few destitute clients I have seem to always have big refunds. I hold their check until I know the refund has been deposited and then quickly deposit their checks.

Superman, organizations such as NAEA and NATP are always negotiating commercial discounts with various companies. You might check with them.

[erchess]

Know that the refund has been deposited

Do you actually know that the refund has been deposited (there was no hold put on things) or do you only know that the theoretical due date for the refund based on when it was accepted has come? Reason I ask is that I only know the latter and never the former and I seem to have a lot of clients who come to me for additional help because things have been held up.

[Nashville]

Use the ACK

Fortunately my clients in this destitute state are only a handful, maybe a half dozen or so, and I advise them when their refund is coming, and inform them I will be depositing their check on that day. I don't give them an option - if they want more than this I send them to HRB or JH where they can pay outrageous fees but have their bad finance habits covered by having this simply come out of their RAL check.

Some of them get up and leave anyway when they find out I don't offer RALs.

[JohnH]

I've often wondered what would be the best response when someone asks about RAL's. So far all I've come up with is "I don't offer RAL's, but if you're really that intent on throwing your money away, I'll be glad to charge you just as much as the RAL providers do." That conveys the point, but somehow they usually don't get it.

[MLINDER42]

Ral Answer

I do many bank products at one of my offices none at the other one.They can pay $75.00 cash or credit card or $300 for a Ral and they still want the bank product.It feels good when I talk them out of a bank product. I have about 200 clients that I have done that to over the years.They have finally seen the light and come back each year and pay.

[Burke]

Does anyone have a company to suggest on accepting credit cards. I have never accepted them before but I think this year I may need to. I am hopefully looking for a web based service that does not require the purchase of their machine. This may be vital for alot of us this year with the economy the way it is right now.

There was a thread on this on another board. Someone mentioned Community Card Services Inc. through Exchange Bank. 1-800-487-5577. Michelle Filicky or Debbie Carlisle. No monthly minimum, no software or cc machine to purchase. This is a phone-in service. I do not offer credit card payments, and I have had no experience with them so cannot do anything other than pass this info along.

[taxmandan]

We accept cc/debit cards, anything to help the client pay my bill (~$16k this year in fees). I signed on with my local bank, they agreed to match the discount rate and costs offered by COSTCO merchant services. They even waived the minimum monthly fee for use ($20) since I don't have much outside of tax season. Negotiate with them, it is a highly competitive market and you can do better then their initial offer to you.

You might check with COSTCO, they have the lowest fees I've found. If you don't swipe a card, ie do things on-line, the fees are substanitally higher. As for the machine, I bought one on E-bay for $188, three years ago and it works just fine. DON'T lease a machine, the costs is outrageous!

[S T]

For What is is Worth

Costco Merchant service, we bought the machine for my husband's business, and then found out it was outdated after 2 years and we had to upgrade, another charge, we did not swipe cards, we key entered the credit card info as he was in the field with no access. Fortunately about that same time he was selling the business, so I just canceled the merchant account.

I also found out after using Costco Merchant services, that there is no support on disputed charges whatsoever, the consumer is always right, no matter what backup data you provide as a merchant. And, the fees continually increased after the first couple of years.

So I did not have a good experience with the Costco Merchant Services!

I have not used for my Tax Business!

Sandy

[Lion]

All Major Credit Cards

I accept all major credit cards. I like it. I don't have to make a trip to the bank when a client pays via credit card. I can take the card information over the telephone and then mail them their return copy or their kid can pick it up or whatever the client choses. The fees aren't bad and sure beat having to chase a client who bounced a check or wait until they remember to mail me a check or... I use QuickBooks and have been happy with their service.

[taxea]

accepting credit cards

I wouldn't accept credit cards...tooooo much hassle and cost.

I send client their copy of return, which I don't sign, and tell them it will be elf'd when their check clears the bank. I think I have experienced 2 NSF checks in the past 10 years.

However, once I get a NSF check I require the client to pay by money order or cashiers check to replace the NSF check, with added bank fees, and for all future returns.

For first year clients I require a retainer. If they are responsible about getting documents, etc, to me I don't require the retainer when they return the following year.

I do intend to look into the Google payment procedure...it sounds interesting.taxea

[Lion]

No Hassle

There's no hassle. Type in the number. Faster than filling out a deposit ticket for the bank. And waaay faster than driving to the bank. And certainly faster than waiting for the check to actually clear the bank, because you get the card approval immediately.

It costs. AmEx a bit more than MasterCard, Visa, and Discover, that QB handles directly. But, you could give a discount for cash or build it into your fees the same way you include the cost of your paper and toner.

I just want to make it as easy as possible for my clients to pay me right now. Taking all major credit cards seems to do that. I have clients say they don't have their checkbooks. Well... And, the client adds air miles or cash back or whatever his card bonus is.

[lenboush]

My 2 cents worth

I wouldn't accept credit cards...tooooo much hassle and cost.

I send client their copy of return, which I don't sign, and tell them it will be elf'd when their check clears the bank. I think I have experienced 2 NSF checks in the past 10 years.

However, once I get a NSF check I require the client to pay by money order or cashiers check to replace the NSF check, with added bank fees, and for all future returns.

For first year clients I require a retainer. If they are responsible about getting documents, etc, to me I don't require the retainer when they return the following year.

I do intend to look into the Google payment procedure...it sounds interesting.taxea

While I certainly agree that cost is a legitimate issue, credit cards are far less hassle than checks and no more hassle than cash.

I do spend close to $1000 per year for credit card fees, but I feel like it is worth it for several reasons.

Foremost, I am providing a service to my clients. Sure they could come up with the cash or write a check but, if they're like me, I almost never carry any cash and I definitely NEVER carry a checkbook. I've stopped going to restaurants who don't accept credit cards for those reasons. On occasion I have forgotten a local restaurant doesn't accept cards and had to leave simply because I had no cash and no checkbook. When I started thinking that way myself was when I got to wondering about how my clients might be thinking about me. Credit and debit cards have pretty much become the universal payment method in a very short number of years.

Furthermore, there are some benefits. No bounced checks. Less cash laying around to tempt thieves. It even improves the look of a small business. It makes it seem more like they are serious about being in business and thereby lends just a small tad of credibility to some clients. Credit card issuers insist that accepting credit cards increases your business. I seriously question how much but I suspect it does happen.

I definitely would rather accept a credit card than make a client take out a RAL or some other back product. I'd also rather accept a credit card than a post dated check.

I'm at the point where I am almost heading in the opposite direction. Instead of giving a discount for cash, my experience has been so positive, I think I'd just as soon give a discount to a client using a credit card.

You probably already have already heard this, but, In regard to tying a discount to cash over credit cards, most credit card issuers do not allow that. When you sign their agreement, you agree to charge credit car payers the same price as cash payers.

[Lion]

Gas Stations?

What are all those gas stations doing, in very small print, saying that low price they're posting is for cash only?! I too carry very little cash, no checks, and have left a gas line or two when I was close enough to read the fine print about cash and what the price would be for credit. I then go to a station with the same price for cash or credit, so I treat my clients the same way.

Good point about checking with the agreement before making a change in pricing policy.

[DTS]

CC through QB

I signed up late Friday and got approval midday on Monday to be able to take CC's in QB.

Did a $1 test (using my mother's money, of course!). Works like a dream. Monthly cost is $9.95, which is waived for 3 months, 2.20-3.20% of sale and .23 cents per transaction. Batch reporting at the end of the day is done on QB's end, nothing else to do. Very inexpensive compared to what I paid years ago.