Any thoughts on credit card processors?

[mbigelow]

Hi, hope everyone had a great tax season. I'm looking into accepting debit/credit cards and my research has produced a huge world of possibilities. I don't need a POS type system, as I have very few in-person payments. I'm concerned about fees to me, of course, but also the security of the system. Any thoughts/recommendations/experiences you can share? Thank you.

[Twin Turbo Z]

We started accepting a credit/debit cards a couple years ago. We looked at "Square" and "PayPal" and decided on "PayPal". The rates are comparable, but PayPal is accepted online just about everywhere. Plus you get a free card reader that plugs into the headphone jack on a smart phone. You can either process payments via your PC or a smart phone. We did get a "Chip Reader" also from PayPal which costs $78 and it works via a "Bluetooth" connection with a phone. All three processing choices work great.

[Lion]

If you already use bookkeeping software to keep your own books, see if they process CCs and download info automatically to your software. QB does this. If you're a ProAdvisor, you don't pay monthly fees, just the fees for each transaction. I have their free swiper for my iPhone, but seldom use it; because it's faster for me to just type the client's CC# right inside QB to process the payment.

Check the bank where you have your business account.

Ask in your local network.

As you say, for a few transactions, security and customer support are probably important, so start with local options or companies (QB, your bank, etc.) that you already deal with.

One client found a national processor with the lowest prices for her biz that takes lots of CCs over the phone for deposits (small inn), but she says she gets dreadful customer service. So, you do have to choose based on your own priorities.

[Rapid Robert]

I agree Paypal is a great way to go. I hate the 2.9% fee but it's hard to get better for small volume. Most of my clients pay using Intuit Quickbooks payments, which is a bank debit that costs me only fifty cents no matter the amount.

An important point, since you mention security, is that I do NOT want to handle the client's payment info in any way shape or form. For both methods of payment (Paypal or Intuit) I send the client a link, and THEY have to enter their account info, not me. They do not have to create a login, but they can if they want. Even if I already have their bank info in the tax return, I would never enter it myself for my fee payment.

[DTS]

Cards

I use Drake Software and this year we were offered a per transaction fee (no monthly fees) choice through EPS Financial. Very nice for me. 2.95%

[ttbtaxes]

Just be sure however you accept and process credit cards that you are PCI compliant. Penalties for failure to be so can range from $5,000 to $100,000 per month.

https://www.pcicomplianceguide.org/pci-faqs-2/#14

It can turn ugly very quickly if you mess up here. As far as I am concerned, it is just not worth accepting credit cards.

[Rapid Robert]

Just be sure however you accept and process credit cards that you are PCI compliant.[...]As far as I am concerned, it is just not worth accepting credit cards.

See comment above about PayPal. Your clients can pay you with a credit card, without you ever handling the CC info in any way.

[taxmandan]

Square has worked for us

We've used Square since their inception and like the ease and convenience. They now have the ability to send a client an invoice just like PayPal does and the client inputs their card information for payment. Fully PCI compliant which was a big deal for me not to have to bother with annual compliance checks with our old processor. I send invoice through PayPal for a client's business on occasion and it works fine if the recipient is expecting it. Have had occasional issues where people thought they had to have a PayPal account in order to pay. That's not true but it does require some back and forth with them to get things done.