Hello, VAF Forum

I am wondering does everyone use a separate checking account for your business? Has anyone considered using a prepaid debit card? I was just curious about that. Because most banks you have to have at $100 to open account. Whereas a prepaid debit card you can open with any amount. I that prepaid debit card can be used with Paypal and they offer direct deposit.

Does anyone have any feedback about this. Thanks in advance for your feedback.

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Regeana Crumer
Ms. G's Office Solutions

Hi Raeeana,

When I first looked for a business checking account when I opened my business, my personal banks required a minimum balance which I wasn't able to maintain at the time.

So I opened up an Ingdirect.com for my business account. With that account comes a debit card with no minimum balance requirement. I even earn a little interest on the account. Transferring money out of the Ing account to pay an individual is done for no charge via email. In the years I have used Ingdirect.com I have never incurred any additional fees.

I always expected that I would eventually open up a regular merchant account at my local bank when my earnings increased but I never found a reason to do this. All exchange of monies have been electronic.

When a client pays me using PayPal, I transfer the money to my Ingdirect account so I don't use a prepaid card. When I want to use the money from the Ingdirect account I use my debit card which Ing sends when the account is open or I can also use the bill pay feature to pay a vendor. If I want cash from the Ing account, I use a local ATM machine at no charge.

Janine

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Regeanna,

I have a small business checking account that has no minimum balance. I am allowed up to 150 transactions per month. I try to use PayPal as much as possible when sending payments for expense items. This helps me stay under the transactions limit.

I would try to find a local bank who offers the same type of deal. Janine's option is a good one too and I have used ING in the past, they are a good alternative to brick and mortar banking.

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Lee Drozak
My Office Assistant

As a bookeeper, I would advise you to use a checking account, but using a debit card will work also. The most important thing is to NOT use you personal checking account for business expenses. You should always keep business seperate from personal stuff. Whatever you choose, debit card or checking account, use only that for business expenses! Don't mix use between personal and business accounts.
Lee made a good point, in my area we also have banks that offer no minimum balance and a free dibit card. Check around, there may be one in your area too. It's worth the time because you will need a checking account when your business grows and grows and grows.... LOL. Good luck

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Pamela J Erb, Owner
Common Cents Bookkeeping

Have you checked out your local credit unions? My local one offers a basic but free, non-divided bearing business checking account with no monthly fee and unlimited transactions.

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Linda
Clockwise Virtual Assistance

I set up an e-checking account for my business that I have linked to my regular checking and savings account. It came with a debit card and I can transfer to my other accounts and it does not require a monthly minimum or fees. I do have limited transactions per month. However, I just transfer the funds to my other accounts to minimize my monthly transactions.

I have a small business checking account at a local bank. I've never paid a fee and there's no minimum balance. I also have a debit card with that account. If there is a monthly transaction limit, I've never exceeded it because I've never been charged a fee. Although I do have a personal account at a credit union due to past state employment, they do not allow business checking accounts.

Since 99% of my client payments are by check I feel I have to have a business checking account. I also have a personal account at the same bank and just transfer money from the business to the personal account, leaving only enough in the business account to pay business expenses, quarterly taxes, etc.

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Pam Deyerle - Transcriptionist in the Richmond, Virginia area
The Perfect Word Transcription Services

This is all great information thank you very much!

Janine,
I have heard of ING but never tried them....one quick question, do any of your clients pay by check? And if so, how would you cash it?

Hello AKH,

I don't advertise that I accept checks so no one has ever asked me if they can send a check for payment. I just haven't wanted to wait for a check to clear or
the possibility of a check bouncing.

Since PayPal doesn't require the sender to have a PayPal account, I have always used PayPal.

No one has ever questioned it or asked for payment any other way so I only use what is most convenient, which is PayPal.

However, if I had a check that needs to be deposited in my Ing account I would just use the ATM to make the deposit.

Better yet, I have clients who have an Ing account, so they just transfer money right into my account at no charge.

Janine

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