Big ol' noob question here. So I've started my VA business. I'll be accepting cheack, naturally, but what other methods of payment are viable? I've been reading some Paypal horror stories - have they improved any lately, or are people still getting locked out left & right?

What are Paypal alternatives? I'm thinking I'll have mostly local customers who will want to pay by check, but there may be some that prefer online payment. Any suggestions?

And really dumb question here - I have not yet set up a business bank account. I'm supposing I need a business savings & checking account, and also a business credit card?

I tend to do things a bit backwards - just looking to get straightened out and caught up!

Thanks!

__________________
Lori http://www.solterravs.com

I have used Paypal most exclusively, with the exception of one client who pays me direct deposit and I have had no problem.

One thing to keep in mind when dealing with clients who pay with checks, if you are working as a "one time job" case I would request a cashiers check or money order for my services. There is always the chance that the check can bounce and this is not the case with cashiers checks and money orders because they are already collected funds. The only other option would be to require check payments from local customer who you can go into their branch and either cash the check outright or exchange the check for a cashiers check at the issuing bank. Remember, if the check is made out to your business name the issuing bank will require that you show proof of business ownership to negotiate the check at all.

__________________
Kristina ~Success Office Solutions
Our Solutions Equal Your Success!

Originally Posted by Loreli

I'm supposing I need a business savings & checking account, and also a business credit card? !

Yep, definitely business checking - the others can wait...

And I, too, use PayPal with no problems to date.

__________________
Lily Chambers, The Virtual Office Goddess, LLC
Author "How to Do Your Own Small Business Bookkeeping"

Hi Lori,

I would agree with kristina about the one job only cheque payments.
Although I haven't got my VA business up and running yet, I have worked as a freelance proofreader for 18 months and used Paypal for almost all my clients and never had a problem with it. The other method I use is direct BACS transfer into my business account - I am with a bank that doesn't charge to make or accpet any payments, so I have no fees with it.

__________________
Claire Baber ~ Horizon Virtual Assistance

My preferred method is PayPal (fast for both my clients and myself), but I'll take a personal or business check with the understanding that funds need to clear before any work is done.

__________________
Tony Thomas - Social Media
Download Your Free Copy of Market Samurai

I collect via business check for all of my clients but two who are from Canada so it is easier to use Paypal. Although, all but one are retainer clients so they are one month prepaid.

__________________
Lee Drozak
My Office Assistant

I've used PayPal with no problems and probably have about half my clients pay me via PayPal and half by check. I've never had a check bounce or had any other check cashing problems.

Another option to be to use Google Checkout. It works a lot like PayPal with similar fee structure.

Yes, you need to get at least a business checking account. The savings account and business credit card can wait until later. It's very important to keep you business payments separate from your personal checking account. If you get a business checking account at the same bank as your personal checking, then you can probably set it up online to be able to do electronic transfers between the two.

__________________
Kimberly
Facebook Marketing Magic!

I have used PayPal for years and I have never had issues with it. Of course you know that I am new here to, but I am also planning on accepting money orders, a cashier check would work to. I think PayPal is a great way to handle it though, and many people are already set up on PayPal.

__________________
Rhonda Holscher, Owner
Rhonda's Virtual Office - Hire a Virtual Assistant

Whew! Glad to see a lot of agreement here on what direction to go in!

Good idea about the cashier's check for a one-off job. And for regular checks - about going into the issuing bank to cash it or get a cashier's check - how do I prove I'm the business owner? This is stuff I hadn't thought of before (as if I was going to get paid in buttons or some other non-negotiable fund!)

And uh...what's a BAC?

I guess if I use Paypal, I need to set up a merchant account with them? Is everyone using the "Invoice with online payment" option? What if the customer doesn't have Paypal? Do they need to set up an account?

I already know I'll be forgetting things and making mistakes - I'm just trying to make sure the mistakes won't be too outrageously stupid - OR expensive!

Another dopey question - what should I be asking banks about setting up a business account? Is there something MOST important I should ask them? Or should I start a separate post for that?

Sorry to be coming off as such a dunce - but my personal banking involves a savings account and a checking account. No ATM card, no debit card, no online banking - if I want to either withdraw or deposit money, I have to haul my butt down to the bank and do it in person. Very old school, but it makes me stick to a budget.

__________________
Lori http://www.solterravs.com

Lori - I've seen some good posts on this site so I've been doing some research on local banks. I plan to open a checking account this weekend and link it to a paypal account. I agree with the others to only accept cashier's or certified checks. Best of luck to you.

__________________
Sandy
www.eliteadminforyou.com

Hi Lori,

I've heard plenty of PayPal horror stories, too, but I've never had a single problem with it myself. I do get the occasional check, but I much prefer PayPal. It's immediate, easy, and lets me avoid having to take on the expense of accepting credit cards myself. I've heard complaints about the fees, too, but in my estimation they are far more than reasonable for the benefit you get in return.

You have several options for what type of system to use with PayPal. You can have the most basic set-up, using nothing but a bank account number and some contact info, or go whole-hog with online invoicing, automated payments, subscription plans, etc. Plenty of flexibility.

No, customers don't have to already have a PayPal account to use it. They just pick the option for "Send Money," fill in their credit card or bank info, enter your email address and amount, and click. It's done. (There is a 3-4 day approval delay for NEW customers who've never made a PayPal payment before, or returning customers who are using a new credit card for the first time, but after that, payments are instant.) You can also have it set up where your actual invoices bear a PayPal link and the customer only has to click without even filling in your address and amount, but that's an option, not a requirement. I just send my invoice and give my PayPal email address in the message. Simple enough.

For a "real" bank, I highly recommend BB&T if you have one in your area. Their free business checking account has everything a small solo business needs and was a breeze to set up and use. Every time I've had a question, the staff has been fantastic. Online accessibility is available if you want it, no associated savings account is required (though you can have one if you want), and it comes with a debit card, so you can avoid going through the hassle and fees of a business credit card also. And it truly is FREE--no standard fees whatsoever unless penalties are required (overdrafts, etc.).

Have you gotten an EIN? If not, you may want to have your business account with a whole separate BANK from your personal one, not just a separate account, because some banks including BB&T use your EIN or social security number as your controlling identifier. I wanted to enable online banking for my business account only (which I intentionally keep "poor" because I'm convinced there's a thieving hacker around every corner). It is set up under my EIN. Had I set it up under my SSN, all of our personal accounts that bear my SSN would have become accessible online also. Not a big deal at all if you're not using online services, but something you might want to keep in mind if you do.

And by the way, I don't think a single one of your questions is stupid. Better to ask beforehand than to find out the hard way--and that's SMART.

__________________
AnnaLisa Michalski, Sunny Words Writing Services

AnnaLisa, thanks for all the great information! I didn't realize BB&T had free business checking. I've been banking with First Market (do you have those in Portsmouth?). They're merging with Union Bank and are supposed to be keeping the free small business checking, but I think I'll check into what BB&T has as well, just in case!

I like being able to put the PayPal link on invoices, but I'd rather keep doing my own invoices rather than invoice through PP, which it looks like you have to do to get the PP link on the invoice (or in the email). And I didn't realize this before, but if you just tell your client your e-mail--like you do--they can still pay you without having a PP account, right? And if you e-mail the invoice, you could just put the link https://cms.paypal.com/us/cgi-bin/?c..._us/send_money in your e-mail with the attached invoice, right? (My main reason for looking into something like PP is in order to accept credit cards.)

(Question...how do you insert a link into a forum post but just have a word like "here" that you click on, that that's the link rather than having the whole actual link posted like above?)

Thanks!!

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

Woo! Really good info here! I looked into BT&T - sounds great, so naturally there aren't any in this area. I'm outside of Philly, and the nearest branches seem to be in MD. Hate to drive 90 miles to deal with a bank! Was hoping there was a branch maybe in DE - that would have worked well. But at least I know what to be looking for in a bank.

Yes, I do have an EIN becasue I did read in other forums about otherwise using your SSN for an identifier - nope, not for me thanks! Online banking and a debit card will be a new experience for me - never used either. Exciting times we live in!! You and me both worrying about some thieving hacker drainging a bank acccount. As if holding onto money isn't already hard enough without their help.

Okey-dokey - thanks loads for all the good info. I did have it in mind to use a different bank for my business account, just so I will be sure NOT to mix up the funds and accounts. I think that will be my Monday project - start hitting the local banks and asking questions! Preferable one that hasn't been bought and sold ten times in the last three years - but I might be dreaming when it coems to that. I've had my personal account with the same bank for decades and decades - and in the last 10 years they've changed names 4 times. Makes ya wonder just WHERE your money really is, doesn't it?

Thanks kindly for all the great info, AnnaLisa!

__________________
Lori http://www.solterravs.com

You could look for a family owned or "smaller" state chartered bank with a good stability. Make sure to inquire about SMALL business banking to stay away from fees. It might make sense to work solely out of a small checking account or savings account at first. You can get an ATM card with a saving account. Just make sure to keep any receipts for tax time!

__________________
Kristina ~Success Office Solutions
Our Solutions Equal Your Success!

hi
I know paypal may have a history but what about intuit. they now have merchant services for less than $15.00 a month. check them out before you commit. they also have a lot of other services, some even for free.

__________________
Neasie Jackson