I was wondering what method of payment is best for a small business. I know that with credit card payments the credit card companys like Visa,MC, Amex charge an interest which you have to pay depending on how many transactions you process. Would the same apply for a virtual business?
What methods of payment do you accept? Is it better to use paypal or have check sent?
Hi Julia, I think the answer to this question varies greatly among other VAs but I'll tell you that we accept PayPal only with the exception of checks from clients with an excellent payment history for invoices over $2000.
You can accept credit cards via PayPal and it's very easy to use, there is a fee for accepting funds through PayPal though, credit card based or otherwise. I still think it's much cheaper than setting up an actual credit card gateway for a business as small as ours. The setup fees alone can be daunting. Just my two cents.
I think if you read back through the archives of this section you'll find a few older threads on the subject too.
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I just billed my first client on my own and I used paypal set up with an ING Direct account. It was pretty easy to do. The fees add up but the convenience and ease is worth it. I'm only going to take paypal. It's nice that clients don't need to have paypal accounts in order to make payments.
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Hi Julia,
I accept Paypal and have 2 clients pay me by personal check.
I've heard horror stories about Paypal but I haven't had any problems. Do a search on here and you'll find quite a few threads on Paypal.
I've also heard Paypal's credit card fees are very reasonable. I've never priced any other merchant so I personally couldn't verify that.
I use PayPal for new client relationships and for those clients where is it more convenient to pay by credit card. I also accept check payments. Work begins when I receive payment.
I accept payments via PayPal currently and that's only because of the fast turnaround from invoicing to payment from my clients and the convenience since I have a debit card attached to my PayPal account. The small fees don't cause a problem since I haven't billed out huge amounts (yet). I would be leary of accepting checks unless they are cashier's checks. Money orders are always fine too.
The cool thing about PayPal as opposed to a normal credit card machine through a bank is that you don't pay for a machine, or the monthly service to use the machine, etc. With PayPal, it's a use it when you need it service and they don't charge you fees when you don't accept at least xx dollars per month (some companies it's 20, some it's 200 or more). I know, they do charge you fees per transaction, but only on credit cards. You can also accept bank transfers and E-checks for free through PayPal (no fees). Check it out!
Method of Payment
Re: Method of Payment
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