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!

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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.

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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.

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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.

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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.

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Tony Thomas - Social Media Professional
Social Media of Portland

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.

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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.

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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.

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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.

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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.

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Sandy