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To Take Credit Cards or Not...That Is The Question.
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Replies to This Discussion
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Permalink Reply by Stephanie Keffer on
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Lisa I think it depends on the volume of sales you get from credit cards. I have a paypal account and I take credit cards that way. In person I take down their information, I have several clients that pay before they come in and I have had people buy gift certificates off my website because of the paypal feature. I'm looking into getting Cellcharge before I do my big event this March. I would like the ability for them to book that day instead of booking after the fact and have the ability for those who forgot cash to use a debit card and be on their marry way.
Lisa said:ok...but just to play devil's advocate...can't you offer the same service by letting them pay with their credit card through to your paypal account? I'm wondering what the differences are between the two types of transactions. Both can utilize the client paying with a credit card. But one you are charged through the credit card companies to offer the service, the other you just open a free business account with paypal and the client logs on to paypal and pays using their credit card and your account. they don't even need a paypal account to do it.
pros? cons?
Betty Echols said:I took c/c in Fl 10 years ago and everybody used them.....and I do mean every transaction.
I moved back to GA and NOBODY IN A YEAR used the c/c. I was paying outrageous fees back then.
I have been in Atlanta now for 2 years and have had a few request for the c/c.
THE TWO BIG REASONS TO ACCEPT CC IS THIS:
1.. YOU CAN SELL MORE GIFT CERTIFICATES!!!!!!!!!!!!!!!!!!!!!
2.. PEOPLE WILL GET MORE MASSAGES IF THEY CAN CHARGE IT.
3.. YOU CAN ARRANGE ON SITE CHAIR MASSAGES FOR COMPANIES....THIS CAN RUN INTO SEVERAL HUNDREDS OF DOLLARS TO THOUSANDS.....WE DID ONE THAT WE TOOK IN $8000.00.
THEY ALWAYS WANT TO CHARGE IT....THEY DO NOT WANT TO HAVE TO ARRANGE FOR CHECKS TO BE CUT....BEEN THERE DONE THAT!
YOU JUST HAVE TO ACCEPT C/C
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Permalink Reply by Johnathan Womack on
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I think its just nice to offer another avenue for your clients to take. So many people are getting away from carrying cash. I mean, I dont really carry cash either. But I'm quick to pull out a CC or my debit card to take care of things. It offers the benefit to always having a receipt, and just plain convenient. So I would do it to give the option to use their card vs giving me there last 40-50 dollars. They can do cash, I would like a CC or a check any day.
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Permalink Reply by Christopher Vallo on
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Lisa,
I was suggesting the not using revolving credit cards but using debit, AmEx, PayPal (yes they actually have a real plastic debit card) and encouraging people to avoid interest and fee based credit cards.
Credit Cards
Pros - Broad acceptance, easy to set up, strong protections and legal applications
Cons - Large variation of fees and transaction costs
PayPal
Pros - Cheaper for you and the client (in most cases), can be used by people who provide goods and services on the internet thus have no net impact on their cash flow
Cons - Smaller user population, protections not as strong or well enforced, requires internet connectivity
Google just purchased a mobile phone financial transaction company - Zetawire - this is the future of transactions.
Keep an eye on that and what Apple decides to do next :)
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Permalink Reply by Stacey Barrett on
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I do not take credit cards because of the amount you pay...the percentage plus monthly plus yearly...refused to do it.
I take cash, debit & cheque (small town)
I am fully booked, have recently hired my 3rd RMT...and growing.
My answer to your question is NO it does not harm your bottom line.
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Permalink Reply by Amber Ginan LMT,EST on
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Just to put my 2 cents in...
I just recently opened my own studio and the issue of credit cards is a big one is todays society. So with a little research I chose PayPals Virtual terminal. I can just plug in my clients cc info and even email them a receipt or print one. No signature required, and I can take all cards...American Express and Discover. All you need is an account, get approval, link it to your bank account and of course a laptop/computer. No special equipment, and approval took less then 24 hours.
I am not sure if this is better or easier, but for right now it seems that way. With Paypal I can just pay from that account or transfer to my bank account. It works right now and that may change as I grow. But I think it is worth a look.
Plus I was also able to add a check out center so people could order gift certificates online too! That is at no extra cost. ;)
ALSO, the client DOES NOT need a paypal account. and Can pay at the time of service, just the same as if you swiped it.
~Amber
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Permalink Reply by Norm Green - My Receptionist on
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Amber,
What is the average percentage that you are paying on your revenue transacted with PayPay? Also, when a client buys a gift certificate on your web site using your PayPal option, when do you see their payment in your bank account? And, if the GC purchased for $100, how much of the $100 do you get after PayPal takes a percentage (I'm assuming that they are taking a percentage)?
Amber Ginan LMT,EST said:Just to put my 2 cents in...
I just recently opened my own studio and the issue of credit cards is a big one is todays society. So with a little research I chose PayPals Virtual terminal. I can just plug in my clients cc info and even email them a receipt or print one. No signature required, and I can take all cards...American Express and Discover. All you need is an account, get approval, link it to your bank account and of course a laptop/computer. No special equipment, and approval took less then 24 hours.
I am not sure if this is better or easier, but for right now it seems that way. With Paypal I can just pay from that account or transfer to my bank account. It works right now and that may change as I grow. But I think it is worth a look.
Plus I was also able to add a check out center so people could order gift certificates online too! That is at no extra cost. ;)
ALSO, the client DOES NOT need a paypal account. and Can pay at the time of service, just the same as if you swiped it.
~Amber
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Monthly sales up to 3000 have a 3.1% plus. 30 cents... so on 100 dollars you pay $3.40. When they pay the money is there right away in your paypal account. I tested it with my own card first, I saw it available in my paypal account right away and received an email notifying me that I received money.It takes about 2-3 days to transfer to your bank account if you need to do that. After you have been with paypal for 60 days you can apply for a debit card and use an ATM to retrieve your money as well. I have a personal account with paypal that I have had for about 10 years, but decided to open a seperate account just for my business.The more that is charged the less you can pay per transaction. Meaning above the 3000 in monthly sales. You can go to paypals site and click Business then Products & Services then scroll down to Virtual Terminal. I am sure the site can explain more then I can. Plus there is a video demo. And like I said I only just started using it, so down the road I might have to make a change. For now it works, it was easy, no crazy sales people tried to get me to buy stuff. A rep did call me and was super helpful answering questions and basically doing a follow up after I applied online.
Overall cash is best, but being able to make sure you can accept payment easy and quickly does help.
I hope that helped. :)
Norm Green - My Receptionist said:Amber,
What is the average percentage that you are paying on your revenue transacted with PayPay? Also, when a client buys a gift certificate on your web site using your PayPal option, when do you see their payment in your bank account? And, if the GC purchased for $100, how much of the $100 do you get after PayPal takes a percentage (I'm assuming that they are taking a percentage)?
Amber Ginan LMT,EST said:Just to put my 2 cents in...
I just recently opened my own studio and the issue of credit cards is a big one is todays society. So with a little research I chose PayPals Virtual terminal. I can just plug in my clients cc info and even email them a receipt or print one. No signature required, and I can take all cards...American Express and Discover. All you need is an account, get approval, link it to your bank account and of course a laptop/computer. No special equipment, and approval took less then 24 hours.
I am not sure if this is better or easier, but for right now it seems that way. With Paypal I can just pay from that account or transfer to my bank account. It works right now and that may change as I grow. But I think it is worth a look.
Plus I was also able to add a check out center so people could order gift certificates online too! That is at no extra cost. ;)
ALSO, the client DOES NOT need a paypal account. and Can pay at the time of service, just the same as if you swiped it.
~Amber
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Permalink Reply by Tonya Brooks-Taylor on
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I take all major CCs in my practice. I started taking cards within 4 months of opening my studio because most of my client's don't carry around cash and prefer to use credit or debit cards and checks. I also use an online booking and retail system so my clients can purchase gift certificates and retail items online.
I've recently (past 3-4 months) seen a big uptick in the purchase of gift certificates online by existing and new clients which is great. I use RBS WorldPay because that is what I was referred to by my business bank rep but if I had to do it over again I would definitely have gone with a cheaper provider such as PayPal.
I didn't used to charge for no show/no-call but after a few of those I made it a policy and have stuck to it. So now, if someone doesn't show up my online booking system is automatically set up to charge them a no show fee. I believe this is legally acceptable especially since I make them aware of my cancellation policy verbally when they book with me, and in writing through emailed newsletters, my website, and my online booking system. In addition my cancellation policy is included on my medical intake form that clients must sign off on prior to receiving treatment. I have seen much fewer no-shows and late cancellations since I started holding firm on my policy.
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Permalink Reply by LA on
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I do not take credit cards in my practice. No one has a problem by paying by check. I can say I may have only had 2-4 people ask me if I accept credit cards in the past 9 years. I think its a hassel! :)
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Hi Jody
I got really excited when I read your post about Square. It's exactly what I'm looking for. However, after a bit of research, I've realized it's NOT available in Canada, only in the 50 contiguous states. Too bad....... :-(
Christa P.
RMT, Ontario, Canada
Jody C. Hutchinson said:
I am waiting for a card reader from Square. It's a free app that works with the iPhone 3&4. It uses the headset port for the card swipe, then the client signs on the screen and it goes to your checking account. I think it's only 2-3% per transaction, only. I can't wait.
I have used Pay Pal with one client whose mother paid from out of state, it worked great. I agree with using the CC to hold an appointment. However, when I worked for a spa, the no-show customers would often complain that they didn't get the service and the CC company would refund the $. I imagine that even if it's posted the client could still raise a fit.
By the way, I purchased a book at a trade show and was overcharged for it. The CC company wouldn't do anything, saying that I had to read the slip, since I signed it-I was stuck. I was lucky that the publisher refunded the difference.
That being said, I still get very few CC requests.
jh
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Hi Amber,
That helped. Thank you. However, 2% is a more common rate when using a virtual payment processing method (keyed in transactions). If you are not running that much revenue... then paying 3.1% could be worth the convenience you are experiencing with PayPal.
Can you tell me more about how they reimburse you when you sell a GC their system? When a client buys a gift certificate on your web site using your PayPal option, when do you see their payment in your bank account?
I've heard that you don't see the money until the GC is redeemed. I find that hard to believe.
I look forward to your response.
Amber Ginan LMT,EST said:
Monthly sales up to 3000 have a 3.1% plus. 30 cents... so on 100 dollars you pay $3.40. When they pay the money is there right away in your paypal account. I tested it with my own card first, I saw it available in my paypal account right away and received an email notifying me that I received money.It takes about 2-3 days to transfer to your bank account if you need to do that. After you have been with paypal for 60 days you can apply for a debit card and use an ATM to retrieve your money as well. I have a personal account with paypal that I have had for about 10 years, but decided to open a seperate account just for my business.The more that is charged the less you can pay per transaction. Meaning above the 3000 in monthly sales. You can go to paypals site and click Business then Products & Services then scroll down to Virtual Terminal. I am sure the site can explain more then I can. Plus there is a video demo. And like I said I only just started using it, so down the road I might have to make a change. For now it works, it was easy, no crazy sales people tried to get me to buy stuff. A rep did call me and was super helpful answering questions and basically doing a follow up after I applied online.
Overall cash is best, but being able to make sure you can accept payment easy and quickly does help.
I hope that helped. :)
Norm Green - My Receptionist said:Amber,
What is the average percentage that you are paying on your revenue transacted with PayPay? Also, when a client buys a gift certificate on your web site using your PayPal option, when do you see their payment in your bank account? And, if the GC purchased for $100, how much of the $100 do you get after PayPal takes a percentage (I'm assuming that they are taking a percentage)?
Amber Ginan LMT,EST said:Just to put my 2 cents in...
I just recently opened my own studio and the issue of credit cards is a big one is todays society. So with a little research I chose PayPals Virtual terminal. I can just plug in my clients cc info and even email them a receipt or print one. No signature required, and I can take all cards...American Express and Discover. All you need is an account, get approval, link it to your bank account and of course a laptop/computer. No special equipment, and approval took less then 24 hours.
I am not sure if this is better or easier, but for right now it seems that way. With Paypal I can just pay from that account or transfer to my bank account. It works right now and that may change as I grow. But I think it is worth a look.
Plus I was also able to add a check out center so people could order gift certificates online too! That is at no extra cost. ;)
ALSO, the client DOES NOT need a paypal account. and Can pay at the time of service, just the same as if you swiped it.
~Amber
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Permalink Reply by Gregg Gonzales on
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My studio started taking credit cards about three months ago and it has made a huge impact since we made the transition. I was going solo in my private office for several years and never took credit cards but when I expanded this year I felt that having the addition of accepting cards was very important. Clients now do not hesitate to renew or prebook appointments and more importantly the selling of massage series has quadrupled. I'm totally fine with the charges we accrue from accepting cards but the overall profit has outweighed the small percentages. Plus, it is a huge convenience factor for my clients. However, I do not have a no-show, no-call policy in place and have no plans to do so since it really has not been an issue for me.
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