Question
Best rate for accepting credit cards?
I own a catering business and would like to take credit cards over the phone or online only-- Does anyone know what would be cheapest? I would not need a card reader nor would I need anything super-fast. Something online like paypal would be fine...
10 months ago - 0 answers
Best Answer
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The real question is going to be how much volume you do monthly. If you are going to do less than $1000 a month paypal would work great for you. However if you do more than $1000 a month you would be better off with a merchant account.The reason is Paypal is double the cost of an actually merchant account when it comes to fees. Accepting credit cards revolves around % amounts. So lets say you do paypal $1000.00 with paypal and you have a total of 5 transactions you would pay $6.10 per transaction, or $30.50 for the $1000.00 you took in. On a merchant service account for the same $1000.00 you would be at $28.30. That is why $1000 is your break even point. Once you get into the 2000-3000 range you will pay double on Paypal vs a merchant account. The other factor you stated is you want to take cards over the phone or internet. I know this is easier however it will cost more than if you had a terminal. The credit card industry is all about risk. The more risk the higher the cost. This is why Paypal is double the cost of a merchant account because it is all web based(more risk). Being in the industry myself I would recommend having a terminal(maybe). You would service your clients, get their credit card info and run the transaction when you get home/work. However since I do not know how you run your business this may not be an option and I would recommend something different depending on your situation. If you are concerned about cost of the terminal, many companies out there offer free terminals. The last thing i want to mention is the human factor. Some people believe if you ask them to pay via PayPal you are not a real business. This is something you have to take into effect. You know your clients better than I do and this may be an issue or may not. Hoped this help.
10 months ago
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Other Answers
Contact the bank you do business with..They would be happy to have you as a business customer accepting credit cards..Banks make good money that way..
by Danny- 10 months ago
I set up our HOA through PayPal. You must have a web site to use it, however you don't have to invest in a machine, there is no monthly cost and no merchant account with fees. There is a simple percentage deducted from a each payment so you only pay for it when you use it.
by R T- 10 months ago