Accept credit cards through Quickbooks or Paypal virtual terminal????

Discussion in 'Business Operations' started by Grits, Dec 6, 2007.

  1. Grits

    Grits LawnSite Silver Member
    from Florida
    Posts: 2,994

    From the investigating I have done, it appears that accepting cards through Quickbooks is more simple than Paypal Virtual Terminal. Comments???
     
  2. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    I too have done some investigating on this matter. I use QB, so implementing a CC scheme would be easy. However, I am much more concerned about customer response. It could be easy for me, but prove to be a point of contention with existing customers.

    The PayPal scheme does not seem to lend itself to a way for me to make regular monthly charges. I do not have a web page, and much of the information on their web site is based upon having a web site with cart, etc. It looks like one plan (the most logical of what I was able to read) is to send a monthly invoice by e-mail, with a link to PayPal. The customer must activate the transaction, enter their CC information each time. The big selling point with PayPal is the customer does not have to give you their CC information, unlike the QB scheme.

    Under the QB scheme, their CC information is entered on my PC, held there, and used when a transaction is made. If a LCO was to ask me for my CC numbers, and I knew they were sitting on an unsecured PC, I too would be hesitant to fork over the information.

    Under the PayPal scheme, the CC information is guarded from the LCO.

    However, if the only way to activate a transaction on the part of the customer is to use the link provided on the e-mail invoice, they why would they do it more consistently than writing a check? In other words, writing a check is easier (and inserting into an enclosed envelope). Why would a customer be interested in changing over from check writing, to a PayPal approach? There is nothing for them to gain, but rather something for them to loose -- namely, gathering more charges on their CC account. Many of my customers are older, and probably don't use a CC account very much.

    Since we are on the PayPal question, I understand the plan puts their money from a CC transaction into some reservoir account. How does it get moved from that account to my back account? Do I periodically check the balance, and do an electronic transfer of monies? That is what I understand from reading the web site. Can somebody help out on this question, as well as the question of a regular transaction activated on my part, not the customer's part? Thanks.
     
  3. Scagguy

    Scagguy LawnSite Bronze Member
    Posts: 1,522

    Accepting CC's through Qiuckbooks is a lot easier than dealing with Paypal. If you have ever had a Pay Pal credit card, you know what I mean. Pay Pal's system is vastly inferior to many others that are available. You constantly have to move money from your Pay Pal account to your bank unless you want to try to use your Pay Pal credit card to make a cash withdrawal. Imo it's a joke. With Quickbooks, money is in your account withing 2 business days, sometimes sooner. Some good points have been raised concerning credit card security, my situation is a little different. All new customers have cc's on file with me or I don't service them. Got tired of doing the collection thing. I have a 100 or so customers that don't have cc's numbers on file with me. That's fine as long as they pay on time. If a customer runs 60 days late just once, I'll have a cc on file or drop them.
     
  4. GELAWNS

    GELAWNS LawnSite Member
    Posts: 66

    We chose the PayPal method and have been using it for about 6 months. We have a website and offer it as an option to the customer. We decided that we didn't want to maintain and track customers paying by credit card. They can pay us on-line if they want, but it isn't automatic. Yes, you have to move the money from PayPal to another account. You click on the tab that says "Withdraw", type in the amount, pick the account to transfer it too (if you have more than one account), and submit it. So far, I have found it easier than the time spent going through the mail and making the check deposits. We set the PayPal fees up as a discount in QB to always balance QB deposits to the PayPal transfer.
     
  5. Az Gardener

    Az Gardener LawnSite Gold Member
    Posts: 3,899

    My wife and mother in law do a lot of biz on e bay and from what I have seen of Pay Pal I would run screaming into the night to get away from them. If a client decides not to pay you for whatever reason Pay Pal will go right back into your account and take the money. They have never won a dispute with Pay Pal, ever in years. I would suggest any other payment type besides Pay Pal..
     
  6. LushGreenLawn

    LushGreenLawn LawnSite Silver Member
    Posts: 2,121

    Guys,

    Paypal and Quickbooks prices are way out of line. I pay $6 per month as opposed to $30. My rate for Visa/MC is 2.19% keyed in. and there is a $15 minimun per month for transactions. The best part is that I can shut it off in the winter and be charged no fee's. PM me if you are interested, I can get you the information
     
  7. Two Seasons

    Two Seasons LawnSite Senior Member
    Posts: 791

    Monthly charge and per transaction charge method seems to me to be a better way to do it.

    I think if you check into it, you could actually go wireless---via your mobile telephone---right into a CC processor/bank. Of course you'd have to have a CC card swiper or punch the numbers manually into your telephone.

    Upside is your customer knows you don't hold their CC number and your business now offers another form of convenience for them. You'd have to work that expense item into your P&L to see if it makes sense.
     
  8. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    i have it so clients cane pay via my website through pay-pal and they all love it since its easy for them, as for costs this is what it is for me.
    Total Payment Amount:
    $71.23 USD
    Fee Amount:
    -$2.37 USD
    Net Amount:
    $68.86 USD
     
  9. Roger

    Roger LawnSite Fanatic
    Posts: 5,927

    Frontier ... That is about 3.3% off the top. Do you have other monthly fees? Or, are any monthly fees spread throughout the transactions, so that each transaction is paying a portion?

    How do you manage to keep track of the net proceeds from an invoice? Each month, a customer is given an invoice (e-mailed, or whatever means -- makes no difference). But, your net cash flow is less than the invoice amount.

    I use QB with a monthly invoice -- send your check back -- type scheme now. When I cash the check, the full invoice amount shows up in my account. Using your example, my invoice would have $71.23 as "amount to be paid," but in the end, only $68.86 would show up in my account. Would I have to make a credit for each invoice with the $2.37, charging that credit off to "PayPal charges?" I can foresee any time savings of invoice/checks quickly being taken by more work in managing each account to consider the PayPal charges.

    How to manage? Others, you may also have some input on this question.
    Thanks.
     
  10. Frontier-Lawn

    Frontier-Lawn LawnSite Silver Member
    Posts: 2,949

    thats the only costs for credit cards. so basically i pay $2-$3 per trans for credit cards
     

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