PAYPAL..your views?

[Tony Scott]

I've recently updated my PayPal to a Business account so I can now accept Credit/Debit cards and PayPal, I did this initially so I could accept a deposit payment from one of my clients in Sydney.

It's been up there about 10 days and I've already had 6 clients pay their deposits this way. The fee is £1.90 for a £50 payment which I'm fairly happy with, I'm really glad I did it....well happy!

Here's my 'Payment' page: www.partyshopdisco.co.uk/payments ...it's really simple to set up and think it will only benefit my service.

I wonder if more people will want to put their wedding expences on Credit Cards given the current financial situation?

What are your views on the pro's & con's, charges etc?

[wensleydale]

fine for £50 but wouldnt like to take total fee from it.

i find most people are happy with bank transfers these days- certainly easiest for me

[Tom]

I used to have a merchant account but got rid of it as it was costing me money on my bookings. So now I don't accept Paypal as a form of payment.

[Danno13]

Too expensive really, I'd sooner have a proper card machine and then you can also take card details over the phone. It's only usually around 30-40p for debit card transactions with a proper merchant account, so alot cheaper than paypal, but then I guess it depends how much you'd use it. I'm still shopping round for the perfect solution..

I also don't think paypal gives the best image.. too "dodgy ebay trader" for my liking, but thats just my personal opinion. I also don't like how you can't integrate it into your website properly and have to send them to paypal's own site.

[Tony Scott]

I'll see how it goes but at the moment I'm lovin' it,

9 bookings in 10 days:

6 - PayPal,
1 - cheque
2 not back yet.

...so it seems popular?

[Tom]

I think its popular because its easy and a lot of people use it or know someone who has it.


Card payments like what Dan said does look better plus it's cheaper. :)

[Solitaire Events Ltd]

I have a Streamline machine. Very convenient.

[Vectis]

I use PayPal. Use a bit of scripting to generate a unique page for each client with the right amounts on there.

About 9/10 customers use it for the deposit, and about 7/10 for the balances.

Knowing this, when I revised my pricing last, I included a couple of extra quid for the commissions. It's also tax deductible.

I also tinkered with Google Checkout and Nochex but virtually no-one used them, so I took them off again.

I'm not (yet!) in the merchant account / card machine league so this works a treat for me.

[Tony Scott]

I think its popular because its easy and a lot of people use it or know someone who has it.


Card payments like what Dan said does look better plus it's cheaper. :)

I agree but I think you need quite a big turnover to justify it, the service I provide is at a professional standard but it's only a part time venture.


I have a Streamline machine. Very convenient.

We have one of those at 'The Party Shop' but they can't take payments for me, it gets a bit messy regarding tax returns, bookwork etc.

[Solitaire Events Ltd]

Actually, you guys don't know how wrong you are about taking card payments - it's not expensive at all if you go about it the right way.

[Vectis]

it's not expensive at all if you go about it the right way.

Come on then, spill 'em :o

[Solitaire Events Ltd]

Come on then, spill 'em :o

Firstly join the FSB.

Secondly get a very good deal on a machine from Streamline.

:thumbsup:

[Steve the DJ]

What are your views on the pro's & con's, charges etc?

PayPal works well for me and is a recognisable brand which is trusted by most clients.

The fees are bearable considering the frequency it gets used, which for me is fairly rarely.

I would say 80% of my clients utilise Internet Banking and payment by BACs (which in many cases arrives in 24 hours now), is without doubt the most popular payment method followed by cheque, both of which cost me diddly squat to process.

There is no valid business reason for me to even contemplate acquiring a Merchant Account or terminal, virtual or otherwise, so PayPal is a perfectly adequate solution on the off chance someone wishes to pay by card.

[Solitaire Events Ltd]

There is no valid business reason for me to even contemplate acquiring a Merchant Account or terminal

Professionalism, cost, convenience?

[Steve the DJ]

Professionalism, cost, convenience?

Professionalism

I fail to see how not having a Merchant Account or Terminal makes me any less "professional" than someone who does.

I provide a wide range of payment options and have never lost a booking, received a complaint or been told "I'm not a proper business" because I don't have something I don't need.

Cost

As mentioned earlier I don't have the volume of card transactions for a different set up to be more cost effective, nor do I want them when other payment methods are being actively used by my clients without any fuss that cost me zip to process.

Convenience

I assume you are referring to someone wanting to pay by card over the telephone?

In 20 years not 1 single person has ever asked me if they can pay by card over the phone, therefore I do not believe it is an inconvenience not to provide this facility.

[Solitaire Events Ltd]

Professionalism

I fail to see how not having a Merchant Account or Terminal makes me any less "professional" than someone who does.

I provide a wide range of payment options and have never lost a booking, received a complaint or been told "I'm not a proper business" because I don't have something I don't need.

Cost

As mentioned earlier I don't have the volume of card transactions for a different set up to be more cost effective, nor do I want them when other payment methods are being actively used by my clients without any fuss that cost me zip to process.

Convenience

I assume you are referring to someone wanting to pay by card over the telephone?

In 20 years not 1 single person has ever asked me if they can pay by card over the phone, therefore I do not believe it is an inconvenience not to provide this facility.

I get loads now. It is convenient and cheaper than paying in at a bank too.

[Steve the DJ]

I get loads now. It is convenient and cheaper than paying in at a bank too.

I don't think I understand? Cheaper and more convenient for who?

It doesn't cost me anything to pay into my business account, even the envelope is postage paid for cheques!

[Solitaire Events Ltd]

I don't think I understand? Cheaper and more convenient for who?

It doesn't cost me anything to pay into my business account, even the envelope is postage paid for cheques!

More convenient for the client - not having to send a cheque or use online banking and more convenient for me, not having to go to the bank. I assume you still have to go to the post box? :p

I have to pay bank charges and it costs me less to take a card payment than it does to pay a cheque in.

The machine costs less than £5 a week to hire and I think it's worth every penny.

If it doesn't suit you or your business then fair enough, but it does me.

[Shaun]

I use paypal for accepting deposits through my website. No complaints.

[Steve the DJ]

More convenient for the client - not having to send a cheque or use online banking and more convenient for me, not having to go to the bank.

I find using online banking less of a chore and more secure than making a payment over the phone, each to their own I guess.



I assume you still have to go to the post box? :p

That is the job of my Office Manager... :D



I have to pay bank charges and it costs me less to take a card payment than it does to pay a cheque in.

Fair enough, I don't have any bank charges for paying anything in and spend less than £30 a year on PayPal fees.

[Solitaire Events Ltd]

Fair enough, I don't have any bank charges for paying anything in and spend less than £30 a year on PayPal fees.

You need to improve your turnover then :boxer2: :sj:

[Danno13]

The way I'm looking at it, is that it will cost me £240 a year for the machine, if the convenience wins me one booking in a year that I wouldn't have got otherwise, then it's money well spent. And of course, there's the convenience factor for exisiting clients and last minute bookings can pay instantly.

I offer BACS transfer as well as cheque and print my details on all my invoices, but very few clients take me up on it.. probably less than 10%. I doubt cheques will be around for too much longer, so its best to start preparing for that now.

[Tony Scott]

......... I doubt cheques will be around for too much longer, so its best to start preparing for that now.

That's a good point.....

[Steve the DJ]

You need to improve your turnover then :boxer2: :sj:

Cheeky bugger...:p

It's not my fault that Abbey only charge you if you pay in loads of cash and leave everything else as free.

If I get too much cash I just pay it into a normal account and transfer it in for free...:D

[rob1963]

I wonder if more people will want to put their wedding expences on Credit Cards given the current financial situation?


I'm not sure about that, as I don't think many people have a £20,000 limit on their credit card, and even if they DID, the interest would be astronomical!


What are your views on the pro's & con's, charges etc?

I think taking payment by Paypal is a good idea, as the charges are reasonable and it's quick, simple & you can use it to pay from your bank account OR credit card.

My Paypal account is already a premier account, so I'll certainly be thinking about accepting payments this way in the near future.

[ppentertainments]

I'm not sure about that, as I don't think many people have a £20,000 limit on their credit card, and even if they DID, the interest would be astronomical!


That's a good point Rob. I have read about many people saying they are getting more requests for credit card payment. I am finding the opposite and getting more and more cash payments even for deposits, with people often coming to my door with booking forms and deposits.

[Vectis]

people often coming to my door with booking forms and deposits.

That's them double-checking you actually exist and clocking which house to torch in case you don't show up for their wedding :D

</cynic_mode>

[ppentertainments]

That's them double-checking you actually exist and clocking which house to torch in case you don't show up for their wedding :D

</cynic_mode>

You could be right there :D :D
A majority of the people who do this seem to be higher paying weddings and people who have been let down in the past. Unfortunately they also know where to come if they think I am rubbish on the night :eek: :eek:

[Steve the DJ]

As I said earlier you are not alone, the number of my clients that want to pay by credit/debit card is very small.

I often wonder though if it is because I mainly do Weddings? I mean, most couples I come across who are planning a Wedding have their funds in a separate savings account and pay all their bills from it by cheque or transfer as it doesn't have a debit/credit card.

[Solitaire Events Ltd]

As I said earlier you are not alone, the number of my clients that want to pay by credit/debit card is very small.



I honestly think it comes down to perception again Steve. When I tell people they can pay by card on the phone, most are fairly surprised that a little disco company can provide that facility.

[CRAZY K]

and last minute bookings can pay instantly.



Im doing one tonight---cash in my hand before a step is instructed or a note of music is played;)

Works for me.

I appreciate possibly some Disco customers are lets say --not as trustworthy as others:eek:

CRAZY K

[Steve the DJ]

I honestly think it comes down to perception again Steve. When I tell people they can pay by card on the phone, most are fairly surprised that a little disco company can provide that facility.

Maybe so, but as I said earlier I rarely speak to prospective clients initially.

95% of my bookings are agreed, contracted and deposit paid electronically without a telephone conversation taking place.

I provide a full list of the payment methods I accept with the initial contract and despite credit/debit card being top of the list, 99% of the time I receive a BACs transfer or cheque.

Go figure. :shrug:

Anyway, we are all agreed that offering a credit/debit card payment facility is a must, the method you choose of course will reflect your business needs.

[CRAZY K]

Maybe so, but as I said earlier I rarely speak to prospective clients initially.

95% of my bookings are agreed, contracted and deposit paid electronically without a telephone conversation taking place.

I provide a full list of the payment methods I accept with the initial contract and despite credit/debit card being top of the list, 99% of the time I receive a BACs transfer or cheque.

Go figure. :shrug:

Anyway, we are all agreed that offering a credit/debit card payment facility is a must, the method you choose of course will reflect your business needs.

Out of interest Steve what is the cost to you as a merchant of using Debit or credit card, also does it cost the customer?

We just paid the IR bill for my wifes tax liability and the :Censored: beggars wanted 1.25 per cent for a Credit Card payment--:eek:

We dont charge for cash:D

thanks

CRAZY K

[Solitaire Events Ltd]

We just paid the IR bill for my wifes tax liability and the :Censored: beggars wanted 1.25 per cent for a Credit Card payment--:eek:


I charge more than that if people want to pay by credit card. I don't see what's cheeky about it for an Inland Revenue payment - why should they have to pay for other people's convenience? They aren't a finance company are they? They take money for people's tax etc and 1.25% is very cheap!

[Steve the DJ]

Out of interest Steve what is the cost to you as a merchant of using Debit or credit card, also does it cost the customer?

Standard PayPal charge on a business account to receive payment is 3.4% + 20p but it is free to the client (although you can charge a % if you wish).

So if a client wants to pay a £100 deposit I actually receive £96.40.

I think I did change it actually so it automatically adds 2.5% to the amount to help cover some of the cost, I'll double check.

It is fairly expensive I guess but I have just checked how many PayPal payments I processed last year and it came to the grand total of 3, so there is no advantage for me going down a different route as PayPal is still more cost effective for me at the moment.

PayPal do offer a Virtual Terminal service but it is ridiculously overpriced.

[Vectis]

Standard PayPal charge on a business account to receive payment is 3.4% + 20p but it is free to the client

Yeah, but only for the first £1,500 of the transaction then it goes down on a sliding scale to 1.9% for £15,000+.

So that's OK then... :p :o



I think I did change it actually so it automatically adds 2.5% to the amount to help cover some of the cost, I'll double check.


That's one of the configurable options when you create your payment button. You can set the %age at whatever you like.

[Steve the DJ]

Yeah, but only for the first £1,500 of the transaction then it goes down on a sliding scale to 1.9% for £15,000+.

So that's OK then...

Gives us something to aim for... :D

[CRAZY K]

I charge more than that if people want to pay by credit card. I don't see what's cheeky about it for an Inland Revenue payment - why should they have to pay for other people's convenience? They aren't a finance company are they? They take money for people's tax etc and 1.25% is very cheap!

I see--I thought Government owned and run bodies like the Inland Rev and the NHS were a non profit making organisation simply adminstering their customers needs --

Did you notice the outrage about being charged for a Hospital Car Park or telephone call rip offs in Hospitals--same thing.

As it happened we paid cash at the Post Office ( im not sure if thats owned by the Government--maybe is just now---) and they made no charge and its a hell of a lot of admin for them.:D :D :D

As for Credit Card companies--dont get me started:eek:

CRAZY K

[Solitaire Events Ltd]

I see--I thought Government owned and run bodies like the Inland Rev and the NHS were a non profit making organisation simply adminstering their customers needs --



So if they are getting charged for taking credit cards, then they are going to pass the cost on, aren't they? Otherwise they'd be making a loss and the cost would be passed on to other tax payers which is slightly unfair...

[A1DL]

We added a PROTX merchant account to the website last year, however there are a significant number of people whom prefer not to key their card details over the internet and still like to pay "the old fashioned way" by telesales (giving their card details over the phone).

Of our total merchant transactions, there are still more going through the telesales terminal than via the web.

At the end of the day, the processing costs are identical on both manual and web merchant accounts. The web reduces administration, however in my book the Customer is King and should be given the choice of a menu of payment options to suit, which is what we aim to do.

[A1DL]

So if they are getting charged for taking credit cards, then they are going to pass the cost on, aren't they? Otherwise they'd be making a loss and the cost would be passed on to other tax payers which is slightly unfair...

That's a fair point, Daz. I guess this is the same reason we now have to frank the VAT return, whereas for the last 300 years HMRC kindly supplied a first class prepaid envelope to ensure they received one's cheque the following day!

[wensleydale]

I'm not sure about that, as I don't think many people have a £20,000 limit on their credit card, and even if they DID, the interest would be astronomical!




I think you'd be surprised- until recently it was very very easy to get cc credit- we paid for our wedding by amex just for the air miles and got 2 return flights to rio.

its trickier these days but still not difficult to get more than your annual salary as a credit limit.

[Vectis]

I used to collect cards for the various deals, in fact I just closed about 10 of them as some had started to introduce charges for NOT using them for 6 months or more :bang:

Before I did this I had theoretical access to almost £200k of unsecured credit :eek:

Now it's down to about £60k but thankfully I don't carry anywhere near this amount on them :)

[rob1963]

Now it's down to about £60k but thankfully I don't carry anywhere near this amount on them :)

:jawdrop:

The limit on my ONE credit card account is £4,000...and that's nearly £4,000 more than I need!

Current balance = £94.00 in CREDIT (as I ordered a lighting stand a couple of months back which wasn't due to be in stick until the middle of February).

:D :D :D :D :D

[wensleydale]

:jawdrop:

The limit on my ONE credit card account is £4,000...and that's nearly £4,000 more than I need!

Current balance = £94.00 in CREDIT (as I ordered a lighting stand a couple of months back which wasn't due to be in stick until the middle of February).

:D :D :D :D :D

depends what you use them for though- like vectis i used to move a lot of cash around and take advantage of the offers- when the interest rates were higher and before bt fees came in you could make a fair bit of cash each year- £1000 plus a year was not hard.

[Vectis]

Yep. Stoozing was such fun while it lasted :p

[Dynamic Entertainment]

All this talk of cards/cheques/BACS is making my head hurt.

I say we all forget the lot and stick with "Cash & Dash" :sofa: :D :D

Ive looked at paypal but as yet ive yet to be asked about any form of card payments. I think in the future i will look at something like Streamline, aslong as my plans go to...erm...plan :)

[Vectis]

Ive looked at paypal but as yet ive yet to be asked about any form of card payments. I think in the future i will look at something like Streamline, aslong as my plans go to...erm...plan :)

I wasn't asked for it, I just started offering it, and now the vast majority of my payments come in this way.

[Dynamic Entertainment]

I wasn't asked for it, I just started offering it, and now the vast majority of my payments come in this way.

Think i may have to look a bit more into it. May give my web guy a bell about setting up a page. Im assuming it doesnt cost anything if it doesnt get used?

[Tony Scott]

Think i may have to look a bit more into it. May give my web guy a bell about setting up a page. Im assuming it doesnt cost anything if it doesnt get used?

Nothing to pay unless you get a payment..

[Twinspin]

I dont like paypal. I refuse to pay their charges. So i just accept cheques

[Tony Scott]

I dont like paypal. I refuse to pay their charges. So i just accept cheques

is it just the charges you object to or are there other reasons for not liking paypal? :)

[Twinspin]

its the charges thats the only reason. Been stung a few times by them. for doing paypal transfers on expensive gear.

so sooner use personal cheque.

[wensleydale]

its the charges thats the only reason. Been stung a few times by them. for doing paypal transfers on expensive gear.

so sooner use personal cheque.
they have to make a profit though- they are a business after all

[DazzyD]

This is quite a timely thread. I'm in the process of setting up my new wedding disco website and I've just added a payments page with a PayPal Buy Now! button to take deposits. I accept that it may be more expensive than other methods of electronic payment but it suits my needs and that's good enough for me!


I wasn't asked for it, I just started offering it, and now the vast majority of my payments come in this way.

This is a key strategy, Martin. Being proactive is one of the best qualities in business. If you wait until your customers start asking for something, chances are that one of your competitors has already gone and offered it and you've missed out. There are enormous advantages to being the pioneer (ie first to do something!) in your field. Just look at Dyson with his bagless vacuum cleaner design.

[501damian501]

oh yes, i have a business account with paypal, very usefull !! and very happy with the service they provide

[nigelwright7557]

I dont use Paypal for my disco.
I usually get a cheque for deposit then cash on the night for the remainder.