how to take a deposit online?

skintsaver_2

Hi all i have just finished creating my website and settinf up facebook page

My only question now is how would you go about taking payment for a deposit for a booking online

Im going to be providing childrens parties so will only be taking a very small deposit of £10-20 depending on what packaage is booked.

Should i use paypal? but then i have fees to pay

What about bank tranfer?

Any advice gratefully received

Lomast

The only way you wont be charged a fee is with bank transfer but from my experience a) not everyone has online banking so you may need to accept cheques as well and b) a lot of people are still under the false belief that if they make a bank transfer you are somehow going to empty their account.

Paypal or any other merchant service is going to cost money unfortunately but that is just one of the many costs of doing business.

bengalknights

I would suggest requesting cheque or bacs, just make sure that there is a landline listed as this makes people feel more comfortable if they can talk to you before sending etc

skintsaver_2

I think i would feel better if i asked for a cheque or bacs a few weeks before a booking.

To do this i take i need to open a business account. Best i get on the case asap

phill99

I often take a deposit for my work. Always via BACS. In my experience most people have access to Internet banking now. And those that don't, I take a cheque.

In your case I guess they are booking a few weeks an advance, so it's not like you need instant payment or they need to give it.

I would try to work without card payment system. They are costly and will eat into your margins. See how you get on for a year or so before committing to card payment systems.

skintsaver_2

Yeah I'm gonna try and stay clear of card machines at the mo

I'll go to the bank on thursday to see about opening a business account with lloyds as they have 18 months free transactions

paddyrg

I would absolutely do Paypal, as well as other payment methods. This is a small deposit, fees would be under a quid, then have cash on the day/cheque etc for the balance. The point is to make it easy for people to choose you over the next option. Busy parent at work just wants a button to press that says 'pay deposit now' and is over in moments.

Btw have you thought about the staging of your payments? All your costs are upfront, perhaps after the deposit you take 50% to cover them before ordering bespoke items and booking kit and venues? The parents will not be as motivated to pay you after the event as before, so maybe even take another tranche of cash (or the balance) on site before the party gets underway (and make sure the customer knows and brings the cash!)

skintsaver_2

If I opened a business account I could link the PayPal to that one then couldn't I? Like you say at least it will give me more options for people

I do not need to order any items, venue or kit before hand so getting more money before to order items is not an issue really.

In my terms and conditions it states that they must pay the remaining balance before the party commences so that should solve that

Mistral001

Just a general point. What do you do at the minute without the website. Do you take a booking fee with all your bookings now? If not, how many people have actually cancelled?

The website is only a means of advertising the service remember. It is not an online business you are running, but one of providing a service in people own homes.

Wywth

Lomast wrote: »

The only way you wont be charged a fee is with bank transfer but from my experience a) not everyone has online banking so you may need to accept cheques as well and b) a lot of people are still under the false belief that if they make a bank transfer you are somehow going to empty their account.

Paypal or any other merchant service is going to cost money unfortunately but that is just one of the many costs of doing business.

I think the fundamental fear of a bank transfer is that once the money is transferred, it's gone and there may not be anyway of knowing where the money has actually gone.
(All they may have is an account number and sort code)

At least with a cheque the customer knows a name and that there is a valid contact address.

Savvy_Sue

skintsaver wrote: »

In my terms and conditions it states that they must pay the remaining balance before the party commences so that should solve that

Do you know, I'm not sure I'd leave it like that. I can imagine various scenarios: Mum says "Oh I'm sorry I meant to withdraw the cash today and haven't managed it yet, I've lost my cheque book, can I drop it round to you tomorrow?" Are you going to walk away at that point?

I'd want to have the money at least 24 hours beforehand ...