Accepting Paypal for a small business (building trade)

minnie123

Hi,

My partner has a small business in the building trade and usually accepts bank transfers, cash or cheques.

However he has been asked if he can accept a credit card or paypal payment.

I am assuming there would be fees involved in this? Also i'm worried about the client being able to scam or reclaim the money back in some way? Does anyone have any further advice on this.

I think this particular client has asked as he wishes to pay for the work he wants doing via credit card.

Unsure what to do?

molerat

https://www.paypal.com/uk/webapps/mpp/credit-card-reader

fishybusiness

Wouldn't ever accept Paypal unless it was for online sales.

Have a look at Stripe....for online payments....

phill99

Look at Worldpay Zinc or iZettle. These are cc/dc payment systems that are ideal for small traders that take irregular payments. It uses a small card reader linked via bluetooth to an app on an ipad or smart phone. Very simple to use and the money is in your account within 3 days. I'm with Worldpay Zinc. There are no ongoing costs /charges, just a one off fee on each payment of 2.75% which I add to the customers bill.

I have now stopped taking cheques as it was taking iver a week to clear and the hassle of putting them in the bank.

theonlywayisup

phill99 wrote: »

I have now stopped taking cheques as it was taking iver a week to clear and the hassle of putting them in the bank.

Cheques may be a hassle to deposit and they take time to clear.

The 2-4-6 system was introduced in 2007. There are moves underway to slash this to 2 days clearing but it is not yet in legislation.

Currently the system means when you start to earn interest (Day 2);
when you are able to withdraw the money (Day 4); when the money is yours to keep (Day 6).

martindow

I wouldn't discount Paypal as it is well known and some people may have balances that they could use to settle the bill. All card payments have the risk of customers asking for a chargeback. This doesn't just happen with Paypal.

HappyMJ

martindow wrote: »

I wouldn't discount Paypal as it is well known and some people may have balances that they could use to settle the bill. All card payments have the risk of customers asking for a chargeback. This doesn't just happen with Paypal.

Hang on a sec....I've charged back with Paypal. That's why I use Paypal. For the protection it offers. It's much easier to charge back with Paypal than it is with the bank.

phill99

theonlywayisup wrote: »

Cheques may be a hassle to deposit and they take time to clear.

The 2-4-6 system was introduced in 2007. There are moves underway to slash this to 2 days clearing but it is not yet in legislation.

Currently the system means when you start to earn interest (Day 2);
when you are able to withdraw the money (Day 4); when the money is yours to keep (Day 6).

I'm still not taking cheques.

martindow

HappyMJ wrote: »

Hang on a sec....I've charged back with Paypal. That's why I use Paypal. For the protection it offers. It's much easier to charge back with Paypal than it is with the bank.

I'm not sure this is true. Card payments can be charged back regardless of who is handling the transaction.

Paypal allows chargebacks on low value transactions. Credit cards for transactions over £100 provide extra section 75 protection. Other cards are also liable to chargebacks.

I had a customer a few years ago who paid with a Mastercard and queried our transaction with their bank when the bill arrived some weeks later. Streamline who had dealt with card payments immediately debited the money and asked us to justify the transaction. After some faxing to and fro we showed evidence of the sale and the customer eventually remembered the payment. The money was then released back to us.