Best way to process payments?

Discussion in 'Growing and Managing a Business' started by The Best Around, Jan 30, 2013.

  1. The Best Around

    The Best Around
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    So without going into too much detail, my business is going to be offering different business services. Some services will be monthly (would call for auto-billing) and some would be one-off things that aren't really billed monthly, or they are buying a certain amount of something (irrelevant example, pretend a candy bar was $1 and their cost was dependent on how many they selected) . My question is, what would you recommend doing for payments? I was thinking of sending all interested prospects PDF's where they could put in their credit card information, and then I can applicably bill them. If I do that, what program/software should I use to process credit card payments? PayPal? But part of me thought it would be good to have something like PayPal on to get some impulse customers. But some of the services wouldn't allow for a quick Paypal transaction. So my question is, what do you think I should do?

    Thanks for all help!!!
     
  2. Fergal

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    First of all welcome to Business Advice Forum, The Best Around.

    PayPal would seem like the quickest and most convenient way for you to get started. Once you are working OK with that you could look at other options for accepting credit cards, such as 2CheckOut.

    Why would they not, can you please explain that a little more? PayPal is extremely flexible and is used by a large variety and type of business. Perhaps it can also meet your requirements for all transactions.

    If you did something like that you would need to be very conscious of security. Taking and storing customers' credit card details represents a very serious security risk and that is the reason why most payment processors don't provide you with your customers' credit card details. The payment processors obtain and store those credit card details themselves, because they have the substantial infrastructure required to safely maintain that information.
     
  3. scifi

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    Try Telex Transfer Mechanism through bank.. though it take time but much safer and could be relied on... Called as TT transfer in common laguage...

    You can then ask your customer to buy credits from you which could lie with you and can be deducted in your ledger each time he awails your service...In this way your customer will also be safe from hassle of payments again and again...Just like advance cash cards sort of mechanism...
     
  4. Sprinkles

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    I agree with Fergul, Paypal is one of the quickest and most reliable. Moneybokers(skrill) is also another option that is worth thinking about.
     
  5. The Best Around

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    That part would be based on results. For example (this isn't it at all), pretend I was offering Twitter services where you gave me $1 for each Twitter follower that I got for you in February. How would that be billed?
     
  6. Fergal

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    When you charge people for a service and they don't pay you until the service is delivered to them, there is always a danger that you won't be paid. That danger will still be there regardless of what payment service or processor you used. When delivering a service that is based on results, you should probably request a proportion of the payment up front and then the balance at the end, depending on the results you have achieved. PayPal could work very well for that. What are you concerns regarding using PayPal in that way?
     
  7. The Best Around

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    I have 0 concerns with PayPal, just want to make sure that it fulfills my needs. I've used PayPal at the consumer level, not so much for business. So suppose just for argument's sake that I was going to do a month's work that would maybe be estimated at $300. Let's say I wanted $100 up front and the remaining $200 at the end of the month. Can you invoice people on PayPal to pay the $100, and then eventually to pay the $200?

    Also, if you do auto-billing through PayPal, who cancels? Is it the client canceling themselves, or is it the business owner doing the canceling?

    Sorry for all the questions, I've tried contacting PayPal and they were somewhat useless.
     
  8. PS9

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    In my opinion there's the easy way and the best way to do this.

    The easy way is use PayPal, it'll do what you want. You can do $100 up front and bill the remaining $200; you basically just email them an invoice before you start and another after you're done. Auto-billing can be canceled by either party, that's basically how any auto-bill situation works. All it takes is a PayPal account to get this done and I've started with PayPal for pretty much every venture I've done. Overall it's been ok... I had them hold all my money once while they asked for pretty much every bit of business information from where I get my stock to tracking numbers showing that the items were shipped. Apparently it's standard policy for them if you do a few thousand in sales a month.

    The best way is get a proper merchant account, most likely through your bank. Not because it has extra features but PayPal in most disputes will side with the buyer even if you're right. From what I understand this is basically because it's cheaper for PayPal; if the buyer disputes PayPal can issue a refund and debit your account, they'll do this because if they don't the buyer can dispute through his credit/debit card resulting in a chargeback fee being issued to PayPal. So from PayPal's view they just refund most disputes, I'm not sure if you have a high dispute ratio but since you're offering a service (or that's what it seems like) you're likely to have more disputes than retail sales.
     
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  9. eelizasanchez121

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    The PayPal account is the best way of payment processing in this your account is linked by you email address and you can get easily your payments done. Most of the websites and businesses are using PayPal account.
     
  10. TimeRider

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    The best way can be Paypal because you get paid immediately. Also, Cash can be good too. But there is also risk of getting robbed. I don't think Cheque is a good idea because here in my country people have problem with blank cheque. So, online payments like paypal and Cash can be good in my opinion.
     
  11. The Best Around

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    Also, so what happens if let's just say......there's a custom-based project. Let's just pretend that Month A there is a specific amount of work done that turns out to be $500. How is that $500 collected? I know one way is for the company to supply me with a credit card and I charge it on the Paypal terminal. But how can they pay it on their own? Is there a way to send an invoice through Paypal to request the money be sent?
     
  12. Fergal

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    Yes you can invoice them through PayPal. You can also invoice them by any other means, e.g. by snail mail or email and then have them send you the money via PayPal.

    PayPal is a great service and easy to use. Why don't you just sign up and take a look at it and see if it is for you?
     

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