Using Paypal-

Business By cohen1 Updated 30 Jan 2010 , 6:30pm by cohen1

cohen1 Posted 29 Jan 2010 , 3:48am
post #1 of 19

Ok, I did a few searches on here and only found one hit but the link did not work.

So here is my question.
Does anyone use Paypal for credit card payments instead of having a CC machine? Which option/product do you use?

Any thoughts or guidance would be most appreciated.
Thanks,
Barbara

18 replies
thecookieladycc Posted 29 Jan 2010 , 4:11am
post #2 of 19

I do for the simple fact that I don't have a CC machine yet. A few people have told me that they would rather send me a check then use it. But I have received quite a few payments from it.

lacie Posted 29 Jan 2010 , 12:16pm
post #3 of 19

i use it as it is cheaper than having a monthly payment to a cc processing company. i do charge a processing fee, people do not seem to mind.

Classycakes Posted 29 Jan 2010 , 12:44pm
post #4 of 19

I use it as well because it offers the customer another payment option. I haven't had any problems at all.

I do not charge a processing fee because I've read somewhere that it is illegal to charge a fee. You can charge a discount if they use cash but you're not allowed to charge them a fee for using a credit card. Not sure about this so you would have to check it out.

I figure it's just another cost of doing business.

costumeczar Posted 29 Jan 2010 , 12:56pm
post #5 of 19

I use it, but I don't charge a fee because I didn't think you were supposed to. Lacie, you should check into that if you do charge one.

People seem to like the option of being able to use the credit card, so I figure the fees are worth it, and you can deduct them as bank fees on your business taxes anyway.

korkyo Posted 29 Jan 2010 , 1:10pm
post #6 of 19

Just research the CONS of paypal, make sure you are aware of the risk and how others have been totally screwed. I'd open a totally seperate checking account so if something happens it's not messing with your regular accounts. I think paypalsucks.com is still around.

leah_s Posted 29 Jan 2010 , 1:18pm
post #7 of 19

I've used PayPal for years (and I have a CC machine for another biz) and love it. Easy to use, people trust it. I practically *require* that final payments are made at my website, via Paypal.

sweetlayers Posted 29 Jan 2010 , 2:28pm
post #8 of 19

I use google checkout most of the time, but have also began to use to paypal. I do suggest a separate small business account because co-mingling can get you into trouble. And instead of using shopping carts or buy now buttons for my wedding cake orders, I simply send my brides an online invoice for the amount they owe. I've never had problems.

Best of luck.

Kitagrl Posted 29 Jan 2010 , 2:35pm
post #9 of 19

I use Paypal too....works fine for me. I count the fees off as business expense...its the same as going out and buying supplies.

Have had only a few minor hiccups over the years and all have been resolved fine.

It works great to keep my cake business separate from our family finances. I have the Paypal debit card and credit card too.

CakeForte Posted 29 Jan 2010 , 2:57pm
post #10 of 19

I use google checkout. Prefer it over paypal, and most of my clients email me from gmail anyway, so it's easier for them.

gr8cakemaker Posted 29 Jan 2010 , 2:57pm
post #11 of 19

I just started using paypal incvoicing, I have used it twice and had problems with it both times. One was paypal's fault and the other was my clients fault. I will try using it again and see if it goes smoothly. Hopefully it will because I am a home based baker (yes Im licensed and legal etc) and need an option for people to pay me other than mailing me a check or meeting me for payment, which has become a hassle.

I would definitely do your research to find the best option for you! Good luck

CookieMeister Posted 29 Jan 2010 , 3:06pm
post #12 of 19

I do a lot of shipped orders for cookies, so my customers use paypal quite a bit. I consider the fee a cost of doing business, just like the fees you're charged if you have a CC machine (I do not).

I don't use their invoicing or shipping options; I use my own forms for that. My customer orders have my paypal information on them, and customers just log in and send it to my account.

Mike1394 Posted 29 Jan 2010 , 3:25pm
post #13 of 19

Just keep this in mind if there is a dispute of any sort, the money comes out of your acct. till settled.

Mike

Kitagrl Posted 29 Jan 2010 , 3:34pm
post #14 of 19
Quote:
Originally Posted by Mike1394

Just keep this in mind if there is a dispute of any sort, the money comes out of your acct. till settled.

Mike




Very true, I found this out the hard way last month....it was harrowing but we worked it out in the course of a few days...our bank worked with us in withdrawing the money back from Paypal and then we finished off the rest working with Paypal by resending a payment and getting a fee taken back off.

But that was the first situation of such in like 8 years of using Paypal so that's not bad.

JustToEatCake Posted 29 Jan 2010 , 3:50pm
post #15 of 19
Quote:
Originally Posted by Classycakes

I use it as well because it offers the customer another payment option. I haven't had any problems at all.

I do not charge a processing fee because I've read somewhere that it is illegal to charge a fee. You can charge a discount if they use cash but you're not allowed to charge them a fee for using a credit card. Not sure about this so you would have to check it out.

I figure it's just another cost of doing business.



Yes it's illegal. I know first hand. You can give a discount for cash but you can't charge a processing fee.

sweetcakes Posted 29 Jan 2010 , 4:44pm
post #16 of 19

i give the option to pay through paypal too. Its great if the order comes in and is too close to get a check cleared. A lot of my customers use it. I dont have a fee onto their order because that is not permitted, by any CC company either. Its against the contract you have with them.

I also like the fact that i can then pay for my cake items that i order with the balance that i keep in paypal, and pay for my cake items that i get through ebay.

And what i really like the most is that you can go back over the whole year, further back if need to to print out all your purchases and credits that you did. so when it comes time to do your paper work you can make sure you have them all incase you forgot to print one up, especially if you buy something.

Plus i dont have to go to the bank so often.

leah_s Posted 29 Jan 2010 , 6:45pm
post #17 of 19

I just paid a $10 "convenience fee" to buy a ticket online through Ticketmaster. I'm sure you've had a similar experience. We all know that fee pays for the human staff and the CC fees.

sugarcheryl Posted 29 Jan 2010 , 7:18pm
post #18 of 19

I use them also. I know you get charged but to me it's less headaches at the end and customers know about paypal.

cohen1 Posted 30 Jan 2010 , 6:30pm
post #19 of 19

Thanks everyone, I appreciate the information.

Quote by @%username% on %date%

%body%