Accepting Credit Cards

Business By LoveMeSomeCake615 Updated 9 Aug 2010 , 3:45am by LoveMeSomeCake615

LoveMeSomeCake615 Posted 7 Aug 2010 , 5:45pm
post #1 of 11

Do those of you with a home-based business or renting a commercial kitchen accept credit cards for payment? Right now we are only able to accept checks and cash, but I am wondering if that will become a problem down the road, since so many people use cards for everything these days. Do you use something like paypal, or some other way of accepting cards?

10 replies
snowshoe1 Posted 7 Aug 2010 , 10:04pm
post #2 of 11

We are not home-based, but we do use PayPal. Super easy. Some may say the fee is a bit much but most of our clients pay by check so we are not too concerned. For example, we just send a paypal invoice for $300 and there was a $9 fee.

LoveMeSomeCake615 Posted 7 Aug 2010 , 11:00pm
post #3 of 11

Oh yeah, that's not too bad! That's the other thing I wondered about, how much the fees would be.

tracycakes Posted 8 Aug 2010 , 9:38pm
post #4 of 11

We just recently set up to accept credit cards and we use paypal. It's easy and our customers can call in, give us a number and pay without having to come in.

Kitagrl Posted 8 Aug 2010 , 10:03pm
post #5 of 11

I use Paypal too.

I recently talked to my bank (where I have a small business acct) and they said for my low volume of credit card orders, they cannot give me a cheaper rate than Paypal does. So I"m fine with the fees Paypal gives. Its very handy for taking deposits, especially.

I take final payments via Paypal or checks unless its a regular customer. I only take checks for deposits.

LoveMeSomeCake615 Posted 8 Aug 2010 , 10:59pm
post #6 of 11

Thanks everyone! Sounds like Paypal is the way to go for now. We probably won't do a very high volume of CC orders either.

sweetiesbykim Posted 8 Aug 2010 , 11:31pm
post #7 of 11

Since most of my local orders are discussed via email, they like to pay through Paypal or sometimes cash on delivery (if I know them), so no bank account or credit card numbers are given and no checks to take to the bank (time is money!!). When someone signs up for a Paypal account, they have their bank account and credit card numbers on file, and can choose which they want to use for each purchase. PP is just the go-between. This is important for security reasons, for me and my customers. I just send customers an invoice through PP, and they log in and pay it.

I mainly sell my cookies online, and most everyone that orders from me already has a Paypal account. If I need to charge for extra shipping after the order is mailed, I can just do a quick "request for money" that is emailed to the customer from PP. Quick and easy!!

My mom has a jewelry business, and she's noticed that if they can pay with a card, they will spend much more! I found this has more than doubled her sales and mine, being able to accept payments through PP. Another great feature!

Yes, they do charge a small fee, but I have a debit card attached to my account. When I use it as a credit card, they give me a monthly bonus back on my account, so I earn some of that back. I'm not using my personal bank account for supplies, but using the all of my customer's money that's accumulated in the account! Transactions eligible for cash back:

1. Purchases that you sign for
2. Purchases from online merchants
3. Catalog or telephone purchases

Also, my account is also a money market account, so I earn a small amount back on my balance, too. No, I don't have thousands in the bank, but whatever is in there at the time earns money. No penalty if I have a zero balance either!

NO, I don't work for PP, but I worked for a credit card company in the fraud department for several years. For me, the small transaction fee is DEFINITELY worth it!!

KTB4 Posted 9 Aug 2010 , 1:20am
post #8 of 11

For those of you who use Paypal are you concerned at all about customers opening disputes? I've read lots of things online about how Paypal generally favours the buyer in disputes.

I just worry that if someone had buyers remorse and decided to ask for a refund but I said no (in a situation of course where one wasn't justified) that they'd open a dispute and Paypal would give them back their money anyway.

elliespartycake Posted 9 Aug 2010 , 1:51am
post #9 of 11

I haven't had a problem with PayPal. I have a link on my website and customers can just go there and submit a payment or deposit. Easy for both of us and worth the fee. I get many phone and email orders, so its an easy way for them to pay ahead of time.

sweetiesbykim Posted 9 Aug 2010 , 3:39am
post #10 of 11
Originally Posted by elliespartycake

I haven't had a problem with PayPal. I have a link on my website and customers can just go there and submit a payment or deposit. Easy for both of us and worth the fee. I get many phone and email orders, so its an easy way for them to pay ahead of time.

Ditto! I've had just a few customer issues, but since most of my orders are shipped, and I go over details thoroughly in written emails, there isn't much question regarding flavors or design. When the shipped order has been ruined or melted, we look into why and if it's me or the post office's error. I think if you're willing to work it out with the customer and clearly state your policies from the start, you won't have many issues.
To ease all the emotions I have from a disgruntled customer, sometimes I put myself in the mind-set of being an employee in a customer service center (which I've done before), not the owner. So I take the opinion of "Sure, I can see why you're not happy. We can refund you're money immediately as we want to keep you as our valued customer." Their policies never wanted us on the phone fighting with a customer over a $20 item, or even a $50 item. If the refund was going to be substantial, we would hand it off to a manager, but most of the time they approved it anyway. This was while working for Wllms-Snma and Pttry Brn customer service.

I think reading all these "bridezilla" horror stories on CC gets some people spooked about the power of the customer, but it rarely happens. I've been using my account for over 5 years, doing everything from taking orders to buying and selling items on Ebay, and never had a dispute that has gotten even close to contacting Paypal. From working at a credit card company in the investigations dept (yes, I've had many careers), they always send a letter to both parties to try and work things out so they are the last resort only. The first thing they would do is ask for written documents, so as long as you have photos and plenty of detailed emails, you're good!

LoveMeSomeCake615 Posted 9 Aug 2010 , 3:45am
post #11 of 11

Thanks sweetiesbykim, that was very helpful and encouraging! Everyone's responses are very helpful, thanks!! icon_biggrin.gif

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