Accepting payments for Cakes

Business By getcakepro Updated 22 Dec 2013 , 12:25am by vgcea

getcakepro Posted 19 Dec 2013 , 5:09pm
post #1 of 26

How do you guys currently accept payments for cakes? 

 

Has anyone used "Square" or "Paypal" card readers to accept payments?

25 replies
costumeczar Posted 19 Dec 2013 , 5:26pm
post #2 of 26

I have square and paypal payments and use both. I love the square reader, it's very convenient. I took a payment through it yesterday using my phone.

howsweet Posted 19 Dec 2013 , 5:33pm
post #3 of 26

AConvenient, but pricey. Be sure you compare all your options using the amount of income you expect to make. That will determine whether you want to bother with something like the square.

jason_kraft Posted 19 Dec 2013 , 5:37pm
post #4 of 26

AWe accepted cash and checks only. If I still had a business I would accept credit cards with Square and charge the additional fees to the customer (it is now legal to do this). I try to stay as far away from PayPal as possible.

SystemMod1 Posted 19 Dec 2013 , 5:38pm
post #5 of 26

he user name "GetCakePro" should be a tip... :D  SPAM

jason_kraft Posted 19 Dec 2013 , 5:39pm
post #6 of 26

AHow is this spam?

leah_s Posted 19 Dec 2013 , 6:18pm
post #7 of 26

I love Square and it is not pricey at all.  reverse the charge to the customer.

costumeczar Posted 19 Dec 2013 , 9:10pm
post #8 of 26

The other post the OP has written was about designing some kind of cake software, so I assume that the question about payments is part of that overall process. I wouldn't call it spam until it starts to have lots of links to sell said software.:roll:

vgcea Posted 19 Dec 2013 , 9:35pm
post #9 of 26

ALast I heard, charging the customer the fees was illegal but there were some changes in the works.

Carrie789 Posted 19 Dec 2013 , 9:48pm
post #10 of 26

Jason, What kind of problems have you had with PayPal?

jason_kraft Posted 19 Dec 2013 , 9:55pm
post #11 of 26

A

Original message sent by vgcea

Last I heard, charging the customer the fees was illegal but there were some changes in the works.

There was a settlement earlier in the year allowing surcharges. It looks like there are still several states that ban the surcharges though. http://usa.visa.com/personal/using_visa/checkout_fees/

It's easy enough to get around this by just increasing your prices across the board to cover credit card fees, and offering customers a cash discount. Or just pocketing the extra profit from cash customers.

jason_kraft Posted 19 Dec 2013 , 10:00pm
post #12 of 26

A

Original message sent by Carrie789

Jason, What kind of problems have you had with PayPal?

I haven't had any problems myself (since I limit my use of PayPal and be sure to keep a zero balance with no links to bank accounts) but I've heard several stories where PayPal customers have had their entire accounts frozen due to a single customer dispute. Since PayPal is not a real bank they don't have to follow the same rules banks do.

Accepting PayPal also gives customers two options for disputing a payment: they can dispute directly with PayPal, and if that doesn't work they can dispute with their credit card company.

howsweet Posted 19 Dec 2013 , 10:11pm
post #13 of 26

I mean it's pricey compared to what I pay with my merchant services company. My prices already do reflect the charges, because after quoting a $500 price for a cake, I'm not going to say, oh and by the way, that will be $14 extra for running your card. (that's based on 2.75% -- not sure what the square charges these days).

jason_kraft Posted 19 Dec 2013 , 10:14pm
post #14 of 26

A

Original message sent by howsweet

I mean it's pricey compared to what I pay with my merchant services company. My prices already do reflect the charges, because after quoting a $500 price for a cake, I'm not going to say, oh and by the way, that will be $14 extra for running your card. (that's based on 2.75% -- not sure what the square charges these days).

Square also charges 2.75% for swipe and online transactions. Manually entered transactions are 3.5% + 15c due to higher fraud potential.

https://squareup.com/pricing

howsweet Posted 20 Dec 2013 , 2:34am
post #17 of 26

AYes, the actual cost is closer to 2 % after fees. I figure it out from time to time, but I'm not good at remembering exactly what it comes out to. When I have time I'll figure it up and post back. And I don't accept am/ex or discover and if someone uses an international card, I warn them there might be an extra fee.

howsweet Posted 20 Dec 2013 , 3:18am
post #18 of 26
jason_kraft Posted 20 Dec 2013 , 3:21am
post #19 of 26

A

Original message sent by howsweet

Ok, I sincerely apologize to everyone for posting the wrong information!   I remembered it was lower, but I can't remember numbers I don't look at more than once year (I know many do).  Anyway, it comes out to about to 2.8 %,   but I run everything online for the convenience of my customers and also so everything is paid in advance.  I never see a card, so that's still less than the square which would be 3.5% (plus the per transaction charge). 

Square is still 2.75% for online sales, the higher rate only kicks in if you manually enter the credit card number. It's the same rate for Amex and Discover as well.

jason_kraft Posted 20 Dec 2013 , 5:16am
post #22 of 26

A

Original message sent by howsweet

That's what I just said I do. I said: [B]but I run everything online for the convenience of my customers and also so everything is paid in advance.  [COLOR=FF0000]I never see a card,[/COLOR] so that's still less than the square which would be 3.5% (plus the per transaction charge).[/B] I will also say it in your words. [B]I manually enter the credit card number  [/B] :D If you'd like to know why I think it's important that I do it this way, I'd be happy to explain it.

Got it, when you said you run everything online I thought you were talking about an e-commerce transaction through an online shopping cart (which would be 2.75% without having to see the card in person).

TheSugarLab Posted 20 Dec 2013 , 5:23am
post #23 of 26

I just square and I absolutely love it! We do have a retail shop so the Square Register is wonderful. It allows us to put all of our products in and makes it easy to see what is selling. I also really like the reports you can run. 

 

I have never had a problem with money not depositing. There was even a time where the credit card processing easy taking a significant amount of time (it was actually windy at the time so I just figured it was my internet connection). It ended up being an error on Square's end so they waived all of the transaction fees during that time. 

howsweet Posted 20 Dec 2013 , 5:24am
post #24 of 26

My goal is to be as precise as you. In my head I already am. :lol:

scrumdiddlycakes Posted 20 Dec 2013 , 9:00am
post #25 of 26

I use swipe and mine costs less than 2.4%, I think that's because I got in when they first launched. According to tehir site they are 2.69, which is still less than square. I use to use square, but had issues with them and not getting my money for days. I do use paypal as well, but most people pay with cheques.

vgcea Posted 22 Dec 2013 , 12:25am
post #26 of 26

A

Original message sent by jason_kraft

There was a settlement earlier in the year allowing surcharges. It looks like there are still several states that ban the surcharges though. http://usa.visa.com/personal/using_visa/checkout_fees/

It's easy enough to get around this by just increasing your prices across the board to cover credit card fees, and offering customers a cash discount. Or just pocketing the extra profit from cash customers.

Thanks Jason.

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