I'm wondering how all of you guys take deposits? Do they pay you through PayPal? Or bank transfer? Do you send invoices? also what percentage do you do for deposits?
I take whatever form of $$$ people want to give me. It's safest to use checks and cash, though, because with Paypal or credit cards they can file claims and get their money back. A guy at paypal told me that for custom cakes there's no way to prove that the cake was fine if the customer claims that it was dry or tasted bad or whatever, and he told me that I should only take checks or cash!
If you do take a check make sure to get it far enough in advance for it to clear the bank before you deliver the cake so people won't bounce a check on you.
I only do $100 deposits because I don't want to have a lot of money sitting in my account until the cakes are delivered. I don't spend any of the deposit money or balance payments until the cake is done in case I drop dead and my husband has to refund people's money.
I use Square credit card service.
I have the "reader" devise plugged in to an iPad at my shop, and I use the same plug in "reader" on my cell phone. That way, I can take their card at the shop or over the phone. Most people pay cash, check or credit card in my part of Florida, for everything these days. I have used Square for about 5 years. There is no charge, if I don't use it one month. The money goes in my bank account minus their small charge.
I had a guy say he wanted his money back because he didn't recognize the charge for a baby shower cake. I sent (Square) my card company, a copy of the order form, emails from his wife and a picture of the cake with their name on it. Busted! The card company said, that was all they needed to deny his claim.