Getting a merchants account to accept credit cards is expensive if you don't have that much need for it.

Pay pal is a scarry place and still has fees.

Are there any other options to accept payments?
Thanks.

Why is PayPal scary? I wouldn't think of using any other service. Millions and millions of people use it on Ebay every day and there has never been a problem. PayPal is well respected throughout the world.

You will not find a secure service to handle credit card transactions for free. Now that's something I'd be scared of!

I've been checking into that also , so far Paypal is the cheapest they charge a fee , but if you go through a bank they want a set up fee plus a monthy fee plus a 3% like Paypal service fee. I'm watching this with you to see if it's Paypal or something else, I have to say everyone that I've talked to that has Paypal is satisfied. At least what I've heard so far.

I just set up an account with a company that has no start up fees and they charge 1.79% for a fee on credit card transactions. They do have a monthly minimum fee of $25.00 but if you run $1500 a month through the machine that takes care of your fee. If you would like more information you can PM me and I can give you the name and number of the woman I talked to and she can give you more information on what it would cost you for the amount of business that you do.

Just make sure if you go with a merchant service (besides PayPal) that you are fully aware of the contract you sign and what type of cancellation fee they charge. A lot of times they only show you the part that is on the application... but the application that you sign as a contract includes verbiage stating that you are signing for the full contract (12+ pages).

My boss did that and then when we had problems with the c/c company and tried to switch their cancellation fees were extremely high compared to other companies and we were stuck in a 3 year airtight contract. We are now counting down the days until we are free on January 9th.

Most merchant accounts I've researched have long-term (1 or 2 year contracts), and lots and lots of hidden fees that they bury in the gazillion-page long Terms. Our current merchant account has an annual $75 fee for THEM to upgrade THEIR software(!) They also charge $10 a month for "customer service" whether you use it or not. Then of course are the normal transaction fees.

If you just need to process the occasional transaction, I think Paypal is the cheapest and most hassle-free way to do it.

If you search the "cons" of paypal there are a lot of sites with info on bad service issues with them.
I've gotten stuck once for a charge back that I had no say so in the matter.

I just can't decide. Any others?

I have been using Google Checkout for the last few months and really like it. The customer does not need an account to pay through it. Very reasonable rates too. I purchase google adwords and each dollar I spend goes towards my rate fees. I didn't pay any fees in September. Can't beat that and customers seem to like it too. Go to Google Checkout, it will be better explained there than I did.

I went to my credit union and it is a great deal! I have no mim, and I get charged a little over 1 percent. I bought my equipment (about 250) so its mine if I ever want to sell it if I want to stop taking credit cards. I have found people are more willing to pay higher prices for cakes if they can just charge it, and also I get stuck less as I now can require payment up front, no dealing with checks and that mess. I love it. 85% of my sales are on credit card.

you guys use paypal and google for your storefront checkouts?

i thought they were only for online transactions?

Hate to burst your bubble....but that's the cost of doing business if you want to accept credit cards.


For the Pay Pal/Google Checkout Question...
There is an option where you can send electronic invoices, or "make a payment" buttons so you don't have to exclusively sell products online in order to use that function. It's so convenient!

What about the paypal reverse payment issue? I have been using Paypal, but I recently had someone tell me a story that is scray. She said she sold items on Ebay and was paid through paypal. So she mailed the items without a tracking number and after she sent the buyer an email stating she had mailed the items.

The buyer immediately reversed the charges. My friend has been unable to get her money back from ebay or paypal because they say she should have had a tracking number from the post office.

How would we get a tracking number to prove they really did consume our cakes?

Julia

I'm pretty sure that you only need tracking numbers when dealing with eBay auctions.

I wonder if you use PayPal Pro if you will have more say in a chargeback scenario.

I was stuck once with a charge back item. They did not ask me any questions what-so-ever and just took the money out of my account. They can and do. Later my account was frozen BY THEM and I could not access anything. I ended up closing the account anc calling it a loss. Fortunatly it was a small loss. Some people get stuck for thousands.

I set up the pay pal for this one order but I think I like the idea of the credit union. I'm going to check that out!!

Thanks everyone!

I definitely would have lost orders w/o PayPal and being able to take CC. It's worth the 2.9% fee to do it. I've seen some websites charge people the fee to use PayPal, but right now I'm just considering it the cost of doing business.

I actually just stopped using Paypal because I have been a victim of fraudulent bank account access. I had to put a stop payment for Paypal because they kept trying to take money out of the wrong account. I'll admit I used it for MANY years with no problems - my husband has been selling on Ebay since before we met! It's great for purchases through ebay but that will be the only way I would ever use it again.

I recently changed all of my banking information and updated it through Paypal. The small deposits went through and I confirmed the account so I know that they had the correct information. A week later I didn't close the previous account but moved all my money to the new account and Paypal processed some transactions from the WRONG account. Even though I had deleted that account from my Paypal account they still had access to it. Well, because I had moved my money to the new account - there weren't any funds available - AND, because I wasn't using that account anymore I wasn't monitoring it either because I did my due diligence and changed everything over.

Well, Paypal not only tried to process it once - they did it FOUR times which my bank charged me $30 for each transaction. Needless to say I called Paypal and they didn't seem to care and tried to argue with me that it was impossible for them to process to an account that was removed. Well my friends, I am not crazy and I have the proof to back up what I was complaining about so I immediately put a Stop Payment on Paypal and removed any hint of accepting online payments through Paypal from my website. If people want to pay via credit card - they can do it over the phone or come into my shop!

I use a company called Chase Paymentech - I think they are great! I did not have to buy my equipment, although I did. It is possible just to rent it though for a monthly fee. The percentage is less than 3% so I feel it's a pretty good deal. Maybe not the best but certainly better than Paypal in my oppinion...

Tammi

If I had a storefront I would use another merchant service. I can't afford the charges and monthly fees plus equipment for a credit card use maybe once a month.

I've had nothing but problems with Paypal. Google "paypal sucks", and you'll find endless horror stories...I'm not alone!

I've used google checkout, and like it. Another cheap option is ccnow.

PayPal recently introduced a Virtual Terminal that's basically a card reader that allows you to do face-to-face transactions. Beware - the fees are quite expensive.

Unfortunately, PayPal often sides with the buyer in any kind of dispute. I used to sell on eBay a lot (not cake-related) and got burned a few times with unscrupulous people. Grrrr.

http://www.2checkout.com (online transactions only) and http://www.propay.com (online and in-person sales) are decent alternatives but they also have fees associated with them.

I just starting using PayPal in the last week or so. After researching my options, it seemed the best route for me. I do not do enough business yet to justify monthly fees from the credit card companies. The majority of my payments come in the form of checks handed to me in person, but I do receive a fair number of orders from out-of-town for gifts to be delivered in my city. In those cases, I have started using PayPal so that I don't have to wait and worry about checks arriving in the mail. A few too many customers took longer than I thought reasonable to pay me, so now I require PayPal payment for all out-of-town orders before I begin baking.

This is a sore subject for me today I was with a company that I liked a lot and got talked into signing up with First Data. It has been a disaster to say the least! I won't go into a lot of the details but have had problems since day one and have written proof of all the bs I have had to deal with. I am going into my bank tomorrow with my proof in hand(have been letting them in on the ongoing problems) and since they are affiliated with the merchant service they are going to help me get out of the contract! Wish me luck, I was in near tears this morning and my banker got my wrath not to mention a few choice words. So whatever you do...............research, research, research. Don't sign a contract and don't lease your equipment! There are reputable companies out there and taking credit cards especially if you have a storefront is a part of doing business now a days. Almost everyone pay's with a credit or debit card and you will loose business if you don't have a way of accepting them. Just be careful and know what you are getting yourself into before you sign on that dotted line. NO MATTER WHAT BS THEY TELL YOU. Call several merchant service companies and do your homework.

I just ran across this program that someone talked about on an old craft blog I was looking at. She seemed happy with it. I haven't done any research, just wanted to post it here for whoever wants to have at it.

http://www.thompsonmerchant.com/services/Touch-Pay/Touch-Pay.html