Credit Card/paypal Money Processing Fees-- Do You Eat This Cost Or Charge It Back To Your Clients?

Business By ittybittybakery Updated 14 Feb 2018 , 12:29am by B.E.Sweetcakes

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ittybittybakery Posted 5 Feb 2018 , 8:08pm
post #1 of 6

Wondering if people are using PayPal business accounts to get paid for their cakes. And if so, how do you account for the 3% fee they charge.  Are you marking up your cakes in your initial quote to your customers, adding it as a separate fee/line item in your invoices, or just eating that cost.  In NYC I can charge appropriately for my time (which is to say I charge a fairly high rate for my cakes) so 3% can be quite significant to me. 

Until now I've been using my personal paypal account when customers ask for a fast/easy payment method and don't want to deal with checks or cash.  But, as you likely know, when using a personal paypal account you aren't charged fees for 'friends and family' which most of my customers select when paying me this way (many are friends of friends but that's besides the point).  Anyway, trying to get more buttoned up and professional with my systems and was thinking of using PayPal business for invoices, etc. but don't want to lose $20-$30 a cake due to fees.  

Thoughts? What are most people using these days?  Are there other options?  Is using Venmo a no no? That's another friend-to-friend payment system popular among my clients and again I've used my personal account to accept funds in a pinch.


5 replies
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stampingchrisd_91 Posted 6 Feb 2018 , 5:50am
post #2 of 6

I use square and just eat the cost. I tried setting a minimum $amount to use a card at my markets but ended up losing sales.  I probably will start adding the fee to those that don’t pay in person since the fee doubles when you have to input manually.

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OHaresTstyTrts Posted 13 Feb 2018 , 6:26pm
post #3 of 6

I'm using square and just eat the cost at the moment. It has made my life exponentially easier, especially since we are in a tourist area. I deal with clients who live out of state and can't get payment to me otherwise. I opted for Square over PayPal business due to their horrible refund policies. They will refund a costumer, even if the customer has a contract with that business stating otherwise, almost 100% of the time. I have read some horror stories. I am starting to do a lot of weddings and people can over spend. They will try to beat down vendors after the fact, to get money back. I don't want to deal with that. I don't want to provide a wedding cake to only have the whole thing refunded to the client because PayPal doesn't protect their business clients at all.

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-K8memphis Posted 13 Feb 2018 , 8:44pm
post #4 of 6

it should be figured into your base price -- why not

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youngj Posted 13 Feb 2018 , 11:33pm
post #5 of 6

I started to use Venmo, for the reason I didn't want to be charge fees from pay-pal. I have found that most people have one or the other. You could always ask people to click on "friends and family".

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B.E.Sweetcakes Posted 14 Feb 2018 , 12:29am
post #6 of 6

You could also look into using Zelle. It goes through your bank and there are no fees, I don’t believe. 

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