Posted by LKT/CA on 6/19/08 8:06pm
Msg #252142

Merchant Account to Accept Credit Cards

I'm considering opening a merchant account to offer customers the convenience of paying by credit card. It will NOT be via an online company like PayPal as they like to tie up funds by suspending the account due to "suspicious activity" (which they never prove) and make me jump through hoops to get it released. I've had it with them and closed the account. I've looked in to wireless units I can use in the field and their costs and fees. My regular notary work is actually increasing and will support the lease charge of the unit it can be bought outright anytime during the lease period. Airtime seems pretty universal at $15 per month. No application, setup, annual, or monthly minimums and it's month to month so there's no contract other than leasing the equipment or I could buy it outright.

Do any of you have a merchant account set up this way where you accept credit cards in the field via a small wireless handheld type unit?

What are the cons and pros you've encountered?

Do you believe that this convenience offered increases your business or makes no difference one way or the other?

Appreciate your feedback.

Reply by Sir_Lawrence on 6/19/08 8:15pm
Msg #252144

I do. American Express is $5.95 per month, and Discover is also extra. I pay $35 per month. Honestly, I use it for another business my wife runs (Photography). I have never had anyone ask to pay me via charge in the Notary Business. Give it a try, if it gets too expensive, just close it. Good luck either way.

Reply by Bob_Chicago on 6/19/08 8:40pm
Msg #252150

Don't know anything about it, but I believe that SAMS and..

Costco offer the service to members.

Reply by CaliNotary on 6/19/08 8:48pm
Msg #252152

"Do you believe that this convenience offered increases your business or makes no difference one way or the other? "

I can't see it possibly increasing business enough to even cover the cost. You're not going to get companies giving you loan signings to pay by credit card, and I don't see how you'd get an increase in non loan signing notarizations because of it. You might get people who would have otherwise paid cash use a credit card, but I don't think you'll get any additional business because of it.

Reply by Becca_FL on 6/19/08 10:15pm
Msg #252161

Cali is correct.

I have offered credit card services since 2004 and I've had just one SS pay me via CC due to late payment and threats of court. And, only twice have I had a general notary client pay via credit card for elderly parents here and payor/adult child living out of state....Wait, now that I think about it, I DO get most of my wedding deposits via paypal too.

I have used paypal with no problems since 2004. LKT, you must have been logging into your paypal account with multiple computers to cause such a glitch.

Reply by desktopfull on 6/19/08 10:57pm
Msg #252163

Paypal can definately be more trouble than not in many ways.

I also cancelled my account after they raided it and took over $700.00 out on a wrongful transaction. Then they spent 6 months giving me back my money after they admitted it was taken in error and charged me a fee for giving me back my money. Per my attorney, use a separate bank account for all Paypal transactions and pull the money out and put it in your regular account never leaving more than $50.00 in the account.

Reply by Becca_FL on 6/19/08 11:28pm
Msg #252166

Re: Paypal can definately be more trouble than not in many w

"...use a separate bank account for all Paypal transactions..."

Duh!?

I've used paypal for many years with absolutely no problems...Just be smart about it.

Reply by desktopfull on 6/20/08 11:45am
Msg #252265

I had no idea when I opened a Paypal account to accept

payments with ebay, that even when ebay knew my account had been spammed (I notified them immediately) and they agreed that the auctions posted against my account were fraudulent, but they still took the money out of my account through Paypal anyway. They were notified before they took the money and still removed the funds from my account knowing these were wrongful charges. Also, I never expected to spend six months, over 12 hours on line with them, and have to send 3 letters from an attorney in order to get my money given back. What's even worse is that Ebay owns Paypal, basically they got a 6 month interest free loan of my money and then charged me a deposit fee when they were finally forced into giving it back. I'm glad to hear that not everyone gets burned by Paypal.

Reply by Philip Johnson on 6/19/08 10:04pm
Msg #252158

What's the cost per transaction?

I don't take credit cards for my other businesses, because once you start adding everything up it's not worth it for a small business. You also got to think that just like Paypal, credit card users can reverse charges and it ain't a picnic working that out with the bank either.

Reply by LKT/CA on 6/19/08 11:41pm
Msg #252167

Re: What's the cost per transaction?

The cost per transaction for one company is 1.59 percent plus 20 cents per credit card transaction if I swipe, 35 cents if I manually enter. For debit cards 1.11 percent plus 20 cents if I swipe, and a flat 35 cents, no percentage if I pin is entered. Batch header is only 30 cents each. The only problem with this company is to get the cheapest lease on the terminal which includes the airtime, they want a 4 yr lease which I'm not willing to commit to.

Another company has slightly higher fees but the lease time is shorter, lease fee per month is smaller and the cost of the machine outright is cheaper (same machine too). This convenience would be for non loan notary work. Loan signing calls are mostly lowball ones - which get refused - and those are still invoiced. When a person doesn't have to part with the cash in their pocket (go by the ATM or bring their checkbook) and can just throw the notarizations & travel fee on their credit card, maybe, just maybe they'd appreciate this convenience.

Reply by LKT/CA on 6/19/08 11:45pm
Msg #252168

Oops! Lowball offers refused and NOT invoiced n/m

Reply by JanetK_CA on 6/20/08 12:32am
Msg #252172

Re: What's the cost per transaction?

Individually, the charges don't seem like much. However, if you have cc capabilities, some clients you would have had anyway may choose to use it, too. I, too, seriously doubt it will bring in much, if any, new business. So it just chips away, little by little, at already dropping profit margins. jmo

Reply by CaliNotary on 6/20/08 2:06am
Msg #252183

Re: What's the cost per transaction?

"When a person doesn't have to part with the cash in their pocket (go by the ATM or bring their checkbook) and can just throw the notarizations & travel fee on their credit card, maybe, just maybe they'd appreciate this convenience."

How much non loan signing notary work are you getting right now? It makes absolutely no sense for you to pay out of your pocket for convenience for something that just brings in a few occasional bucks here and there. Why do you care if people have to run to the ATM before they come to you?

In the 5 1/2 years I've been a notary I've never been asked a single time about accepting credit cards. That tells me all I need to know about the need for credit cards in this business.

Reply by LKT/CA on 6/20/08 4:19am
Msg #252184

Re: What's the cost per transaction?

I was just considering the idea of it.

Reply by Donna LaBelle on 6/20/08 10:27am
Msg #252225

I have one for my craft business it is only $8 month and before I got it, ppeople asked me if I took credit cards all the time and since I got it, I havent even used it at all.