Posted by Cheryl Anderson on 7/21/07 11:06pm
Msg #201179

Using Credit Card Machines

Has it ever been mentioned or would it even make sense to use a credit card machine in order to accept payment from signing co's or TC's to defray the "wait and see" if one was to get paid? I am sure there must be reasons that this isn't practiced, and would like to know from the experienced notaries why this wouldn't make sense. I work full time at a type of business that accepts credit card info by phone, but would this be too much trouble for the co's or perhaps too much of a fraud liability due to the nature of this business? I don't post much, but I do read as much as I can here, but haven't found too much on this subject, and perhaps it is because I am way off base or too new to realize the impracticality of the use of credit card machines. Thank you MUCH in advance.

Reply by JanetK_CA on 7/21/07 11:58pm
Msg #201182

For one thing, the actual credit card readers cost money (you have to buy or lease them) and then as the person accepting payment via credit card, you have to pay a percentage to the appropriate credit card company. One more way to shave off a bit more from our decreasing profit margins - but I suppose it's better than getting stiffed completely. However, I have no idea how many - if any -- TCs or SSs are set up with company credit cards they can use for vendor payment.

Reply by Debbietax_CA on 7/22/07 12:02am
Msg #201183

I am sure there are many reasons, the signing co's will probably rarely have a credit card for those expenses, or other reasons such as that, but the primary reason I can immediately see is the cost of maintaining an account with a credit card company. It will usually cost you a minimum of $20 to $30 a month, from what I have seen, just for the opportunity to process these cards. If you do not have enough business come through, you will still have to pay that. That makes it much too expensive for most small non-retail businesses, especially home based businesses. Paypal is one way around this though, so it is not uncommon to have a paypal acct that you can require a payment to be made to if you are not sure they are going to pay you properly. That might work.

Reply by BarbaraL_CA on 7/22/07 12:27pm
Msg #201197

Because of the expense, I won't open a credit card acceptance for business. However, I do have a PayPal account for my business and do take credit cards thru PayPal. I charge an additional 3% to a client that uses a credit card because PayPal does charge a minimal fee. However, I don't have lease costs for equipment which saves a bundle! You can also invoice your clients through PayPal.

Reply by LJ on 7/22/07 2:40pm
Msg #201204

Having to lease a credit card machine in another business we had, believe me, we can't afford it to accept payments for closings. The cost can be very very high. It's not worth it at all.

Reply by LJ on 7/22/07 2:50pm
Msg #201205

If I remember right we paid 2 different fees monthly. One was $65 and the other was $50. We paid this no matter if we did 0 or unlimited activity. Then, the fee for using the machine was .0275% of the dollar amount.

Reply by Cheryl Anderson on 7/22/07 2:52pm
Msg #201206

Thank You very much!

Wow...Paypal-what a no-brainer...that makes a lot of sense. And thanks to all who responded!