New Client Want To Pay With Credit Card...

[CityGarden]

I have a new client who plans to enroll and is asking to pay by credit card. I typically accept payments via Zelle (Bank Transfer) and sent her a payment request thru Zelle.

Her response today...

Hi Ms. Teacher!

My husband has been trying to make the payment thru Zelle but it seems like we don't have any of the listed bank accounts. Would there be a way we may pay by credit card?

I do want them to enroll but I am torn about the fee to accept credit cards (It would cost me $30-40 per family monthly). Three options I see:

1) Tell her we are only set up to accept bank transfer and checks and let her give me a check.
2) My website builder makes it very easy to accept payments online and is the same cost as Square Up the nice part is that would be built right into my site looking more professional
3) I could use SquareUp (which searching on here seems to be liked) or something similar that allows invoices/tracks payments, etc. I liked the idea of being able to easily show/see where my income comes from, etc.

Thoughts? WWYD? Any options I am missing? How would you respond? They are an international family who recently moved here so they very well may not have a US based bank....

[PB&J]

We took a hit with each payment, and already offer certain other discounts (and of course it was the family who took those other discounts that hopped on board for this one - to earn credit card perks). There are so many payment options in this technical age that we stopped accepting credit cards in order to avoid the vendor fee!!

[Mike]

I use Square and Paypal for payment options in my businesses. There is the small fee doing it that way, but for me, the various payment options are worth it. I've seen some businesses accept credit cards but with a small fee added due to the cost. Maybe they're willing to pay an extra 2-3% to pay by credit card.

[PB&J]

Originally Posted by Mike

I use Square and Paypal for payment options in my businesses. There is the small fee doing it that way, but for me, the various payment options are worth it. I've seen some businesses accept credit cards but with a small fee added due to the cost. Maybe they're willing to pay an extra 2-3% to pay by credit card.

That is a good idea. If they need time to establish themselves, having them take on the extra fee is a good compromise.

[LysesKids]

Originally Posted by Mike

I use Square and Paypal for payment options in my businesses. There is the small fee doing it that way, but for me, the various payment options are worth it. I've seen some businesses accept credit cards but with a small fee added due to the cost. Maybe they're willing to pay an extra 2-3% to pay by credit card.

You can only get away with that in certain states, so check the laws in yours for taking CC's... You could for future just raise fees enough to cover the extra 3% & offer a discount for cash payers. And the fees are deductible on taxes next year - it's part of doing business. I am in a state that allows, but I was in one that doesn't allow the 3% add on so I understand how to work it both ways

[Jodik]

I have been using kidkare and they have the option to make the parents pay the fees associated with credit cards etc. Money takes some time to make it into my account though.

[Mike]

Originally Posted by LysesKids

You can only get away with that in certain states, so check the laws in yours for taking CC's... You could for future just raise fees enough to cover the extra 3% & offer a discount for cash payers. And the fees are deductible on taxes next year - it's part of doing business. I am in a state that allows, but I was in one that doesn't allow the 3% add on so I understand how to work it both ways

Good point.

[CityGarden]

Originally Posted by Mike

I use Square and Paypal for payment options in my businesses. There is the small fee doing it that way, but for me, the various payment options are worth it. I've seen some businesses accept credit cards but with a small fee added due to the cost. Maybe they're willing to pay an extra 2-3% to pay by credit card.

Originally Posted by LysesKids

You can only get away with that in certain states, so check the laws in yours for taking CC's... You could for future just raise fees enough to cover the extra 3% & offer a discount for cash payers. And the fees are deductible on taxes next year - it's part of doing business. I am in a state that allows, but I was in one that doesn't allow the 3% add on so I understand how to work it both ways

Eek I read Mike's post and thought it was a good compromise so I gave the parent the option of bank transfer or check without fee or cc with 2.9% fee..... I am hoping she will figure out either bank transfer or write a check but I gave her all three options. I have not yet heard back from her yet.

Then I saw LysesKids response and I am in a state that does not allow cc surcharge fees. I cannot now after the fact increase my rates.... so either I have to say no to credit cards or be willing to take the hit with each payment - about $30-40 a month per enrolled child paying by cc. I understand that down the road it would be a tax write off but on a monthly basis that could add up to be a significant amount.

Mike do you like Square or Paypal better? My website has a partnership with Stripe which I think is part of Paypal.... but on past threads here it seemed those who did take cc and did not mind used Square Up.

[284878]

Venmo is free and compatible with any bank, if they want to sign up with a credit card, they get charged the fee I believe.
Venmo transfers money to my account in less than 24 hours. They are also owned by PayPal.

[Pestle]

I won't use Zelle because of questionable security; I'm with a regional bank instead of one of the major national banks that Zelle directly supports. My brother tried to send me money with Zelle earlier this year, and I just cut it as a loss rather than give them my banking info.

[Cat Herder]

Originally Posted by Jodik

I have been using kidkare and they have the option to make the parents pay the fees associated with credit cards etc. Money takes some time to make it into my account though.

Same. $8 a month for everything.

Credit cards actually go into my account 4 days faster than ACH. Parents pay the fee.

ACH payment time has been absurd, though. Comes out Monday, makes it to my account Friday, not available for use until the next Monday. 7 days.

If it were not for auto-invoicing, attendance, meal counts, menus, expenses, and all my tax records in one place I'd have moved on. Right now they are the only game in town.

[LysesKids]

Originally Posted by Pestle

I won't use Zelle because of questionable security; I'm with a regional bank instead of one of the major national banks that Zelle directly supports. My brother tried to send me money with Zelle earlier this year, and I just cut it as a loss rather than give them my banking info.

See, I have the same issue - both my bank (in AR/MO only) and my Credit Union are small local and I don't trust giving out my bank info. I had bad issues with PayPal years ago and my bank account was wiped of a good amount over something not my fault, so I won't deal with anything they have a hand in either

[Baby Beluga]

Originally Posted by LysesKids

See, I have the same issue - both my bank (in AR/MO only) and my Credit Union are small local and I don't trust giving out my bank info. I had bad issues with PayPal years ago and my bank account was wiped of a good amount over something not my fault, so I won't deal with anything they have a hand in either

You don't have to give out your bank info with Zelle. The payer just needs either your email address or phone number associated with your bank account to add you as a recipient/send money.

[Mike]

Originally Posted by CityGarden

Mike do you like Square or Paypal better? My website has a partnership with Stripe which I think is part of Paypal.... but on past threads here it seemed those who did take cc and did not mind used Square Up.

I used to prefer Paypal, but a few months ago they stopped supporting the Paypal debit mastercard here in Canada, so now I have to manually transfer Paypal money to my bank account which takes 2-3 days. Square is automatic and goes in 1 or 2 days later. To me they're both pretty much the same.

[Meeko]

Venmo! Love, love, love it! And it's FREE!

[MarinaVanessa]

Originally Posted by Pestle

I won't use Zelle because of questionable security; I'm with a regional bank instead of one of the major national banks that Zelle directly supports. My brother tried to send me money with Zelle earlier this year, and I just cut it as a loss rather than give them my banking info.

Interesting. Zelle is actually very secure. Several major banks use it and it's built right into their money transfer system online and in their banking apps. Chase bank, Bank of America, Wells Fargo etc. for example.

Originally Posted by Meeko

Venmo! Love, love, love it! And it's FREE!

Just be careful, I know one provider who had her account with Venmo suspended for going against their user agreement for using it for a business vs using the free services for personal use. She's a large daycare and had more clients though so maybe that's what flagged her. Two other friends of mine had their accounts closed for the same thing but they were full-blown using Venmo to accept payments for their t-shirt and sign business.

[LysesKids]

Originally Posted by MarinaVanessa

Interesting. Zelle is actually very secure. Several major banks use it and it's built right into their money transfer system online and in their banking apps. Chase bank, Bank of America, Wells Fargo etc. for example.



Just be careful, I know one provider who had her account with Venmo suspended for going against their user agreement for using it for a business vs using the free services for personal use. She's a large daycare and had more clients though so maybe that's what flagged her. Two other friends of mine had their accounts closed for the same thing but they were full-blown using Venmo to accept payments for their t-shirt and sign business.

Pestle & I have small local accounts... not a major bank plus you couldn't pay me enough to go back to BoA or Wells Fargo after issues several of my family & I had years ago

[MarinaVanessa]

Originally Posted by LysesKids

Pestle & I have small local accounts... not a major bank plus you couldn't pay me enough to go back to BoA or Wells Fargo after issues several of my family & I had years ago

You can use Zelle without banking at a major bank. I meant that Zelle has to be secure otherwise banks wouldn't use it. Well, let me clarify further ... if they don't bank at a bank that uses zelle they can download the Zelle app and enroll using their debit card if it has the visa or master card logo. If not, then I'm not sure how it works but to send or receive money you only need one person to have a Zelle account.

[LysesKids]

Originally Posted by MarinaVanessa

You can use Zelle without banking at a major bank. I meant that Zelle has to be secure otherwise banks wouldn't use it. Well, let me clarify further ... if they don't bank at a bank that uses zelle they can download the Zelle app and enroll using their debit card if it has the visa or master card logo. If not, then I'm not sure how it works but to send or receive money you only need one person to have a Zelle account.

I'll stick with Square thank you ... never had an issue in all the years I've used it; on the plus side I have the chip reader & can take Apple pay too which around here is unheard of for a daycare lol. I have had numerous clients love the fact they can swipe the CC if they don't get paid by the time fees are due here, where as Zelle, you have to have the $ in your account first to transfer/run debit Card thru the App

[MarinaVanessa]

Originally Posted by LysesKids

I'll stick with Square thank you ... never had an issue in all the years I've used it; on the plus side I have the chip reader & can take Apple pay too which around here is unheard of for a daycare lol. I have had numerous clients love the fact they can swipe the CC if they don't get paid by the time fees are due here, where as Zelle, you have to have the $ in your account first to transfer/run debit Card thru the App

Oh I hear you. I personally use Square for my daycare. It's much more convenient. I hated KidKare (not sure if there have been any improvements this year) and Square was a great alternative as far as invoicing and collecting payments go.

[rosieteddy]

I would not change any thing.Let them do what your other clients do or pay cash.They can get a cash advance through the credit card if they want.Why mix everthing up for one family.

[Blackcat31]

Originally Posted by rosieteddy

I would not change any thing.Let them do what your other clients do or pay cash.They can get a cash advance through the credit card if they want.Why mix everthing up for one family.

This