Debit & Credit payments from clients

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#1
philly  
Posts:
1722
Joined:
14-Sep-2014 4:48am
Location:
New York
I am thinking about accepting credit card and debit payments from clients.
Does anyone in the group accept online payments and has it helped their cash flow ?
 

#2
Posts:
3694
Joined:
21-Apr-2014 11:24am
Location:
North Carolina
I take cards via Square and always have. I have no idea if it helps cashflow because I have nothing with which to compare it. However, I find it very convenient not to have to go to the bank or deal with my bank's app to pay checks in electronically. To me, it is worth the fee, which ranges from about 2.7% to about 3.5%, depending on whether I do it via machine in my office, via an online invoice or keying the card into the web browser (I have only done that once as it is much more expensive).

About 40% of my fees are paid by credit/debit card. I find businesses use them more than individuals. I do not accept dollar bills or multiples thereof and having the machine has allowed me to get paid there and then.
 

#3
Posts:
8156
Joined:
4-Mar-2018 9:03pm
Location:
The Office
How do you currently accept payment? A physical check only?

I don't know that accepting online payment helps with cash flow, but it is much more convenient (less friction) for the client.

I accept paper check, e-check, and credit card / debit card from the big four processors, as well as some esoteric options like Apple Pay through my QBO invoicing system.

My clients overwhelming choose to pay online with debit or credit. I don't tack on a surcharge but rather assume everyone will pay with a card and internalize the additional cost into the client's fee. I think clients appreciate this -- that there's no additional cost (at least no visible additional cost) to pay me via card. Many prefer to pay by card so they can get rewards points.

Plus it's 2021...the only places I know not accepting card are some hole in the wall restaurants that are probably committing tax fraud.
 

#4
Posts:
2468
Joined:
24-Apr-2014 7:54am
Location:
Wisconsin
Taking cards was one of the first things I did; I think I got a Square account right after my first tax season was done -- I literally had no idea if I would have one client or twenty so I held off until the summer to take cards. Square works pretty well for what I need it for, and as I have more virtual-only clients it's a lot more convenient. I include $15 into the invoice for virtual-only tax clients to pay for eSignature and the increased credit card utilization compared to the clients I deliver face-to-face to, of which about half are paid by check or cash.
 

#5
Posts:
835
Joined:
1-Sep-2020 2:47pm
Location:
845-NY
I have not started accepting credit cards (directly) yet.
I currently accept checks, Venmo and Paypal which does have a credit card payment method option.
Venmo is starting to add in a processing charge for goods and services (this month I believe), and paypal charges 3% if the client indicates the payment is for goods or services.

I have a peer in the area who researched and started using cpacharge.com
I would likely go that route when I start accepting CC's.
$10/month,
$2 +0% for echecks/ach
1.95% + 20 cents for V M D
3.5% + 20 cents for Amex
2.95% + 20 cents for specialty cards

you get your own "online portal" and a link that you can have in your email signature to pay your invoice online.

reasonable rates and $120 a year for the convenience of not having to deal with running CCs, etc, just let the client do the end work. I believe there is an option for you to input the payment info for the client if necessary if you take the number over the phone.
 

#6
Posts:
8156
Joined:
4-Mar-2018 9:03pm
Location:
The Office
I have heard good things about CPAcharge, but I can't find a compelling reason to switch from QBO invoicing and payment to them.

Most of the providers have roughly around the same fee level, so there's not really a lot of competitive advantage either way.
 

#7
Posts:
2612
Joined:
24-Jan-2019 2:16pm
Location:
North Shore, Oahu
I have used Chase Paymentech to accept cards and liked it.

Now I use Bill.com with Global Payments as the merchant and, it's slightly buggy, but overall I really like it. It's a HUGE time saver.

This way everything is automated, including keeping track of who has paid and the sending of reminders.

Clients can mail a check, pay via e-check (ACH), or pay via credit card. I do not charge any surcharge.

I feel like it's 2021 and I should eat the merch fees. Cost of doing business.

I set up my bigger ticket business clients to pay via ACH on bill.com (automated) to reduce my merch fees.
 

#8
smtcpa  
Posts:
515
Joined:
28-Jul-2014 5:16am
Location:
Richmond, VA
Started accepting credit cards and ACH via Intuit on QBO 7-8 years ago and it has vastly improved cash flow. I can't remember a bad debt since then. And it saves a ton of time since QBO invoices the client, sends reminders, and accepts and records the payments automatically. I cannot imagine a business not accepting credit cards.
 

#9
Posts:
2887
Joined:
21-May-2018 7:50am
Location:
Northern MI and Coastal SC
I am very seriously contemplating a policy of NO CHECKS and enforce it, potentially, with a $25 fee for paying by check (already checked with my lawyer and spoke with CPAs that already do it). Almost all of my payments are electronic and I will HAPPILY pay the fees to reduce float time and encourage prompt payment. Many of my clients pay their invoices the same day they receive them, which is fantastic for cashflow. Outside of one client I have chosen to grant a lot of leniency with, none of my clients take longer than two weeks to pay but like I said, many pay same day or within a few days of invoice date.

I just switched to a new A/R management and payment system that also acts as a client account portal. It directly integrates with Quickbooks (QBO and QBD), and while the service itself has a monthly fee, my overall merchant fees will be less than 2/3 of what they were with Intuit. I do maintain an Intuit Merchant Account for various reasons, such as their 1 day settlement for credit/debit/eCheck vs. 4-5 days for ACH. But Intuit's fees with eCheck/ACH have become way too high.

So yes, if you are not accepting electronic payments already, get on it ASAP. I, like others, have not had a single bad debt, plus I just manage my clients well including being selective in who I take on.
 


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