credit card processing companies--which one?

[huggytree]

im looking into being able to process credit cards...i dont have a smart phone

what service company is best?

i will most likely only be using it a few times a month

thanks

[Harold Mansfield]

If you don't have a smart phone and don't plan on getting one, then that cuts down your options right there.
Do you plan to pay for some type of terminal to run the cards? Or are you trying to also avoid that expense?

These are actually important questions. If the answer is "I dont plan on getting a smart phone and don't want to pay for a terminal to run the cards", then that cuts down my suggestions tremendously. Actually, in that case I don't have any.

To accept cards mobily, you have to have a compatible mobile device. And I don't see renting or buying a terminal to run the cards just to take them a few times a month. I don't know what they cost, but surely upgrading your phone is more cost efficient and you get a new phone with more technology that you can use for other business purposes...GPS Directions, Scheduling, Email, and so on.

If you are going to be calling them in (the CC#'s) , I'd say don't even bother doing it. That's not very conveneint for you or the customer. Kind of defeats the purpose.

[MyITGuy]

eborg touched on every point I would make.

Just some thoughts for you:
To work with a merchant, your likely going to pay $20+ a month in fees alone just to have an account. This wouldn't be ideal if your volume is low.
To work with a merchant on a mobile basis as you are, you will have to purchase/lease the mobile terminal, and will likely incur additional charges for the data that this devices uses, again not ideal if your volume is low

With a service such as square, paypal or etc you don't have a fixed monthly fee for the service, but you do need a smart phone. - perfect for your usage...however there is the cost of the phone and data plan...but this wouldn't be limited to just credit cards. You could use it as a GPS to find job sites, have customers sign quotes/invoices electronically, look up parts right from your phone and etc...

[vangogh]

I'll echo what Harold said. If you want to accept credit cards you're going to need some way to process the card information. I would think the 2 easiest ways for you to do that would be through some mobile device or entering the information when you're back at your computer. To me it makes the most sense, given your business, to have something with you to swipe the card.

There's a company called Square (https://squareup.com/) that makes it easy to turn either an iPhone or Android phone into something that can accept credit cards. The square reader is free and the company charges 2.75% of the transaction, which is a good rate. They charge more if you don't physically swipe the care I think. There are other companies offering similar things.

The companies behind accounting software like Quickbooks also offer their payment processing. Intuit offers payment processing (http://payments.intuit.com/) and also offers a reader for your phone like square.

Your other option is the typical merchant account you like Authorize.net that you get by going through a bank. Without a terminal to take a car, you'll likely need to login to the merchant's site and processing things through it.

I really think a smartphone/reader combo will be your best bet since it will allow you to easily accept cards while you're on the job. If you really don't want that option I'd look into the account software company route.

[BNB]

For your business, I'd think PayPal would be the best bet.

PayPal Standard is free and 2.9%. Depending on how much you are charging, if you do over $10,000. If you swipe the cards, it's just $5/mo for PayPal advanced and if not swiping, you can just send them an invoice via paypal. To type the card information in manually, you would need the $30/mo account.

[Steve B]

There's no reason you absolutely must process them immediately - so don't worry about getting a smart phone just for this purpose. I write down the credit card information on the invoice - give it to my wife - and a few days later she logs on to the website and processes them. I probably have done 2 or 3 a week for the last 7 years this way without a problem. I've had a small handful of cards declined over the years and we just called the customer and they gave me another card to use and it worked fine. Keep in mind, you and I are different from all these internet guys. We KNOW where our customers live. Credit cards were around for decades before cell phones were even invented.

[Harold Mansfield]

You can set up a regular Pay Pal account at anytime if all you need to do is send email invoices. There is no min balance. But there is a per transaction fee.
But that's just a standard account and doesn't allow you to take cards onsite without getting the additional services and the card reader to plug into your phone.

[Harold Mansfield]

It's also important to check that, if you do get a smart phone for the purposes of utilizing one of these mobile payment services, that you make sure that you get a phone that is compatible with the app. Just discovered that the Pay Pal app isn't compatible with my Android phone, even though I'm running a compatible version of the software.

That would have been a real bummer if I got the phone expressly for that purpose.

Here's a list of compatible phones for Pay Pal's mobile app:
https://www.paypal.com/webapps/mpp/paypal-here-compatible-devices

[huggytree]

There's no reason you absolutely must process them immediately - so don't worry about getting a smart phone just for this purpose. I write down the credit card information on the invoice - give it to my wife - and a few days later she logs on to the website and processes them. I probably have done 2 or 3 a week for the last 7 years this way without a problem. I've had a small handful of cards declined over the years and we just called the customer and they gave me another card to use and it worked fine. Keep in mind, you and I are different from all these internet guys. We KNOW where our customers live. Credit cards were around for decades before cell phones were even invented.

which service do you use Steve? is it paypal also?

the Smart phone idea is a no....my phone takes a beating...i used to break phones a few times a year...im crawling around, smashing into things, pipes are falling into me....i finally found the most heavy duty phone made...its by Motorola and is even water proof....it also has a very loud ring, so i can hear it on a job site...

smart phones are larger and would be destroyed in my pocket....my hands are full of poop/dirt all day long...my dirty fingers would wreck the touch screen

i like the idea of Paypal or whatever Steve uses....i get the info, go home and type it in.....its probably going to be 2-3 a week

thanks for all your opinions!!!!!

[Steve B]

We must use a merchant account. I'll see if I can ask my wife the details - I really don't handle the cards once I get the info. from the customer.

[Harold Mansfield]

If you don't run them right away, how do you get past not having a signature? Also, how do you trust that you have the correct information? There's money on the card? And so many other things that would make me uneasy not collecting my money immediately at the end of the job.

I've heard and worked at businesses that merely checked for funds and didn't actually run the complete transaction, but
You actually run them later?

[Steve B]

Yes, I actually run them later - sometimes a couple weeks later. A signature is not required (I've been buying things on-line for many years without a signature and prior to the internet I bought things over the phone with my credit card). I know I have the correct information because they hand me their card and I copy the information down. I take a little risk by not checking the available credit on the spot, but it's never been a problem. Remember, Huggy and I know where they live and they know we know where they live. We also deal with people that are homeowners (not renters) and usually have nicer than average homes. But, every once in a while I'm hired by someone that does not appear to have a lot of money - that has not been a problem either. I've never not collected on an invoice in 7 years. Don't forget checks can bounce - so unless he's using some form of on-the-spot Telecheck - he's already taking as much or more risk anyway.

I know for sure that I've sold more because I've given people the option of using a credit card. I even allow them to "finance" their purchase by promissing to split the payment over 2 or 3 different months. This financing option has helped close the deal on a handful of jobs every year. The profit from these jobs alone more than pays for the credit card processing fees for the year for everyone else.

[Harold Mansfield]

Remember, Huggy and I know where they live and they know we know where they live. We also deal with people that are homeowners (not renters)
I guess that is true. So the accountability and responsibility factor is likely much higher. Also, can't you guys put a lien on a property, if you had to?


the Smart phone idea is a no....my phone takes a beating...i used to break phones a few times a year...im crawling around, smashing into things, pipes are falling into me....i finally found the most heavy duty phone made...its by Motorola and is even water proof....it also has a very loud ring, so i can hear it on a job site...

smart phones are larger and would be destroyed in my pocket....my hands are full of poop/dirt all day long...my dirty fingers would wreck the touch screen

I never considered that you were using the phone while your hands are dirty. Not that I'm trying to talk you into a smart phone, but if you wanted one, I'm sure there is some kind of solution for people like you and construction workers, outdoors-man and such that need to protect their handheld devices.
Otterbox, for one.
OtterBox Impact Series Cases // OtterBox.com (http://www.otterbox.com/impact-series-cases/impact-series-cases,default,sc.html)

The other thing is, I know how you feel about loosing or breaking phones. I've lost many. But once I started using them for more than just calls, maybe even depending on them a little...I started respecting them more as sort of a mini computer and less as a "cell phone", and now I don't think I'd lose my phone anymore than I would loose my iPod, keys or wallet. .

Hard Case. Deep pockets. Vibrate. And a decent Blue tooth headset that doesn't move around in my ear, so that I can operate hands free.

I'm just saying there is a way to keep it protected, and operate it no matter your job, if you wanted to do it.
But you should also be comfortable. No reason to take the risk if you are paranoid about breaking it all of the time.

So maybe taking them ( Credit/Debit Cards) and running them at the end of the day from your computer is the better option for you.
I think you can also do that with Pay Pal as well, if that's what you were looking at.

[vangogh]

So the accountability and responsibility factor is likely much higher.

Yes. You definitely don't need the card itself to process it. I charge cards all the time without having them. However there is more risk so some services will charge a great transaction fee if you don't have the card. I don't know that all do, but some definitely do.

I do agree there are solutions to the problem that you might potentially lost or break a phone. There are plenty of people working construction or related jobs that use phones to charge cards. For one it could be left in the truck until needed. However, you certainly don't have to use a cell phone. It just seems like an easy way to ensure you're getting paid right then and there. Some people might decide they'd prefer sending a check than writing down their credit card info. It's possible the numbers get written down wrong. In either case you're probably still getting paid, but why not be able to physically take the card right there?

[huggytree]

im not going to get a smart phone just to use for credit cards and have TWO phones....

i get calls all day long....my hands are dirty all day long.....my phone has so much bacteria on it that if i lay it down it typically moves by itself a 1/2 inch

[Harold Mansfield]

So it sounds like your options are clear. You need the ability to run them on your computer from home.
That's easy enough. Like I said, Pay Pal has that option, as I'm sure others do too.

Good thing about Pay Pal, is that you can also send the invoice when you get back to the office, via email, and they can pay that way too.

I think this may be a good option for you.

[SellRex]

Good thread. Let me toss in a few quickies:

1. For those writing down info from the credit card:

a. Writing down (or photocopying) the 3-digit CVV2 code from the back of the card is **expressly** forbidden by PCI regulations. There are no valid circumstances under which you are ever allowed to write that number down or store it in any way for any period of time. It's just flat out forbidden.

b. If you are storing other cardholder data electronically, it must be encrypted, and the device must have a firewall. For example, if someone is typing in primary account numbers and names into their smart phone's "notepad" app in human-readable format, they are **absolutely** in violation of the standards.

c. If credit card numbers are written down on a sheet of paper, the records are supposed to be under lock and key (e.g., in a safe) and in an access-controlled room (e.g., a locked office or file room).

The rules about protecting cardholder data became stricter over the years for good reason: Credit card fraud is off the hook and out of control right now.

2. On processors, I agree with those recommending sending an invoice through a 3rd party. Definitely, a secure and great way to go. Don't forget to compare Google Checkout to Paypal when making a final decision: Google has done a great job on their order processing flow, merchant UI, and configuration. They even have some nice touches that Paypal doesn't offer, like free Tax Data Systems sales tax lookups ... nice!

3. On merchant gateways, I see a lot of folks recommending Authorize.NET. Ok, well, that's fine. Yeah, I've used them. They're ok. Do you really want a NICE gateway?? Check out USAePay. They ROCK! They have a great system backed up by great customer service. Their merchant UI is a charm to use. If you are a programmer integrating eCommerce into web apps, you'll love their web services. Nice job!

[Steve B]

I'm following all the rules except 1a. I hope nobody turns me in to the PCI police!

However, not writing it down or storing it "in any way for any period of time" seems a bit unrealistic. Are we supposed to memorize it and and only disclose it verbally? Every time I buy something on-line it is requested by the merchant - once I type it into the computer and hit the send button - it gets stored. Even if I memorize the number, I'm storing it in my brain.

[huggytree]

Steve can you ask your wife for the company she uses???

thanks!

[billbenson]

Huggy, there is a smart phone out there that will be replaced if it is damaged. I don'r remember who made it. I saw a review and they ran over it with cars, dropped it from 10 feet onto concrete etc.

[Steve B]

When I had a smart phone - I used the Otter Box. It pretty much completely encapsulates the phone - you could clean it and spray it with disinfectant if you wanted. It's just not completely waterproof - but only because of the small holes that give access to the speaker and microphone. Even the small holes are covered by fine screening if I remember correctly.

We currently use Quickbooks for the cc processing. We switched a year ago from Innovative Marketing Solutions. I think both work fine, my wife said going through QB's saves her a few steps because the information was already entered.

[Steve B]

the Smart phone idea is a no....my phone takes a beating...i used to break phones a few times a year...im crawling around, smashing into things, pipes are falling into me....i finally found the most heavy duty phone made...its by Motorola and is even water proof....it also has a very loud ring, so i can hear it on a job site...

smart phones are larger and would be destroyed in my pocket....my hands are full of poop/dirt all day long...my dirty fingers would wreck the touch screen



HT - I thought of you the other day when we had to finally switch services and upgrade our phones. They had a display of a cell phone inside of a fish bowl filled with water. They had a sign near it asking you to call the number to prove it was working under water. It was an I-phone 4s in an Otterbox (the Lifeproof model of the Otterbox). This may be something for you if you ever want to get a smart phone. Between that and the Apple warrenty - I'm sure you'd be safe.

[vangogh]

Otterbox (http://www.otterbox.com/) does make some rugged cases. Even the names are rugged. Defender. Impact. The waterproof ones even hold your keys and other items. Priced pretty well too.

[mikebub]

If you have a family plan with your provider, you can add another phone. You can buy a smart phone for under $100. Keep it in your car and use it when you need it. It is much cheaper to swipe than to key in transactions, so you want a swipe.

[huggytree]

ive accepted 4 credit cards ...ever.....i now accept them, but everyone still pays me w/ check

for the little i use it what i have works for me now...i dont need a smart phone....i paid for the machine, so ill stick with it until my business grows larger and i need to accept more credit cards

im starting to think credit cards vs checks may be a regional thing....here in the midwest i think people would rather pay for services with check....i always do when someone comes to my house for a repair

i give the customer both options....when i hand them the invoice i say 'please sign here and ill need a check or card'.....they always give me a check

[huggytree]

HT - I thought of you the other day when we had to finally switch services and upgrade our phones. They had a display of a cell phone inside of a fish bowl filled with water. They had a sign near it asking you to call the number to prove it was working under water. It was an I-phone 4s in an Otterbox (the Lifeproof model of the Otterbox). This may be something for you if you ever want to get a smart phone. Between that and the Apple warrenty - I'm sure you'd be safe.


the speaker screen would plug up weekly in the summer with my sweat.....many cell phone speakers stop working if i get too many calls in the middle of summer...my ears are soaking wet and the water gets into the ear piece....im sure at a minimum id have to sanitize the case weekly

i will look into the otterbox though

another issue with smart phones is the size....its double what my phone is...and thats a problem

[Steve B]

You may be correct on the regional thing. However, I'm sure a lot of your clients are not originally from WI. Usually, a lot of professionals have moved around during their career.

I buy a special holster that goes on my belt. It's big enough for my cell phone even with the Otterbox on it. It's called Nite Ize - here is a link:

Clip Case Cargo Tall (http://www.niteize.com/product/Clip-Case-Cargo-Tall.asp)

The Otterbox Lifeproof works under water - so I can't imagine sweat would be an issue.

[Jstetson]

We are in year 3 and have been using Authorize.net with no complaints.