Accepting Credit/Debit cards?

[Rivone]

Hi there,

As some of you may have read recently I'm due to start my beauty business within a gym soon and I'm concious that people don't carry cash.

I personally carry cash or if I do its just enough for a trolley or car parking fees (usually small change stashed in the pocket of my car), so I am a bit concerned that my clients may not have cash on them to pay for treatments.

I have been looking into accepting credit/debit cards, but the machines you get from the banks are so much money initially (good if your a salon bringing the money in in the first place). Do banks still have the manual card machines (remember the ones you used to have a slip and run the track over the card and slip - I know I'm old enough to remember lol )...

... so I have been looking at the online Paypal virtual terminal where you accept credit/debit cards there and then.

All I will need to get is a 'dongle' (mobile broadband), a laptop (or preferably a newtbook) and then set up a business paypal account.

It would cost me approximately £280 up front for the netbook and between £10 - £15 per month for the mobile broadband subscription.

I thought if I had a netbook I could have my client database and diary stored on there too so it wouldn't be a complete waste of money.


Also, do you still accept cheques? I haven't written one for years and not sure of the process of accepting them anymore.

What do you all think and has anyone got any other suggestions?

Clair
xxx

 

[angelina221]

I would definitely have a card machine. I would say 75% of my customers pay with a card. Streamline have good rates. I'm a member of the federation of small businesses so get a good deal. If you are a member it might be worth giving them a call. If not then streamline are worth looking at as their rates are really good. I will be changing to them as soon as my current contract is up. Rushed into getting the first card machine i was offered with a good rate but the one i went with has terrible customer service!

 

[Rivone]

Thanks for the reply, I had looked at the Pronto machines but they are £27 per month for a 36 month contract or £85 per week.

This amount is just too much per week to pay and I didn't want a contract for 36 months in case the arrangement don't work.

That's why I thought the virtual Paypal terminal is the better option as they only charge a small % for every transaction done.

 

[bombini]

Its a difficult decision as on the one hand pretty much everyone expects a card facility to be available but as you are a new business you don't want to commit to a lengthy contract only to find the business doesn't work out.

I have my card machine with silverpay and they have an initial 3 month contract and a set up fee around £90 it is then approx £30 month rental plus 5% transaction fee. Its not cheap BUT I had to get one as so many people were requesting to pay by card and new clients weren't aware i didn't have one, plus retail sales shot up once the card facility was available.

I personally would rather just pay with a traditional card machine than do it via paypal, also you may find that some clients are a bit funny about the transaction being processed over the internet.

 

[Lynne Baker]

If you have a card machine you will find that your retail sales will increase a lot!
Join the FSB, get free banking with Co-op, a streamline terminal which is free for 3 months and then preferential interchange rates.
I think you have to bite the bullet with this one.

 

[Rivone]

Thanks for the replies - your suggestions with a 3 month trial does sound better than straight into a 36 month contract.

I will look into both, what is the FSB? Sorry if I sound thick!

 

[Lynne Baker]

Federation of Small Businesses
Home page of the Federation of Small Businesses - FSB - The UKs Leading Business Organisation

 

[Curly Bamboo]

I started my business recently in a gym. Card machine is essential.

I am with Abbey business banking - terrible service - zero fees forever. I would not recommend them unless you are exceptionally patient.

FSB membership £150. Signed up with Streamline merchant account. Got a 6 month GPRS terminal with 123 send £25 a month all inclusive, deposit of £350. 123send does not charge for rental until end of the contract period, makes sense are they took a large deposit.

If you have a short lease with the gym you should look to get a short contract with a card machine as it makes no business sense to take on a long contract. This way you dont carry extra risk.

I actually did a calculation for taking 24/36months and factored in cancellation charges at 12 months and the deal I mentioned above is still better.