Cash or card for small business?

[Lynne Baker]

One thing to bear in mind when considering taking cards.
There is a %age charge for each transaction, unless it is a debit card, for which there is a flat rate, usually 20 odd pence.
There is a monthly rental charge for the terminal too.
However, and this is a big however, clients will spend more when using a card. This is not a guess, it's based on cold hard data!
If you take cheques you always run the risk of them bouncing - people can be unscrupulous and/or ditsy (not realising their account is overdrawn)
If you take cash you run the risk of people not having enough on them, not realising that you don't take cards, etc, and then you have the awkwardness of them having to go to an ATM and you never seeing them again
If you take cards people can buy from you over the phone, and you put their details through the machine as a cardholder not present.
It's an instant authorisation, the money is in your account within 2/3 days.
People expect to be able to pay by card these days.
And lastly - and for me it's an important one - it professionalises you.

The benefits far outweigh the costs for me, and as soon as you hit the 6 month mark you're no longer considered "new to cards" and you can start negotiating your transaction rates with your provider.

If you're very part time, it won't work for you. I'm very, very full time and it works very well for me. I don't have to fill out paying in slips, keep a load of float cash, take the time to pay money into the bank either.

Do remember the fact: people spend more using cards.

 

[GlamGal]

Thanks Lynne. That makes everything clearer and deciding much easier.


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[Jo's Nails]

Yes thanks Lynne.
Brilliant advise.xx

 

[NailsXpress]

Now looking at mpowa mobile card reader. Only thing is that to get a merchant account they also want a copy of my passport and a utility bill etc.

Not sure whether to use this. Dont like giving out too much information as there is so much fraud going on.

Will probably wait to hear how Male Waxer gets on first before going further with it.

If you feel its ok to give this information then, just to let you know it also works on a blackberry. Someone mentioned if there was a mobile system to use with blackberrys.

 

[NailsXpress]

I already have Paypal on my phone, but the signal isnt always brilliant to use. Means I will just have to take my netbook in with me each day, just in case someone want to pay with a card. I have a dongle for using that.

 

[shazzawilson]

Now looking at mpowa mobile card reader. Only thing is that to get a merchant account they also want a copy of my passport and a utility bill etc.

Not sure whether to use this. Dont like giving out too much information as there is so much fraud going on.

Will probably wait to hear how Male Waxer gets on first before going further with it.

If you feel its ok to give this information then, just to let you know it also works on a blackberry. Someone mentioned if there was a mobile system to use with blackberrys.

I emailed mpowa about a merchant acc. This is what they said
In response to your question.

To use a personal Bank account is fine. This is not an issue, as long as the account is in your name not your company name if you are applying as a Sole Trader.

Please do not hesitate to contact us if you have any further questions.
Kind regards,
So you don't have to apply for a merchant acc and in theory use your own.
Please let me know how you get on.

 

[shazzawilson]

Well I've done it and applied using my personal account! Let's see how it goes.......
At least I haven't had to use any passport details etc.

 

[Becky pocket]

I'm not able to get a card machine through my bank as for bad credit rating on my personal. How an I supposed to get people to pay by card do all card machine company's do a credit check not like I'm bankrupt resession took my money well before I started a business now I can't make a living how odd lol please help?

 

[nubee]

Hi, i rent a room too in a hairdressers. The owner has a card machine which they use and she allows me to use it too if a client needs it. Anything paid using it is recorded and deducted from my rent, if its over its carried over til the following week. This works great for me and if the client is getting their hair done too then the staff will take for my treatment too at the end. Though, i may be lucky all the staff are great and very friendly. Its just an idea which you may be able to ask about...

 

[lancashirelass]

I'm not able to get a card machine through my bank as for bad credit rating on my personal. How an I supposed to get people to pay by card do all card machine company's do a credit check not like I'm bankrupt resession took my money well before I started a business now I can't make a living how odd lol please help?

I can give you the details of my card machine provider, he just dropped into my shop when he was n the area he works for a company called pcip and my machine is with elevon.

 

[Becky pocket]

Please that would be fab I'm desperate as moving to my own space above a hairdresser x

 

[lancashirelass]

I will hunt out the details later and send them to you

 

[shazzawilson]

My latest findings - I didn't go with Mpowa as I was lead to believe I didn't need a merchant acc, but I did so someone didn't tell me right.
Next on my list i Zettle, it's launched this week so checking it out. And it take Mastercard and Visa. Again I will let you know how I get on.

 

[nicolaluise]

I have just signed up with streamline for a mobile card reader, £299 set up fee but no rental for the first 12 months, 23p per debit transactions and 2.37% per credit transaction, £27 per month rental after the 12 month period and £15 per month minimum charge, might be different for others but that's what I have got it for, I am more than pleased by this as after being mobile for 2 years now I'm sick to death of cheques, they take time and if I'm not quick getting them in the bank they bounce, they're inconvenient when in a rush and someone fills it out wrong, and well they just seem so dated now! My clients are delighted that I'm getting a card machine and I feel it just makes things more professional and straight forward for me. I will put my prices up in jan/feb to allow for this added cost to me so its a win win situation for me!

Good luck with what you all decide (oh and just to add its through my personal bank acc and I too have an adverse credit history!) xx

 

[Vetty]

I have come across Barclays Pingit today whilst trawling the internet.
I was wondering if anybody has used it for business and if it as any good?

It is an app that you can download on an android phone or to your pc and receive money's through txt messages. It's free and by the looks of things quite easy to use you don't have to bank with them to use it as long as your phone receives txt's.

I've got ping it and I love it. You don't have to have a Barclays account to use it

I use PingIt as well, it's fab! No charges, no giving out of bank details, client makes the payment through the app and I get a text! I'm not a Barclays customer but the payments go through to my Lloyds business account instantly......

As a mobile Nail Tech it really is useful. I now accept cash, cheques and PingIt!

 

[NailsXpress]

Hi Vetty, I also have Pingit on my phone, but the client also needs it on theirs.
Not everyone does so havent been able to us that yet. Got my izettle all set up, now just need the blooming clients to have their nails etc done to be able to use it!!!