Getting paid by credit card

What do other practices use to take credit card payments?

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I have had a couple of clients go bust on me this year with outstanding fees.  (I'm too soft!)
There is a chance I could have collected some of this debt if I could take credit cards.  What methods do other people use to take credit card payments? 
The vast majority of my clients either pay by monthly s/o or fairly promptly on invoice, so I would probably only be looking at 1 transaction a month although it is possible others might take up that payment method if offered.
Do others charge a fee for taking credit card payments?  If so at what rate?
Thank you

Replies (19)

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By Duggimon
29th Sep 2017 09:56

We have a Worldpay terminal at reception. It works well, never had an issue with it but it would be prohibitively expensive were it just for one payment a month.

It's very handy being able to take payments over the phone though, that is doubtlessly the most common use for it rather than people coming in with their actual cards.

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By SkyBlue22
29th Sep 2017 10:15

If you use a terminal be careful about charging clients for using a credit card, as many terminal lease agreements forbid passing on their fees. I understand that charging for credit card transactions is about to be banned anyway..

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By ireallyshouldknowthisbut
29th Sep 2017 10:16

I have always considered the overall costs of doing this to exceed the bad debt risk so cant help you on that front.

But in my T&C's I provide that the director's are personally liable for our fees on bankruptcy on the basis that we are normally the "last supplier standing" in terms of assistance at the end of a business and often putting a lot of work in. Never had anyone quibble with that clause, or fail to pay at the end, albeit i have had to put them on long payment terms.

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Replying to ireallyshouldknowthisbut:
Caroline
By accountantccole
29th Sep 2017 12:45

We have started to do this with new clients to try to reduce the risk.

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Replying to ireallyshouldknowthisbut:
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By kevin.robins
29th Sep 2017 13:09

Interesting!Can I ask - do you get the directors to agree to this on an individual basis? Also what I am not sure how this would be enforceable on new directors appointed after the engagement terms were agreed?

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Replying to kevin.robins:
Caroline
By accountantccole
29th Sep 2017 14:43

Most of mine are family businesses we don't have many that have new directors coming in

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Replying to kevin.robins:
By ireallyshouldknowthisbut
29th Sep 2017 17:16

@Kevin, I am not sure I follow. Are your engagement letters a historic document signed many years ago? Or do you regularly update them? I am with the ICAEW so have no choice. Mine don't specify individual directors in any case. One director signs on behalf of the company, usually my lead contact.

In practice I find given all the help you give failing business in the final 12 months the directors do everything to pay you anyway. It tends to be a "cant pay" not a "wont pay" scenario.

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Man of Kent
By Kent accountant
29th Sep 2017 11:14

iZettle - pay for the card reader (£29 + vat) and then 1.75% fee per transaction.

https://www.izettle.com/gb/card-readers

I bought it for the once a year type transaction. Its portable, so you can use it when you're out of the office if necessary.

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Replying to Kent accountant:
Caroline
By accountantccole
29th Sep 2017 12:48

Thank you
Can you take payments over the phone with iZettle? It looks like you need the card to be with the machine? (From my quick look at your link)

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Replying to accountantccole:
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By tom123
29th Sep 2017 13:02

We use Worldpay Zinc, which is similar. You can buy a reader for about £50, but all our transactions are cardholder not present - so done on the website:

We take all the details and manually enter them.

Costs £5 per month and 1.5%, alternatively you can opt for no fee and a different percentage.

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Replying to accountantccole:
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By sharon_phillips
29th Sep 2017 13:12

We use Worldpay's virtual terminal which is free to set up. I believe our fees are 1.49% for credit cards, 0.23% for debit cards, with a minimum monthly fee of £9.95 plus VAT.

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Replying to accountantccole:
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By tracey2412
03rd Oct 2017 20:27

I asked this exact question of izettle a couple of weeks ago & sadly the answer is no - 'card not present' doesn't work with izettle, it is'in person' only. I'm still struggling to find one which will take over the phone payments. I've heard of 'SUm Up' but think will definitely be looking at WorldPay Zinc as a couple of other people have mentioned further down. Thank you!

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By Grayson Moore
30th Sep 2017 08:51

Another one for Worldpay with a portable terminal that can be take out to clients.

Thanks (3)
Sarah Douglas - HouseTree Business Ltd
By sarah douglas
30th Sep 2017 18:24

Hi

Understanding your post you just want to send the odd invoice for a customer to pay by credit card.

We use Paypal Invoicing for one-off invoices where there is an issue. We offer the PayPal services to clients that maybe have a problem with some of their customers.

You send an invoice by email; you can set it up with your company logo and details the customer can click the invoice and pay immediately no machines no monthly charges. Just the charge for the invoice that is paid. The prices are on the website and a lot cheaper than for paying a machine, for one-offs it works very well and has been very successful for our clients.

https://www.paypal.com/uk/webapps/mpp/email-invoice

I hope this helps.

Thanks (3)
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By the_fishmonger
03rd Oct 2017 10:05

We take through Worldpay Zinc. The chip n pin box cost £30 (with a discount just for being an FSB member) and you can do cardholder not present using the web.

Flat 2·75% on all transactions, no monthly fees. For the odd dozen or so transactions a year, that's an acceptable position.

Eminently elegant solution for what we require. We don't need contactless - after all, what the hell would we charge less than £30 for!

Oh yes! They'll put it on the card even if their cashflow is scraping along the ground. Some might see that as slightly non-ethical but when you see they've used the same card to pay for their holiday pics posted onto Facebook two weeks later...how do you feel

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By User deleted
03rd Oct 2017 11:44

I suggest switching from monthly s/o to direct debit using GoCardless. You can also use GoCardless for one off payments. Their charges are reasonable and it puts you in control.

Thanks (1)
Replying to User deleted:
Sarah Douglas - HouseTree Business Ltd
By sarah douglas
03rd Oct 2017 12:37

Whilst we use Go Cardless for direct Debits and regular work, it is handy to use credit cards as it gives the individual credit or business which they may need.

Go Cardless comes straight off their bank account. Paypal invoicing is also quite handy for some one off adhoc work.

For example we have quite a few subcontractors that have a very simple tax return and they all just pay by credit card every year. It is not worth putting them on go cardless.

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By pauljohnston
03rd Oct 2017 15:22

We made the decision some time ago to accept payments by a number of ways.
Izettle machine. Hardly ever used
Worldpay zinc - Often used even when a client is present with his/her card. take your ipad.
Paypal to pay on our website
We never charge the client any more than the invoice.
Most still pay by BACS and very few by cheque, probally less than 15 per annum.
I have set up a page on our website with all the options listed. This goes down well with clients.
We also use gocardless but dont let the client pay in arrear otherwise you may have trouble collecting. Amazon dont!

My suggestion is that you try using something like practice ignition assumming that you are fixed fee. This way the client agrees the majority of fees up front. Add to the standard page "if you want to pay now goto www.... . You will be amazed how many pay up fromt

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Caroline
By accountantccole
04th Oct 2017 13:51

You're all brilliant, this is really useful.
I have spoken to a local lady who does machines. That's looking like about £275 for the year and charges at 0.4% (debit) and 1% credit cards.
I will have a look at a couple of other options (particularly Paypal) but the price hasn't put me off.
THANK YOU EVERYONE :-)

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