Share this content
0
4899

Using Credit card and debit card for payment of fees

Using Credit card and debit card for payment of...

Didn't find your answer?

Search AccountingWEB

I am at the position that I would like to allow clients to pay by debit or credit card. With the advent of the sending of documents by email asking the client to pay by cheque seems a little outdated.

I have looked at Barclaycard's offerings. For an upfront fee plus a monthly charge I can offer this option to those clients who ring me but another fee is payable to have a link direct from my website. The upfront fee is £150 and the monthly charge £20 plus a %.

What have other practioners done in this areaq and can any of you give me some great advice.

I believe that a similar question was asked some years ago but things have changed since then

Thank you for your help

Paul
Paul Johnston

Replies

Please login or register to join the discussion.

avatar
08th Feb 2008 11:18

Transfer, Paypal
With the advent of electronic banking we ask for payment 'by transfer to..' on the foot of our invoices. We accept Paypal if they ask.

Thanks (0)
avatar
08th Feb 2008 11:18

Approval Status
Richard is correct, we spent a lot of time and money to reach the standards required and the necessary compliance which we have now got. We original set up the solution we offer so that we could take credit card payment and decided to sell to other companies. The service we offer is fully compliant and a lot cheaper than products offered elsewhere
http://www.totalwebsolutions.com/index.php?business=1&more_ecommerce=1&ecommerce_whatdoesitdo=1

Thanks (0)
avatar
08th Feb 2008 18:36

Thank you for all your comments this has been very helpful. I am biting the bullet and have been in touch with total web solutions.

I have not made the decision as to whether to charge clients for Credit Card payments.

I spoke to another company who advised that the number of transctions will almost certainly be higher that I assumed. For our type of business it could be that 33% of all fees will be paid this way.

Food for thought.

Thank you again

Thanks (0)
avatar
13th Feb 2008 17:46

Nochex, banks and card processing
Hi Paul,

I have a bit of backround knowledge about card processing. Although it isn't for an accountancy practice, I think some of it may be useful to you.

I was surprised by how popular our card payment was. We offer an online payroll service and we find that 80% of our clients choose to pay by credit/debit card, 15% by bank transfer and 5% by cheque. We don't charge any extra fees for whichever option they choose. We plan to introduce a direct debit option at some point, which we think will also be popular.

I think that a monthly direct debit would be a good option for those accountancy practices who work for fixed fees.

We tried Nochex for a while but they unexpectedly changed their terms and conditions so that our customers had to sign up for a notional account with Nochex before they could pay us. The wording of the terms put off some of our customer, so we stopped using Nochex. I don't know if Nochex have changed their terms back again, but they were quite unresponsive to our protests at the time.

The conventional way to process Internet card payments involves a card processing company and a merchant bank. The card processing company captures the details of the transaction and deals with any pre-authorisation steps, and it submits them to the merchant bank for settlement. In our case, the card processing company submits the transactions in one batch per day.

The merchant banks tend to charge a one-off fee but it is possible to avoid it. For example, we opened a business account with Abbey and they offered us an account with Natwest Streamline without the setup fee. I don't know if they still do this deal, but you'd have to ask one of Abbey's staff, as they never used to publicise it.

We use ProtX for our card processing and we are not entirely happy with them (and not just because they were bought by Sage). There are other card processing companies around. Please let me know if you find a good one!

Thanks (0)
avatar
14th Feb 2008 11:02

Credit-Dbit Card Continued
Steven

Thank you for your very helpful post. I have used another firm for the front end and I will let you know the outcome.

THe credit/debit card perecentage exceeds what I was lead to believe. But based on your figures I could probally save more in bank charges (for paying cheques in) than the cost of the servive.

I will get back to you in due course. As an aside one of my clients used protx and he now has the system running properly but he said it took a lot of work because of the new fraud provent stuff.

Paul

Thanks (0)
avatar
08th Feb 2008 08:41

Check out the regulatory requirements
Hi Paul

We are in manufacturing and have a Barclaycard facility in place for one or two large customers the purchase systems of which are so long-wnded that they would have machines broken down for ages while waiting for spares.

The problem that we have hit is that there are new regulations coming in that regulate electronic payments, particularly those through web sites. The requirements involve self assessment at the least, which must then be verified by a consulatnt, up to a full audit of your systems by an outside consultant.

Even the minimum level, which would cover us, seemed like too much hassel and too expensive for the few transactions that we do.

Thanks (0)
avatar
By Anonymous
07th Feb 2008 20:15

Thought about it
I thought about it and looked into costs but for my practice I couldnt justify the fee.

I do however actively encourage internet payments for the few not on standing order. I actually found standing order to be the best way of fee collection.

Thanks (0)
avatar
07th Feb 2008 17:27

Credit card Solution
We offer a credit card clearing / processing service which maybe of use to you with no set up or monthly charge and a virtual terminal. Check it out at:
http://www.totalwebsolutions.com/index.php?business=1&more_ecommerce=1&ecommerce_plus=1

Thanks (0)
avatar
07th Feb 2008 16:18

Paypal
A lot of my clients use ebay etc and some prefer to pay via Paypal. There is no upfront or monthly fee and for the small number of transactions I find to quite useful. I do add the transaction fee to their bill of course!

Thanks (0)
avatar
15th Aug 2012 11:57

Nice and easy direct debit solution

www.gocardless.com

Thanks (0)
Share this content