Credit card payment?

Eddieras
Contributor
Contributor
I have a small consulting business and accept checks for payments. I recently had a customer ask if I accept credit cards. At first I said no, but then I realized that they can pay via PayPal with a CC. My business bank account is linked to my PayPal account. Am I correct that they can pay this way via PayPal? Would i just give them my paypal email address? It's about $7000 they owe me and I just want to be sure I have this all correct. Thank you for your help.
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2 REPLIES 2

scoobystyle1
Contributor
Contributor

Hello,

It is possible for you to accept payment through paypal via a credit card that is accepted by paypal.  However, there are a few things to consider.  I believe your paypal account must be a premier or business account to accept a credit card payment if the customer does not have his or her own paypal account.  If they do have a paypal account then it is a simple payment option through their account that can be used after you send a paypal invoice.  With all that aside, the most important issues to consider or the fees that will be incurred for the transaction and or a possible chargeback.  I believe the fee is 2.9% plus some change.  So, you would be looking at roughly -$200 in paypal fees.  You can however, pass this on to your customer by applying your calculated offset toward your clients bill and they aggree to your conditions.  The other issue as stated above is the possibility of a chargeback.  Most cardholders have up to 30 days to dispute a charge and can easily say that your service was not satisfactory (goods or service) and request a chargeback and this could be a big mess for you.  Beyond losing the money it could lock out your paypal account.

I am by know means an expert on all the above... but hope this will enlighten you in regard to safeguarding yourself.  I have heard a few bad stories that have occured during these struggling economic times.  Perhaps your client is a reputable customer.  In any event I hope this helps and have a great new year! 

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Eddieras
Contributor
Contributor

thank you so much for taking the time to explain all that to me.  the chargeback definitely changes things!  i really appreciate you're help on this.

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