Credit Card Payments

[Exigeowner]

I have a new client that wants to pay me by credit card ande we do not have facilities yet, the first order is approx 45,000 sterling and the price is already fixed.

I have just looked into the credit card with HSBC and it all seems fairly costly to set up not to mention 2% of value, If needs be I will have to go back to the client but would rather not if there are others offering cheaper ways or services, any ideas

[JustinP1]

Do they have any credit card convenience cheques?

You get paid the right amount like a normal cheque but they get to use the credit card facility.

• They* get the 2% bill later on though.

[mk1fan]

Were your payment terms were made clear to the client before the order was placed? If they were and they are now wanting to pay via a form you don't accept then you have no obligation - other than anal customer service - to set up a new payment system for them.

The credit card cheque would be workable.

If you agreed to accept payment by card before the order was placed then you'll have to swallow the costs or cancel the order.

[Exigeowner]

nothing was agreed prior to placement and I could go back but it could be something big for us so would rather solve the problem without having to bring the problem to the client.

For me solving the problem would be to accept the terms but reducing my costs as much as possible

[Plotloss]

Google Checkout.

Until May 1st its 1.5% which is the best you're going to get for a one shot deal.

[mk1fan]

Why are you so scared to go back to the Client?

They have, at some point, asked the question 'Can I pay by credit card?' If you don't have the facilities to accept payment that way then, I assume, you said that you can't accept credit card payments but will look into setting it up and get back to them with a 'yes' or 'no'. In which case you'll have to get back to them anyway.

Is it for goods or services that, in these times, it is reasonable to assume that you can pay by credit card?

I'm not being awrkward, you seem to have walked straight into customer service issue without any business consideration - to you or your Client.

The Google Checkout seems a good lead too.

[lightweight]

Paypal have somthing called virtual terminal it works out cheeper than google https://www.paypal-business.co.uk/virtual-terminal...

googles key USP was intergration with adwords but the benafits are not there unless you are realy small and at 45K you are not.

Edited by lightweight on Thursday 2nd April 17:41

[skwdenyer]

Exigeowner said:

I have a new client that wants to pay me by credit card ande we do not have facilities yet, the first order is approx 45,000 sterling and the price is already fixed.

I have just looked into the credit card with HSBC and it all seems fairly costly to set up not to mention 2% of value, If needs be I will have to go back to the client but would rather not if there are others offering cheaper ways or services, any ideas

I have to say, alarm bells are ringing here. Accepting a credit card payment is not "just another payment method". It involves you agreeing to your credit card clearer's terms. Those include the ability for the CC company to reclaim (chargeback) the payment from you in the future in the case of any dispute (real or vexatious) or any suggestion of fraud; the ability of your clearer to withhold some or all of the payment from you for an indeterminate period of time in case of any potential chargebacks, regular fees, and so on.

Set against that, you're legally allowed to charge your extra costs on top for accepting a credit card (but not for a debit card).

The only benefits for the customer that I can see are either (a) they need expensive credit, or (b) they like airmiles.

You might also find that your CC clearer simply won't let you process through £45k transactions to start with.

So, as yourself why a lot, and make sure you understand the risks and downsides.