Square Trade Credit Card Reader

[Margaret CPA in OH]

Well, back to dummie category! I didn't even think about a practice with no money. Oh well, at least I know it works - well, up to the bank.

[Guest Taxed]

I have used PayPal with a few customers. The credit or Debit card company charges 3% plus a transaction fee if I remember it correctly. Do you eat that or build it in your overall fee structure? Do you guys give cash discount?

[Margaret CPA in OH]

Well, I have never even used it and doubt it would be used much but I would 'eat it.' My fees are high enough to manage the rare occasion that this might come into play. I also don't charge for extra postage when sending out organizers and engagement letters or for printed return copies. It isn't worth it to me. YMMV

[Lion EA]

I have my prices such that I can handle fees (most still pay via check) and a few phone calls. If a client's fees don't keep up with reality, I adjust next tax season. I've not offered a cash discount. I live out in the boonies, so getting checks to the bank takes time and gas; the small fees to accept credit cards are really worth it for MY convenience.

[Guest Taxed]

If you live in the boonies try to find a bank for your business account that will let you scan checks for deposit. That will save you time and gas!

I found a bank right across from my street!

[Margaret CPA in OH]

I have seen that possibility. What is the cost? For me to deposit checks isn't a huge deal as the bank I use has a counter at the grocery store I use. What equipment is needed, just a typical scanner or something special?

[Lion EA]

I looked into the banks that do. But, my friendly, local People's United Bank has NO service charges for small business accounts. So, I continue to send deposits with my retired hubby when he runs errands!

[joanmcq]

I was going to chime in that smart phones require you to use a finger to sign, or a special stylus.

Weird, I'll use square, and I put a Paypal button on my website, since paypal is cheaper than typing in the card number (I do a lot of clients remotely), but I just don't trust the 'taking a picture of the check' thingy my bank provides. But the branch is only 3 miles from my house, so it's no biggie to run over every now and then.

[Guest Taxed]

I believe if you run your payments through PayPal and it exceeds the threshold they are suppose to create a 1099-K? Anybody have any experience with that? I know the credit card companies are doing it.

[Gail in Virginia]

As far as the signature goes, if you don't have a stylus, use the pad of your finger (not your fingernail!) just like you would do anything else on a touch-screen device.

[Lion EA]

Yes, PayPal is one of those that issues Forms 1099-K if you have enough transactions. Is is something like 200 transactions &/or $20,000?

[Tax Prep by Deb]

I was going to chime in that smart phones require you to use a finger to sign, or a special stylus.

Weird, I'll use square, and I put a Paypal button on my website, since paypal is cheaper than typing in the card number (I do a lot of clients remotely), but I just don't trust the 'taking a picture of the check' thingy my bank provides. But the branch is only 3 miles from my house, so it's no biggie to run over every now and then.

My bank offers taking a picture of a check and it works wonderful! I haven't stepped foot in my back since October. The only thing is that during tax season I have to many checks to process this way, as it takes time to take a picture of the check and wait for all the steps for processing. It would be much faster for me to run to the bank. But off season, for my bookkeeping clients, I absolutely love it!

Deb!

[jainen]

>><faster for me to run to the bank<

What does the bank do with all those checks? Zip 'em through a little desktop check reader, right? Won't be long before you can get a consumer version of that dandy gadget.

[Tax Prep by Deb]

>><faster for me to run to the bank<

What does the bank do with all those checks? Zip 'em through a little desktop check reader, right? Won't be long before you can get a consumer version of that dandy gadget.

Actually they have one. They provide the check reader for free but want to charge me $50.00 a month to use it. The only time I have a bunch of checks is during tax season so it's not that cost effective for me.

Deb!

[Guest Taxed]

My bank allow me to drop off the checks with the deposit slip. I am not waiting in line for the teller, just drive up and drop it in the chute. Within 24 hrs it is posted to the account. What more can you ask???

[joanmcq]

I use the ATM. Much easier and available at all times of the night!

[Janitor Bob]

Supposedly my bank allows me to deposit checks by taking a photo of the front and back and sending the photo. I have no idea how it works, but I think the first time I have just one check to deposit, I'll try it out.....Usually I hold checks until the end of the week and make one weekly trip to the bank to deposit.....but later in the season when volume is less, this would be a handy feature.

[HV Ken]

To determine if square is right for you, you have to anticipate the volumn of credit card transactions. At 2.75%, it is almost 1% higher than using a processor (like iTransact that ATX has a relationship with, which I use). So if you swipe $2,000/month, the fee with square will be $55, but only $38 with a service and terminal. Add on the $15/month fee, and you have found your break even point ($55 vs. $38+$15) is a little less than $2,000/month. If you charge less than $2,000/month, use square. If you charge more, square will cost you more money.

I have also heard some concerns about the security with the square swiper. Have not done any research on that issue so don't know if it is a real concern or not. But if a credit card number that you swipe gets stolen - watch out.

Finally, it is usually a violation of contract to add on a credit card fee. You can insetad establish your rate and offer a cash discount. This is essentially how the gas stations are getting away with it.

[HV Ken]

I also added a remote deposit machine last year that scans checks and deposits remotely. The only time I need to go to the bank to make a deposit is when we are paid with cash. That is a rare occurance!