Accepting Credit Cards

[Randall]

I'm thinking of accepting credit card payments this coming tax season. I anticipate doing so only a few times. Just want to get the money up front and lose the hassle of late paying clients or those who 'forgot' their checkbook. I see the Square card reader doesn't work with Windows phones. I see a similar reader and service called Cube that works with Windows phones. Anyone using Cube with a Windows phone? It seems similar to Square. Anyone have any comments regarding their experiences and procedures (Cube or Square)?

For those taking credit cards, how do you keep your record of the client's signature authorizing the charge? Do the readers produce a e-record? Can you then print a hard copy of the signed record?

[Lynn EA USTCP in Louisiana]

i have an ipad and an iPhone, and use Square; I have had no problems with it. it is possible to print reports, per charge, dailyreports, weekly reports, monthly reports, etc.

[Guest Taxed]

If you process a credit card, then don't you have to pay the processor 3% of the charge plus you have monthly fees to use that gizmo?

I will allow Paypal, Check, Bill Pay and of course cash!

[easytax]

I believe if you set up a PayPal business account (which doesn't really cost for basic account) you can take credit cards not only through them on the internet but they also have a 'gizmo" (don't remember actual name) that they'll give you to use for free and it just plugs into your phone. (I don't have a phone so I didn't get it, so information is just from their offer to me several months ago).

www.PayPal.com

[Lynn EA USTCP in Louisiana]

Square does not charge a monthly fee. There is a 2.7% charge for card swipes; it goes up to 3% for 'phone' orders wherein you keyin the c/c number.

[Lion EA]

Intuit does not charge a monthly fee to ProAdvisors. I don't use a "swiper" but just type into my computer, or any place with internet access. I do have the Intuit GoPayment attachment for my iPhone but seldom use it. The 2+% is worth it to get paid immediately, to not have to drive to the bank from my home office out in the boonies (my business account does not yet accept deposits via iPhone, only personal accounts at my bank so far), to take their charge info over the phone when the person picking up the return is not the one holding the checkbook, to not have to mail out invoices/reminders, etc. I also take PayPal and have a link on the home page of my web site. I want to make it as easy as possible for my clients to pay me. I don't want to spend my time tracking payments. Some of my higher priced returns are for people who prefer to use credit cards to get miles or cash back; if that makes them happier with my fees, then it's worth a small percentage. If you are not yet taking credit cards and will start next season, raise your prices 2+% across the board so you'll come out even on those that charge and ahead on those who don't.

[taxtrio]

NATP has a deal for tax professional for credit card service. Monthly charge only $5.00 per month, there is a % charge (as always) but the fee is reasonable... Remember the fee % charged will vary. If it is a "rewards" card the % is larger. No way to know what exact % will be until the statement comes. But you can choose to be "seasonal" and then no $5.00 per month for off-season months.

I find it economical for the occasional client that can't pay me any other way. Check it out on NATP website.

[Randall]

My understanding is Square has no monthly fee, 2.75% per charge and their device is free. Cube has no monthly fee, 2.5% per charge but they charge $35 for the device.

[Catherine]

I have a PayPal button on my web site. Client does NOT need to have a Pp account themselves. I suppose you could put one of those buttons on your site, click it yourself, and type in the client's charge card info (or have the client do it themselves).

Didn't know about the QB ProAdvisor no-monthly-fee for card processing -- I may check into that. Thanks, Lion!

[Guest Taxed]

One way or the other it will cost you 2.75% to 3% on the average. So adjust your fees accordingly to factor that in if you do a lot of those. I think in a given season I many have 1 or 2 new clients who "forgot" their checkbook and ATM card and I thought it was prudent to go Paypal (pay the 2.9% plus 30 cents)

[Jack from Ohio]

If everyone does not take advantage of the confusion and increase in regulations for this coming tax season to implement at least a 10% increase, you will miss the boat. I am actually considering 20% for my base price, and several larger increases for the other additionals and add-ons.

[Guest Taxed]

More power to you if you can get a 20% increase without losing clients.

[MsTabbyKats]

If any of you use Chase, or have clients that do:

I use Chase Quick Pay....no fee involved

Either party....payer or payee...can have an account...to transfer the $$$ in.

As long as one party uses Chase...and the other party has an American bank account, it works.

[Jack from Ohio]

If, after explaining all the reasons, I lose clients, it will only be for one season. The will be back which will mean an additional increase for them. I am priced very competitively, even with a 20% increase. I don't want clients that only come to be because I am the "cheapest" preparer. My value as a preparer has increased with all the additional classes and learning to cope with the new things, and I am a professional and expect to be paid.

If I raise my prices 20%, and lose 20% of my clients, I make the same money and do 20% less work. I would also loose clients that do not appreciate a professional.

[joanmcq]

I use Square and have a Paypal button on my website. A lot of my remote clients use the Paypal (which is cheaper than the Square 'type in' charge) and it's great when people either 'forgot the checkbook' or just don't have a bunch of cash in their account to swipe the card. Psychologically it seems easier for a lot of people to charge a large amount than to write a check. A lot of younger people these days don't even have checks; they've been brought up on debit cards. Of course, yesterday a couple just handed me $300 in cash which is fine too!

I'm just making sure my fees reflect the increased use in cards. And yes, like last year there will be a fee increase. I also am not doing as many freebies. A note goes into the file if I've spent a lot of time on phone calls during the year, and the return price will have that added.

[Gail in Virginia]

We were using Intuit since we are in the Pro-Advisor program, and the first year was no monthly charge. After that, they began charging 9.95 per month, even in months when we had no activity. We are now using Square.

[Lion EA]

I get charged from time to time -- they tell me after X months with no activity. I call, and they reverse the charges.

[Max W]

If, after explaining all the reasons, I lose clients, it will only be for one season. The will be back which will mean an additional increase for them. I am priced very competitively, even with a 20% increase. I don't want clients that only come to be because I am the "cheapest" preparer. My value as a preparer has increased with all the additional classes and learning to cope with the new things, and I am a professional and expect to be paid.

If I raise my prices 20%, and lose 20% of my clients, I make the same money and do 20% less work. I would also loose clients that do not appreciate a professional.

The math is incorrect. If you have 100 clients and charge $100 that = $10,000. Reducing clients by 20% = 80 clients x $120 = $9600. So, you lose $400.

[Jack from Ohio]

The math is incorrect. If you have 100 clients and charge $100 that = $10,000. Reducing clients by 20% = 80 clients x $120 = $9600. So, you lose $400.

Lose 4% funds and 20% of the work. Sounds like a good plan. My average per return is now $120 vs $100. I am all over those odds!! Maybe have time to have dinner with my wife a few times during season. "PRICELESS"

[Cyclone]

We were using Intuit since we are in the Pro-Advisor program, and the first year was no monthly charge. After that, they began charging 9.95 per month, even in months when we had no activity. We are now using Square.

Just to clarify, Intuit will waive the $9.95 monthly fee after the first year as long as you remain a Pro-Advisor. The rep told me their system automatically is set up to start charging it every year until the Pro-Advisor lets them know they renewed.

When I noticed the charge I called and they refunded the charge and stopped it but told me I will need to call in again next year to get the fee removed.

I have the swipe card (and GoPayments) and it is a real time saver to automatically get the payment entered into QB and the credit card % is lower than what Square charges.

[Jack from Ohio]

Just to clarify, Intuit will waive the $9.95 monthly fee after the first year as long as you remain a Pro-Advisor. The rep told me their system automatically is set up to start charging it every year until the Pro-Advisor lets them know they renewed.

When I noticed the charge I called and they refunded the charge and stopped it but told me I will need to call in again next year to get the fee removed.

I have the swipe card (and GoPayments) and it is a real time saver to automatically get the payment entered into QB and the credit card % is lower than what Square charges.

How much does it cost you to remain a Pro-Advisor? Do they still require you to buy new software every year? To save 1/4 to 1/2 percent, it would take $20,000 to #40,000 in business to recoup $500.

[ILLMAS]

Pro-Advisor will run you about $795.81 a year, I believe you need to renew it if you prepare payroll for your clients.

[Jack from Ohio]

Pro-Advisor will run you about $795.81 a year, I believe you need to renew it if you prepare payroll for your clients.

Not a requirement to prepare payroll. That is a sales gimmick line. I do several client's payroll and decided against Pro Advisor as unnecessary expense. We only update QuickBooks every 3 years. They have a good product, but the value does not equal updating every year.

[ILLMAS]

What happens when you get a new clien that already bought 2014 QB?

[Gail in Virginia]

I am glad that some people have experienced a rebate of the $9.95 fee, but although I called several times and was told that the fee would stop and would be reversed, it never was and they continued to charge it. So I put a stop to it by cancelling the agreement to take credit cards through them. Apparently, your mileage may vary.