Forums: Discussions for entrepreneurs and small business.

Some of our major customers have requested we start accepting invoice payments for our services via electronic payments through American Express.  In researching this method of payment I understand there can be a number of pitfalls and hidden costs to be aware of.  We are currently considering using American Express for the software, etc. needed to do this mostly due to their reputation, safety, etc.  If anyone can provide some insight into the pros and cons of getting set up to do this type of payment, we would be very grateful.

Many thanks to all in advance.

Showman

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Extreme customer attention to assure total success in your trade show participation.

Why not just have them electronically transfer payments directly to your own business checking account?  We have a number of our customers do this all the time and we have had no problems.  In fact, the big companies we deal with prefer it.  The bank can set this up so the deposits are one way, so you do not need to worry about them doing any more than just depositing the funds.  This also cuts out the middle man, decreases your costs and gets your funds faster.

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Bert at Harvey Software, Inc.
Multi-Carrier Shipping Software and Supply Chain Solutions for Internet Retailers

Also a provider of free shipping information and resources at Harvey Software`s Parcel Shipping Blog along with free tracking solutions at TrackingPage.com...

Direct deposit is totally the cheapest way to go.

The only down side is if you are a business like me, you have frequent one-time customers so setting it up is a pain. You don`t have to do your credit card services through American Express ... many banks offer it through merchant services.

Hello Showman and congratulations on your business,

My company can set up your merchant services account. We can also set up your ACH account (electronic debits and/or deposits).

Banks usually outsource their merchant services to companies like mine. In many cases the banks are the middle men. Some banks do offer merchant services in house but they have higher rates and fees. Banks also offer very limited payment solutions and have minimum requirements.

We do the processing and we service the account. Our sponsoring bank is HSBC who is the third largest bank in the world.

AMEX is a big brand name but we still have better pricing, customer service and more payment solutions than they do.

Call me at 817.307.8291 if, you would like to learn more.

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Thanks and have a blessed day!
Sincerely,
Dennis Thomas, Jr.
President
dennis@AlphaCardServices.net
www.AutomaticResidual.com
www.AlphaCardServices.net
Inc. Magazine # 99 Fastest Growing Private Company in America
817.232.8300
Alpha Card Services
4040 Fossil Creek Blvd. Suite 210 Ft. Worth, TX 76137

I am using Paypal business account.  There is no monthly charge for the one I am using, however; there is a 30c per transaction fee plus a percentage. I can transfer the funds into my account at any time.  It seemed like the best route for me, at least for now.

Jillybeans

I may be kinda late here, but I second that paypal account!

Just my two cents!

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Kim DelMonte
Accent Virtual Assistance * www.accentva.com
Creating Synergy - Delivery Balance!
Virtual Assistant * Virtual Legal Assistant

Something to be aware of is if the company wanting to make the transfer is a large company and they will not want to deal with, or have a PayPal account.  If your customer is private individuals or Internet active companies, PayPal may work just fine.  It really depends on your customer’s needs.  You should make sure you make it as easy as possible for your customers to pay their invoices.  In some cases having all the above choices won’t hurt as long as it is cost effective.

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Bert at Harvey Software, Inc.
Multi-Carrier Shipping Software and Supply Chain Solutions for Internet Retailers

Also a provider of free shipping information and resources at Harvey Software`s Parcel Shipping Blog along with free tracking solutions at TrackingPage.com...

I take it PayPal is for smaller companies and amounts.  Our invoices are typically in the $2,000+ range.  The companies we work with are usually national/international corporations.  We, of course, bend over backwards to work within their system and make it as easy as possible for them to do business with us.  They requested the AmEx.  Is there any appreciable difference between accepting Visa/MC/Discover vs. AmEx other than their 2.95% charge?

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Extreme customer attention to assure total success in your trade show participation.

They all are a little different and vary from service to service.  If you are just talking charge cards, you might check out Google Checkout.  It is free of any charges until the end of the year and they take all the cards.  We accept Google Checkout, checks by mail, our own banks merchant accounts for phone in order charge cards and electronic transfer though our bank.  We are adding PayPal.  Our bank and Google Checkout accepts VISA, MasterCard, Discover and AMEX.  As you can see, I hate to tell a customer “We cannot do it that way.” when they want to purchase our products.

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Bert at Harvey Software, Inc.
Multi-Carrier Shipping Software and Supply Chain Solutions for Internet Retailers

Also a provider of free shipping information and resources at Harvey Software`s Parcel Shipping Blog along with free tracking solutions at TrackingPage.com...

Thanks to all for your time, insight and recommendations.  Should anyone need inside advice on their trade show participation as an exhibitor, please contact me.  Thanks again!

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Extreme customer attention to assure total success in your trade show participation.