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Friday, October 15, 2010

Propay

A while back I had a post asking opinions about taking credit cards. I thought I would update you on my first month first show costs for taking credit cards.
I decided to go with Propay for several reasons. One they charge a flat $50 per year, no contract. Every bank I contacted and several of the merchant services wanted a 3 year contract. No way I'm signing a 3 year contract. Second, I am just now getting calls from banks that I left messages with, one month later! With Propay, I got someone on the phone that could answer my questions right away and it took a very short time to set up online. The banks wanted to send paper work for me to fill out, etc. I manage all of this online, transfer funds, print reports, very easy to understand.
So the costs: I guess there is a cost to doing business no matter how you look at it. I would prefer not to pay these fees but they don't seem too bad, you tell me. I paid a flat $50 for one year, if I continue, I will pay $50 each year, or I can choose to upgrade at small fee increase.
I had four credit card transactions and my total fees for taking the card and transferring funds to my account were $18. Each card I took had a different fee. I didn't know this but when you use your bonus points credit card, I am the one paying for that. Those cards are evil, they are making things cost more in the long run for all of us. Do you think the companies are just giving things away for free? I read this on Lucy Faegella's blog, she has a great post about it.
So, overall, I'm pretty happy, I had sales I would not have had if I didn't take cards, two sales over $200. I have deposited about $1000 in the propay account and transferred those funds to my checking account and with the yearly fee, I have paid $68. If there is a cheaper credit card method out there, I couldn't find it, but then I don't do Math all that well, soooo....
Hope this helps if you are considering the credit card path. I'll post again in a few months to see if there are any changes. It's pretty easy to investigate all of this and make a decision that is right for you. Just google merchant services and you will find more info than you will ever need. I did see a couple of negative reviews on Propay, but it seemed to me that it was more user error than anything. I also set up a tax ID number, easy to do online and I registered as seasonal, which was a nice option to have. So, I'm real now, just need to get busy selling something!

9 comments:

Hollis Engley said...

That's great research, Tracey. Thanks for posting that. I'm still up in the air about whether to do it or not, but your information helps a lot.

Rice60640 said...

At the member sale, we took credit card using PayPal's Virtual Terminal. I don't know what the costs are but might be worth checking out. You do need an internet connection though. Good luck!

Linda Starr said...

Thanks for the update, I'm seriously considering Propay too. I read that post on Lucy's blog and it opened my eyes for sure.

cookingwithgas said...

you have to pay to play- or maybe it should be let us help you get those miles.
Just about ALL CC have some rewards- it is very unusual when they don't.
It cost us a chunk of change to run CC.
I don't think the public knows how we help cover the cost for them.
Then again I use my miles CC whenever I can!

Patricia Griffin said...

Hey Tracey - I just got an iphone (for $98, the old model) and now can turn off the phone and internet at my studio, saving me $90 per month. I'm embarking on using the iphone app Square to take credit card payments. No upfront or monthly charge, etc. They're sending me the free card reader. I'll let you all know how it goes!

Dennis Allen said...

I'm glad I went with ProPay.Even if people pay with cash or a check the M.C. and Visa Logos add a sense of professionalism and legitimacy to the booth that I think helps sales.Processing has been simple enough. Of course, there is no totally free lunch but some are cheaper than others.

Judy Shreve said...

I'm going to get a business tax number before the end of the year -- how'd you list -- as a LLC? It so easy to do this stuff online anymore.
Thanks for all the great info!

ang said...

brilliant trace...emily m posted a note about 'the square' a device that you plug into an android or iphone and the fees are way less i think its early days yet though on the product, both propay and the square are US only though, bummer!! ...ahhh just saw patricia is on it!!

The Seldom Seen Kid said...
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