Most of my clients pay for my services by check. (Actually, all until recently.) I do a lot of work for other businesses and the best way for them to pay is by submitting a check when the job is done. This has always worked out great. Recently, I ran into a client that had an unpaid debt. It was a small amount, and it got overlooked in accounting. There were no hard feelings or animosity, but she wanted to clear up her debt. She said “do you accept credit cards?”
Well, until that time, I never needed to. But with the world we live in now, many people don’t carry cash, and when paying on the spot they need a receipt to track the expense.
So I did some research. I checked out banks, and online vendors. I researched for days! What I came up with is this. If you only need the service twice a year, you still are required to pay a monthly fee, and processing fees, and gateway fees (whatever those are) in order to offer the service to your clients. For someone like me, that is a waste of money. But.. For that “waste” of money, I would have the ability to accept cards anytime I needed to.
Oh.. the decisions. It would be convenient. It would allow me to take deposits over the phone. It would allow me to get rid of the fear of a deposited check bouncing. (It’s happened to the best of us!)
So I continued my research and have found (and am now praising) Square!
www.squareup.com for those of you that want to check it out. There’s no monthly fee. There’s no commitment. You sign up and input your banking info. You verify the account and you are ready to go. The company mails you a little square “dongle” that fits into the headphone jack of your iPhone, iPad, or Android phone. Once you install the app on your device you just swipe the card.
The company charges a flat processing fee per transaction and that’s it. You don’t have to pay when you don’t use it. The credit card gets charged, Square takes their percentage and then deposits the remainder in your account. My first transaction cleared in 3 business days. It was no more inconvenient than going to the bank and depositing a check.
Square does have weekly deposit limits, but they list on their site that if a higher limit is needed, they can be contacted about it and find a solution. I haven’t needed it yet, but if I do in the future, I’ll contact them and keep you posted.
So, for all you small businesses out there, take a look at Square and see if it’s the right fit for you.