Accepting Credit Cards
I have one little condo unit that I plan on renting in Daytona Beach during the event weeks. Id like to be able to collect payments via a credit card but having a 25.00 a month service charge plus a % has me concerned. I mean , I am already having to pay a multitude of taxes and fees to everyone remotely involved in renting this little unit.( ie. The advertisement web sites, the occupational license peoples ,the tax collectors, the incidental expenses associated with the rental, accountants, bank accounts, telephone service and now a relatively large monthly fee for whats going to only amount to about 10 tranactions a year. I feel as thou I will be spending all the revenues I generate in order to do business ! Are there any companies out there who I can use as a "middleman" so to speak , and just pay them a one time fee for each transaction rather than making a big expensive production setting myself up as a bonafide credit card accepting entity which I really feel will be overkill for my purposes ( ie. 8-10 rental tranactions a year, and nothing more ) What I am looking for is for someone to tell me ,yes ,contact so and so and they will act as a middle man for all your credit card transactions for $ 15 buck a pop.....or something like this ..Hope I have explained myself clearly here ,, Thank you for any suggestions anyone may be able to render ,, ! I really appreciate all of the advise you members have been kind enough to share with me over the past several months !
[ Edited by Powerlifter on Date 10/09/2004 ]
[ Edited by Powerlifter on Date 10/09/2004 ][ Edited by Powerlifter on Date 10/09/2004 ]
Keep in mind that the product or service can be disputed regardless of the arrangement. Most, if not all providers require you to maintain the processing account for 6 months after notifying them you are closing the account for this reason. You will incurr charges for these months. They will also hold part if not all of the remaining funds for the future disputes as a reserve to settle disputes.
Up the rent a bit ($50 - $100) and then provide a discount for the tennent sending a certified check. Or only accept the deposit via credit card but always get your rent in certified funds!
Also you can be up front and provide a 5 - 10 % fee for credit card transactions.
HappyHome
NC
I had a merchant account for four years, and I can assure you it is not cost effective unless you are processing numerous transactions per month. 10 per year will not be worth the cost of the account. When you sign the contract for most of the merchant accounts, it states that you may not process transactions for anyone else and that you cannot charge credit customers any addditional charges beyond the normal price, but you can have a discount for paying cash.
One way around this would be to hire a property management company that accepts credit cards to handle the rental of your condo.
[addsig]
paypal?
Not an expert on them, but my son sold computer game items and I know he took credit card payments through them.
Paypal is a viable option. They only charge a % of the amount you receive, I think it is at 2-3% plus a transaction fee of like $0.20
We have many of our renters on this program and we do charge them a convenience fee to pay this way.
You can visit Paypal's merchant detail information here:
Paypal Merchant Info
There are plenty of companies out there that have no monthly service charges but they typically have higher discount rates.
I've been told that rental processing can get pretty low rates.
So you may be looking at 2.5% + $0.30 per transaction.
If you have 10 units at $800/mo that is $20/mo. That $15 seems like potentially a decent deal.
One other option I have been toying with is direct debit from my tenant's bank account. I operate in a college town and it seems that college students live a cash life and don't care about the different payment options too much.
GOOD LUCK
be sure to research paypal. they've got a class action suit against them right now. I've had friends use paypal for e-bay sales/purchases and they haven't been happy. others think it's the greatest.