BILLING CUSTOMER THROUGH PAYPAL ?

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BILLING CUSTOMER THROUGH PAYPAL ?

Post by Bagpuss »

Hi,
I have been chasing a customer for payment for the last few weeks, I got through to him today ( a print firm ) and asked about my payment. Because his Manager is not about to sign off on a Company cheque, he asked me if I take Credit Card, unfortunately up until now I have only taken cheque or cash and I was thinking that I might invoice him through my personal Paypal account and then apparently he can pay securely by credit card, even if he doesn't have a credit card account.

The bill is for about £800 and I realise I'll be hit with Paypal charges but I was wondering if anyone uses this method as an alternative to having a credit card reader in their workshop ? I'd be interested to hear from you if you do and what you think of it.
Thanks in advance,
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by vitalframer »

Hi Adam,

I was also thinking of using Paypal for payments which then allows customers to pay via their nominated account securely. Rather than use my personal Paypal account I was thinking of setting up a new account in the business name if this was possible. Like yourself, I would be interested in others experience in this area.

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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by YPF »

Paypal can provide a business account that allows you to take payments using a virtual terminal, that will allow you to take debit/credit card payments over the phone or whilst the customer is with you. They say it costs £20 a month and a small amount from each sale (doesn't stipulate what that is).

You could use a personal Paypal account but I believe the onus would be on your customer to log onto their Paypal and send the money to you, but without the monthly bill.

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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by silvercleave »

Don't forget the good old BACS system, they can pay you online or by instructing their bank.

They just need sort code and account number, for those that think this might be a security problem, these numbers are available to anybody you have sent a cheque to.

Most of my invoices are sent online as a pdf file with the payment details on the bottom.

You could also use the small claims system online, has worked for me, if they are poor payers and you don't think they have the dosh do you want them back again??

Ian
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by stcstc »

i use paypal a bit with some of my customers i ship to

the plus is its easy etc

downside is costs and the fact its a pain getting the cash out so generally i end up buying stuff on ebay with it

like today i bought 300 euros worth of stretcher bars
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Jonny2morsos »

Sounds like stalling tactics to me.

I would ask for an appointment time when you can call and pick up the cheque.
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Bagpuss »

stcstc wrote:downside is costs and the fact its a pain getting the cash out so generally i end up buying stuff on ebay with it
like today i bought 300 euros worth of stretcher bars
Oh Noooo ! I hadn't thought about that ... £800 to spend on eBay :sweating:

Oh the joys of chasing debt .. to be honest this is the first time I've dealt with a business so it's all new to me, I just know that I don't need the hassle, it's only been 8 weeks but guess this could run and run . I much prefer it when the customer calls after 2 weeks, picks up the frame and hands over the money :clap:

Not sure if I will use Paypal now, I'm always shocked at the charges when I've used it through eBay.
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Gesso&Bole »

Adam

I don't give credit (especially £800) to anyone. Payment on collection/delivery, more often payment up front. Never had anyone refuse to do business on that basis.

Having said that, I think to be in business these days you probably do need to have the facilities to take cards. If you have a proper terminal, then its going to cost you £15 or £20 a month + a fee per transaction. There are, however, online solutions - I understand (although no personal experience) that you can even get one that works through your iPhone. These may be a little more per transaction, but I don't think there is a monthly fee.

Certainly worth looking in to.
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by CanvasChris »

The majority of my clients pay me by BACS, and before I make anything.... it's free too. Everyone worth their salt banks online, especially business so no problem. If they say they can't then they don't want to pay.

The one person I gave 'credit' to is my brother in law who has his own design agency and they rented 2 of my studio flash heads, brollies and stands for £20 a day for 2 days. That was the 8th of September.... it's now the 9th of December and he's still not paid!! and a reminder sent.

Paypal is OK for emergencies although they ALWAYS support the paying customer which I found to my cost in an eBay dispute which was definitely the buyers scam saying the item didn't arrive. Unfortunately after 3 weeks I threw out all the old proofs of purchase and after 4 weeks they claimed... 4 weeks for something to arrive!!!! I would be emailing after 4 days!!!

Hope it works out in the end...
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Dermot »

I take payment via PayPal for my business, business account for PayPal

I also have my business bank account and credit card account validated by PayPal which eliminates the limit for transfers from my PayPal account to my bank account, there is a validation process you have to do to activate this no limit transfer facility.

I just tell customers that PayPal is one of the safest and least expensive way I can do credit card payments at present, I have no issues with using PayPal even with some of the multi-national customers I have, if a customer doesn’t want to use the PayPal payment system they then have the choice of a bank transfer (most of my customers pay me this way) or I can send them a pro-forma invoice and they can then send me a cheque.
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Dutton & Grant »

We take payments via credit/debit card, bacs, cheque & paypal. We have noticed that more and more people are requesting to pay via paypal as they believe it to be safer (maybe it is?) Its very easy to set up a business paypal account linked to your business bank account, but as Canvas Chris pointed out some customers will abuse the system so always make sure you keep proof of delivery.
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Steve N »

I have a business account with PayPal, and it's be verfied the same as Dermot's, all you have to do is request the money to transfered to you bank account, I find it only take about two day to appear in the account. I don't at the moment accept credit /debit cards in the shop, also nothing every leaves without payment in full, that way I don't have to chase them for the money .

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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Bagpuss »

Jonny2morsos wrote:Sounds like stalling tactics to me.
Just to follow up on my original post about the customer who was dragging his heels a bit with my payment...
:( , well he was stalling as it turned out. I had an e-mail from his last week saying that their 'sister' company had just gone into liquidation but they were still trading and hoped to be able to pay me some time in January, I'll wait and see on that one but won't hold my breath. A lesson learnt that's for certain, next year I'll be asking for a 50% deposit on all jobs over £100, I think ...
Merry Christmas everyone !! :clap:

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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by realhotglass »

Adam, it sucks when someone (a supposed 'client') does this, and they most likely know they couldn't pay you when they picked up, if not when they ordered !!

Seriously mate, you need to be tough in this situation.
If you aren't they will string you out, pay the tough suppliers, and you won't see a cent (penny or whatever).

Talk to a lawyer, you should be able to get a free consultation, but don't be too drawn in to engage them immediately.
I would merely talk to a lawyer and ensure you get advice on the local aspects of sending a LOD (Letter of Demand) to your 'client', and the small claims type of set up you have available.

Over the past 20 to 25 years or so, thankfully I have had to send out maybe 3 or 4 LOD's for very tardy payers.
Keep in mind I am dealing mostly business to business, so as long as terms etc are clear, it's nowhere near as bad as retail.

Here, my LOD states the issue, when I have contacted them to arrange payments (often many phone calls, promises etc, all documented in job notes), and advise that if full payment is not received within 7 days of receipt of this letter (sent registered for delivery signature), then proceeds will be commenced immediately for a summons to be served on them for appearance in small claims court.

My letter has never let me down . . . if you would like a copy of the text email me and I will email back with this.

When they read the whole saga in B&W, they probably get the guilts pretty bad and pay up, but having to potentially come to a court hearing (possibly from a great distance) wouldn't look attractive either.

I actually went to my local court and picked up papers once, ready to complete, but received that particular payment next day.
Hope to never have to fill in and have the hassle of this process, but the princple of these types of business practices (poor payers) is high on my list of 'following up'.

Accepting credit cards saves a whole lot of heartache with this, advising that the job payment will be processed at such and such time, so they can pick up without fuss etc, whatever you feel right for you.

We have just switched to a full online system, where we have no monthly terminal hire, you probably have something similar there from one of your banks, I'm sure.
Check out http://www.commbank.com.au/business/mer ... fault.aspx

Good luck with it, hope you get paid in full, and learn the lesson well.
Regards,
Les

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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by mikeysaling »

adam - nothing wrong with paypal - we use it and we don't take credit cards - when you get the clearance you get the money - you can move it out when you want or buy supplies - more and more folk are using pay pal.
when all is said and done - there is more said than done.
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Gesso&Bole »

Its a tough world Adam, and they wont pay you anything if you dont put them under pressure, as there will be others shouting for money too.

I'd be down at their office, remaining very polite, but refusing to go until I was paid.

I hope that I'm wrong, and that the money comes through as they say.
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Re: BILLING CUSTOMER THROUGH PAYPAL ?

Post by Bagpuss »

I really appreciate the further words of encouragement / advice guys, I'm not really used to the "getting heavy" bit with bad debtors, my brother did offer to send his mate Fat Brad round but I'll see if they come good in the next couple of weeks, hopefully they will but if not then I will certainly take things further,
the practical advice is going to be useful,
thanks again.
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