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Discussion Starter · #1 ·
I have a couple questions:

1) I just opened a business checking account at the local bank. They only allow 150 transactions a month unless I hold a $15000 balance but even then i only get 300 transactions. I checked out a couple of banks. This seems to be standard around my area. How do you guys bank if you have an account that is that limited. That basically leaves me with the ability to only sell 150 shirts a month.... what do you guys do? do you have multiple accounts that you toggle between?

2) Im going to be using paypal, at least for the initial startup. I have almost zero experience with them except for on ebay. Am I required to sign up for their business account or can I use the personal accounts? from the web site it seems that a personal account doesnt have any fees, while the business account costs 2.9% per transaction to sell. Am I reading this wrong? Also, it says you can set paypal up to take credit cards. Is this cheaper than any other systems for accepting them? What else do I need to know about paypal?
 

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1) To heck with (most) banks. I have personal accounts with several credit unions, and one for my business. See what credit unions you have access to in your area. As a business, you will probably have access to most of them. Also, regional/local banks might be more interested in you as a customer and less evil than the typical bank... but a credit union is probably you best bet.

2) The seller always pays fees on PayPal, they are just structured differently for a personal account than for a business account. If you have sold stuff on ebay, you have paid PayPal fees. Yes, setup a business account. I think PayPal is a decent option for an online business since they make it pretty easy to get setup and don't have a complicated (or half hidden) system of fees. The other card servicers seem to relish in lots and lots of fine print gotchas that seem designed to unexpectedly cost you more money when the moon is full or whatever.

I have not turned on my online store, so I don't yet have first-hand experience with PayPal in that context, but to me it seems a good place to start, and is what I am going to do. One can always move on to someone else later on, as it costs nothing to get setup with PayPal.

In older threads I've seen the PayPal haters and PayPal lovers bicker over this... I'm following this thread to see how opinion shakes out "today."
 

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When people pay with paypal, it goes into your paypal account. Then you transfer it to your bank account whenever you want. You can hold the money in paypal as long as you need to limit your transactions.

So if you sell 150 shirts, you can transfer the money over to your bank all at once. One transaction. Or two. Or ten.

Also, if you're selling direct to customers with, say, checks, would you put them in one at a time? Or would you put in several together in one deposit? If you do one deposit per day, for example, that's maybe 20-25 transactions per month, plus paypal transfers, etc.
 

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Screw the bank, go get an account at a credit union. They are member owned. No fees, no real restrictions and they actually treat you like family.
 

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I've had a horrible experience with PayPal, and I'm not the only one. They will ALWAYS side with the buyer in every dispute, and can and do arbitrarily freeze accounts, locking you out of your funds and perhaps effectively putting you out of business.

Don't take my word for it, read this or just do a Google search on PayPal account freezes.
 

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Let me be more specific here since I am on a real computer and not my iPhone which is a PITA.

PayPal is not a bank and does not adhere to rules around a bank. While we take PayPal for payments, it is less than 1% of our business.

We use a real merchant processor (they are all scum, pick your poison) and a credit union for our banking.

Here is what you can expect with a bank.

Monthly fees, statement fees, deposit fees, withdrawl fees, talking to them on the phone fees, talking to them in person fees, check fees, deposit fees, fees for the hell of it....are you getting the picture?

Our credit union is great, no fees and personal service. They clear any deposit up to 15K (my stipulation but I could change that if I wanted) with no questions asked.

You need a partner in banking, not a merchant that is there to steal your money.

Banking 101 lesson over....
 

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Check out local community banks in your area if there are any. My business checking account is free. No fees at all! (Not referring to credit card processing fees as I don't use them for that).
 

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We use our credit union and our accounts are free
 

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We use chase bank and have never had a fee for too many check deposits. As for PayPal we use it and have never had issue with it. Shop your bank around because there is no need for those fees.
 

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After 20+ years in the convenience store and Subway subs business I have seen my share of credit card processors. Everyone promises to be lower than the next guy. The only thing I know for sure is that ALL standard credit card processors are SPAWNS OF SATAN! Fees, fees and fees get you every time.

Now to the point, got into screen printing and embroidery 4 years ago, sold my subway and c-store this past December and opened up a retail space for my shirt biz. We carry jewelry, purses, etc and lost of embroidery stuff. We made the decision to go with Square in our new business. Bought the stand for the iPad and couldn't be happier. No hidden fees, no contract, no equipment to pay for, (unless you buy the iPad stand for $100), and the app for iPad is awesome and can be used as a cash register.

If you aren't in a contract with a CC processor DONT. Check out square for a few months and see how it works for you.

With all the different companies I was with the previous 20 years one thing remained the same. They will get 3% of your transactions in some way, shape, or form. Square is 2.75%
 

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We used Paypal a ton for the first two years when we were printing. We also just used a personal account to save on fees/restrictions on our bank account with PNC. I definitely suggest doing that.

Also use Square, it's really convenient to swipe cards on the go.
 

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Discussion Starter · #13 ·
Wow thank you all! Your responses really helped. Ill be canceling my account at the bank and going to a credit union. I'm also going to look into square but might en up using PayPal at first.
 

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I do agree that all merchant processors are scum. I can't say paypal/square or anyone else is better. Pick what works for you and run with it.
 

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I have been using paypal for those that need to use a credit card.

I have my first order from a local major business that needs to use a credit card for payment. I'm not sure if they are going to want to use paypal. With Square can you use your computer to type in the number? I guess he is supposed to "call me" with his credit card number.

I also went with my credit union for a bank account and love it so far! They, however, stated they can not process credit card payments- does this mean they can't process the Square payments?

Tammy
 

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You can "manually" type in a card number with Square. They deposit money from your transactions directly in to your account so the credit union will work, it's just like a direct deposit. Pay Pal has a way to do that, and swipe transactions to, called Pay Pal Here (I think?). I chose not to go with them because they charge more than square and have a few fees. Square is totally different from any credit card processor including Pay Pal in that they have no fees or hidden charges. Square has two % rates, one for swiped cards and one for manual input. The manual input is a little higher than 2.75, however this is the same with all ccp's.

Try the square, I guarantee you will love it. You get your money in a day, except weekends, and you know exactly how much it's going to cost. If you later decide to use something else then, no problem because there are no monthly fees.
 

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Discussion Starter · #17 ·
with square can you build up multiple transactions in a "square" account (I guess) and then make one lump sum deposit into your bank account like someone mentioned you can do with paypal? my credit union offers 250 transactions. a little better than my bank I still don't want to go over.
 

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We use first data and they are more concerned with average ticket If it goes over a certain amount the price goes up
 

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I've used Square from day one for the past 3 years. Its the best CCP ever invented. Simple, easy to use, no fees, and most of all its mobile. I can use it on my phone or the iPad and it all goes to the same account. It keeps accurate records and has tons of graphs and charts full of your sales data. 2.75% is a bargain for the convenience and ease of use.
 
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