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Question about starting new small business
Old 04-23-2015, 05:08 PM   #1
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Question about starting new small business

DW has decided she wants something to do and is starting a spray tan business... I've helped with a business plan and have run the numbers and she can certainly make money just working 3 days a week. She will be renting a room at a local salon and setting up there.

Question I have is about credit/debit cards. I plan to get her a card reader that attaches to her iPhone. I know we'll have to set something up with the bank and card providers..

Anyone know how this process works? Costs? Pitfalls?

I plan to start researching the card providers tomorrow, but appreciate any real life experience some of you might have with the money handling side of things...

tx in advance....
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Old 04-23-2015, 05:16 PM   #2
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You give them a bunch of personal information. They give you a bunch of info that obfuscates how much their fees are. Figure on 5% to 10% of the income going to card processing fees of one sort or another.
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Old 04-23-2015, 06:42 PM   #3
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If you are using the Square reader, it's pretty straightforward for credit card use (I think they also accept debit cards). The main drawback is that you may have to hand the iPad/iphone to the customer and they have to sign with their finger. Also the square reader does not produce a paper receipt so you need to get / enter the customers email so they can receive an electronic copy. Overall, it's slower than a traditional terminal.

The nice thing about square is that there are no setup or monthly fees. They charge a flat rate which varies depending on whether the card is physically present (2.75% and 3.5%). Obviously there is some cross-over point where if you do enough volume getting a dedicated merchant account will be cheaper. But it's great for getting started with zero outlay -- you can always switch later.

I never had to deal with chargebacks so I don't know how Square deals with those.

It's been a while since I used Square so my information may be out of date. I believe Paypal also has a similar system.
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Old 04-23-2015, 07:36 PM   #4
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Quote:
Originally Posted by photoguy View Post
If you are using the Square reader, it's pretty straightforward for credit card use (I think they also accept debit cards). The main drawback is that you may have to hand the iPad/iphone to the customer and they have to sign with their finger. Also the square reader does not produce a paper receipt so you need to get / enter the customers email so they can receive an electronic copy. Overall, it's slower than a traditional terminal.

The nice thing about square is that there are no setup or monthly fees. They charge a flat rate which varies depending on whether the card is physically present (2.75% and 3.5%). Obviously there is some cross-over point where if you do enough volume getting a dedicated merchant account will be cheaper. But it's great for getting started with zero outlay -- you can always switch later.

I never had to deal with chargebacks so I don't know how Square deals with those.

It's been a while since I used Square so my information may be out of date. I believe Paypal also has a similar system.
The electrician I had in today used the Square for my payment. It was pretty simple, and I had the emailed receipt within an hour. I was talking to him about it, and he said it was far easier and cheaper than actually doing the bank connected credit card system. I would recommend it for what your wife needs it for.
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Old 04-23-2015, 09:40 PM   #5
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Originally Posted by Tailgate View Post
DW has decided she wants something to do and is starting a spray tan business... I've helped with a business plan and have run the numbers and she can certainly make money just working 3 days a week. She will be renting a room at a local salon and setting up there.

Question I have is about credit/debit cards. I plan to get her a card reader that attaches to her iPhone. I know we'll have to set something up with the bank and card providers..

Anyone know how this process works? Costs? Pitfalls?

I plan to start researching the card providers tomorrow, but appreciate any real life experience some of you might have with the money handling side of things...

tx in advance....
I've done a fair bit of work in this area and square is absolutely the way to go when starting out. No real obstacles to getting started with it. You may eventually out grow it, but cross that bridge when you get to it.

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Old 04-24-2015, 01:09 AM   #6
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Have her get a cash back business card also for her expenses. And I agree with the others, "square" works very well with an iPad for an iPhone.
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Old 04-24-2015, 08:11 AM   #7
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thanks for all the replies... just the jumpstart I was needing... Square looks like the way to go for her low volume, part-time business plan..

let the spray-tanning begin!
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