Discussion:Client Fees paid by Credit Card
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Client Fees paid by Credit Card
| 2 January 2007 | |
| Well, here we go again...another tax season (busy season depending on where you practice) is upon us.
We are considering accepting credit card payments this year for a number of reasons. Before we decide though, we would appreciate hearing from this forum concering your experiences in dealing with credit card payments in terms of: Reaction from clients (positive, negative, indifferent)? Did your cash-flow improve (reduce late and/or non payers)? What percentage of your clients pay by credit card? Do you increase your bill to cover the credit card fees? Do you have "cap" on how much clients can charge (we don't envision offering this to our business clients)? Most important, any information (contact number/fees charged) concerning which credit card company/service that you are using would be very much appreciated. Thanks. | |
| 2 January 2007 | |
| I started accepting them a few years ago, I really thought it would have helped with the late payers and people who "forgot their checkbook" but really, it did not help. I have never had a bookkeeping client pay with credit card, they were not interested in doing so. I would say less than 10% of my clients paid with credit card. I did not increase my fees to cover the charges, and really it did not pay for itself. My machine was destroyed in the hurricane (over a year ago) and I never got around to replacing it, I don't think I will. In the last year since it has been gone I've only had 1 or 2 clients who planned on paying with a card and they had to go get a check, other than that no body seems to care whether I have it or not. | |
Death&Taxes (talk|edits) said: | 2 January 2007 |
| Clients love it, but the clients who use credit card for payment are almost always those who would send payment on receipt of bill. It's been three years now and if I could, I would chuck the machine into Barnegat Bay. | |
| January 2, 2007 | |
| I started accepting credit card payments through Wells-Fargo online about three years ago. I believe I applied for this through my software, ProSeries Pro. In 2006, 24 tax clients (out of 736) used their credit cards, and the total fees I paid were $114. I'll continue offering this service (without increasing my fees if clients use a credit card), not because it's real popular with clients, but because I think it's one of those necessary things to have available. I know that more of my clients used credit cards in 2006 than in 2005.
| |
Death&Taxes (talk|edits) said: | 2 January 2007 |
| :) I do hope not, Deb. We are very big down here on keeping the bay clean. One thing I might say about credit cards: once you begin, your clients won't like it if you quit. 42 Clients paid bills by CC this year, but I see at least two that were paying fees for tax representation. | |
| 2 January 2007 | |
| I think that it is a necessary evil, but needs to be done, if you want to compete with other preparers. AICPA is comming out with a big public service program, see: (feedthepig.org) regarding financial literacy, and amoung other things tries to discourage credit card use, and then we say "want to charge it". Oh well....do as I say not as I do!...We use propay, which is pretty good for a small business, we only had about 20 people use it last year. With them you don't need any equipment, besides you computer, as it's all done online. There are so many people that pay for EVERYTHING on credit card, and less and less companies that even take checks now, so it is becomming a required method of payment. | |
| 4 January 2007 | |
| I have a couple foreign clients that i email a credit card auth. to and they fax back a signed one. I then accept it thru QuickBooks Merchant Services. I have used it for a couple other out of towners also. I do not use it regularly tho and it can be fairly expensive. I guess I tack on a little for it when I think about it. | |
Bottom Line (talk|edits) said: | 5 January 2007 |
| Sounds like you're getting an agreement on this but I'll add my comment too. I don't take credit cards. Most of my clients are microbusinesses and most of them come to me for basic financial advice in addition to bookkeeping & taxes. I get questions such as should I pay down my 20% credit card or my 6% home loan? I spend a lot of time preaching against the sins of credit cards and the wisdom of living within your means. If I took credit cards, I'd be a hypocrite. | |
