spaboom, credit cards, GCs, merchant accounts....ack!

[moca]

OK I've worked myself into a mental pretzel again and I think I need to straighten back out....

Background: Our practice is low-volume but slowly expanding. I'm trying to get more GC sales, so I'm planning ahead now so that all the bugs are worked out by fall, when the seasonal buying frenzy starts. Most of my clients are monthly repeats who pay cash (I decided that's all I'm going to accept--haven't been burned by a check yet, but I don't want to accept a check from someone I don't already know). Even though I live in an area with HIGH credit/debit card usage, I haven't yet had ONE person ask about credit cards or remark that they wish I accepted them. But, most ppl don't think of buying GCs for their loved ones from me around Christmastime, either.

What I'd like: to be able to secure some more GCs, or bigger-ticket sales (like packages) in order to do a little more volume. I took Sage's advice from another thread (Thank you Jill!) when she said that one of the main business-building things she did was set up with Spaboom. We looked into it and decided it'd be PERFECT for easy GC sales. I especially like that you don't pay anything until you actually USE them. Very cool. Only thing is, we need a CC service or merchant account to pull that off. I'd also like to do more outcalls, especially where I massage multiple ppl. I think that I might be more likely to land those bigger jobs if I at least accepted credit cards for them. Thus, it's especially important that I have the capability to process the CC using my cell phone while I'm still onsite. (That way if a CC gets declined, I know that BEFORE I leave--and can ask the client for an alternate CC--instead of getting an ugly little surprise when I get home and have already done the work and have little recourse after the fact.)

What I'm trying to avoid: A few things, actually. One is high monthly costs, or CC programs with monthly minimums or expensive terminals that are really only worth it if you do a high volume, which I don't. Another thing I REALLY want to avoid is a scenario in which a regular client uses his/her credit card to pay for their own individual sessions. I'd really like the CC purchases to be limited to either GCs for someone else OR bigger packages (spa parties, corporate contracts, pre-paid packages, larger outcalls, etc...stuff over like $200) if at all possible.

Question is, how?

I looked at the CellCharge website. I also looked at PayPal, which was what I was originally going to go with. Turns out PayPal won't work, ks I can't do it from my cellphone. CellCharge looks like the front-runner, but I need more convincing I guess in order to sign up with them, I'd need some of the other issues ironed out first. I guess the biggest thing holding me back is that I really like the cash idea, it has worked out SO well, and I don't want all my existing cash-paying clients to start whipping out their cards to pay for single sessions. I understand that I might not be able to control that outside of politely stating that my "policy" is to accept cards only for either GCs or sale totals over $200 or something and hoping they just abide by it. (Can ya feel the confusion yet? )

So, any input is MUCH appreciated! The more detail (as to how it works for you, the day-to-day mundane details) the better. PM me if you want, I don't mind. Anything lol.

Thanks in advance!!

Hoping to unravel now,
~Jyoti

 

[rotavatore]

I used to use CellCharge and really liked it, very easy to use - no batching at the end of the day (they do it for you), money into my account in reasonable amount of time, good service when I called them. I went with another set up when I started getting more interest - swipe them into the computer now. For what you are wanting CellCharge would be my choice.

As far as putting restrictions on when cc are used - put up a notice in the office such as:

"I am now accepting cc for gc or purchases over $200 - but would prefer cash for anything else."

Hope this helps,

Debra

 

[Sumsie]

spaboom, credit cards, GCs, merchant accounts....ack!

Brainstorming with you here jyoti...

Only thing is, we need a CC service or merchant account to pull that off. I'd also like to do more outcalls, especially where I massage multiple ppl. I think that I might be more likely to land those bigger jobs if I at least accepted credit cards for them. Thus, it's especially important that I have the capability to process the CC using my cell phone while I'm still onsite. (That way if a CC gets declined, I know that BEFORE I leave--and can ask the client for an alternate CC--instead of getting an ugly little surprise when I get home and have already done the work and have little recourse after the fact.)

What if you required all outcalls to be prepaid, and then have a small shopping cart (or PayPal buttons), on your website. That would discourage your regulars from using their cards for single sessions. If you set it up on your site with a "buy now" button for GCs, outcalls and packaged sessions they won't have the option to pay for a single incall session.

I looked at the CellCharge website. I also looked at PayPal, which was what I was originally going to go with. Turns out PayPal won't work, ks I can't do it from my cellphone. CellCharge looks like the front-runner, but I need more convincing

I currently use both, not happy about that but it is working for the moment until I can find another option. CellCharge will only allow you to enter purchases through the phone -- you would not be able to use it with SpaBoom because CellCharge requires the CVV2 three-digit code from the back of the card and it is against the law for you to retain that number. i.e. SpaBoom will not save the CVV2 number for you to run the card manually. There is no bypass step with CellCharge and it is required with EVERY card (I've tried, it doesn't work, and I've talked to the customer service and they say it is required since it is being called in and not swiped).

So, in my opinion your best bet would be to find a merchant account online that will give you a small shopping cart (an additional monthly fee on top of the merchant account), for SpaBoom and your website, and allow you to enter cards that you receive in person (phone orders for GCs or outcalls?).

I still haven't found the ideal situation. AuthorizeNet wants $30-something monthly for an account and another monthly fee for a shopping cart. PayPal charges $20/month for the shopping cart that I use with SpaBoom and CellCharge is $8.95/month for my in-office charges.

I hope I haven't put your brain into an even tighter mental pretzel! :

 

[Cheesebrady]

Hmmm I too was considering using SpaBoom for my GCs sales on my site.... from what I am reading here, SpaBoom does not process the charges for you??? Guess I need to call them and find out exactly what their service is all about... if they just provide the shopping cart for the GC purchase.. I am sure my hubby can program something similar for me on his own and I won't have to give up a % of my sales to them... hmmmm

I currently use CellCharge, it works for me for now, and am glad I found out it won't work with this vendor before I jumped in.

 

[Mr Chill]

Hmmm I too was considering using SpaBoom for my GCs sales on my site.... from what I am reading here, SpaBoom does not process the charges for you??? Guess I need to call them and find out exactly what their service is all about... if they just provide the shopping cart for the GC purchase.. I am sure my hubby can program something similar for me on his own and I won't have to give up a % of my sales to them... hmmmm

SpaBoom doesn't provide a shopping cart or any merchant services. They only provide the graphic design and the interface for the instant gift certificates and appointment requests. It is a very cool concept, and my clients love the convenience of not coming into the office to get a gift certificate.

 

[Rush]

i was unsure of what to do when i opened my own practice. i realized that it's just so much easier (and less stressful) to just have a cc machine and let whoever use their card. don't get too caught up in all of the charges and %'s. you end up paying less than/about/or slightly over 1.00 (depending on % charged) for any one hour massage. if you don't necessarily want everyone to know you accept cc, put the machine out of sight so when asked, you can tell them yes but it isn't out on your desk for everyone to see.

remember that it's a write-off too. i have never paid more than about $35-$40 in any single month to be able to accept cc's. i think my average is about $20-$25 and i take cc's all the time. as far as i'm concerned, it's worth every penny. i never have to think about it, worry about it or wonder what to do. i too have spaboom and i just go to the site, get the numbers i need and go to the office and punch them in.

btw, my cc machine only cost me 50 bucks. it doesn't print out any receipts so if a client needs a receipt for their records, i just hand write one out for them showing they used their card.

if you do decide on a merchant, do your homework and talk to someone where you do your banking, they'll be able to help you and set you up with someone. there are people out there willing to look out for your best interest but you've got to search for them, don't let them search for you. you should easily find one that doesn't have a monthly minimum. you should also know that you don't HAVE to purchase your machine through that company. you can purchase any machine you want from wherever you want to. the only thing you'll want to make sure is that you purchase a machine that your merchant "supports" (i think it's a software thing...not sure). you can buy a cc machine on ebay, through a business going out of business, from someone who is upgrading their system etc...

good luck!

 

[Mighty Saints!!]

spaboom, credit cards, GCs, merchant accounts....ack!

Hi all, and thanks for the great advice so far!

OK, to simplify things, I guess what we DO need are two separate things--a service we can use with Spaboom AND a service we can enter in cards thru any phone line, including a cell phone. Ideally, we'd like to find one company that'd do both.

While a terminal connected to a landline might be more professional or convenient, etc, and might solve the Spaboom issue, it wouldn't solve the outcall problem.

I currently use both, not happy about that but it is working for the moment until I can find another option. CellCharge will only allow you to enter purchases through the phone -- you would not be able to use it with SpaBoom because CellCharge requires the CVV2 three-digit code from the back of the card and it is against the law for you to retain that number. i.e. SpaBoom will not save the CVV2 number for you to run the card manually.

Ooooh, good point! So Spaboom does NOT require the CVV2 #? But CellCharge does? I just wanted to be on the same page. (I'm a total newbie! LOL)

I've combed most of the CC threads out there (though there might be some I've missed), and a few ppl have mentioned Propay. IF I'm reading and remembering things right, someone might've even said that they do both phone AND internet transactions? (Am I right about this?) And if so, would they then work for Spaboom? Might they suffice for BOTH of my purposes? (That'd be too cool. )

Anyway, thanks again, and whatever else anyone has to add, please don't be shy

Hugs,
~Jyoti

 

[Annorofah]

spaboom, credit cards, GCs, merchant accounts....ack!

While a terminal connected to a landline might be more professional or convenient, etc, and might solve the Spaboom issue, it wouldn't solve the outcall problem.

I have a merchant account set up through Merchant Warehouse I bought a refurbished machine that I use for people paying with CC at my office. For Spaboom GCs I just get the info like terab does and run them manually with my machine at the office or sometimes I bring the machine home (where my computer is) if I have several to run from Spaboom. It does not matter where I plug in my machine, it will run a CC and I am pretty sure it dials an 800 number. So I am wondering why you wouldn't consider buying a machine and just taking it with you on outcalls? Use the client's land line? Is that hokey?

Anyway, the minumum I pay for my merchant account is about $12-$16/month I honestly can't remember right now. It's to pay for the account and an optional "merchant club" which is an extended warranty on your machine and also supplies ink/paper for the machine.

 

[RAO M.K.]

Hi,
I had forgotten about being able to plug in anywhere. I did that too in the beginning. I sold gift certificates & took pre-pays from my cell phone, using my terminal plugged in at home in my office. If you simply add an outcall prepayment policy, you should be good to go. If for some reason, the appointment does not happen, no loss - you can void any transaction without penalty *if* you haven't batched out for the day.

About spaboom & the CVV2s - its not SpaBoom that requires them. The merchant companies have that feature for consumer protection. I only just learned (to thunderous laughter from friends & colleagues ha ha) that it is easy to overide that function.

Hope you come up with a solution that seems clear & is not worrisome for you. It does tend to get complicated when we spread our wings. I am learning so myself.

I like what terab says about the charges. really, the convenience factor for the customer is great, and you might find your clients more apt to buy multiple TX packages or buy gifts or even enjoy longer (more expensive) sessions beause they can charge it! Just thinkin'... not saying its a fact.

With charging in advance for outcalls, you can waive that restriction for regular clientele if you like. A perk, if you will.

Good luck with it all.
jill/sagetherapist

 

[ideal22us]

Y'all make great points

I wasn't aware that a terminal could be plugged into any landline. That's cool! Only question there is, what if the client doesn't have a landline? (We don't at our house; we have cell phones only.) The only reason I'd thought it'd be good to be able to run a CC by cell phone is that I'd be able to do it absolutely anywhere from our cells, whether or not there was a landline nearby. No, I don't think it's hokey to use a client's landline. I'm starting to think a terminal WOULD look more professional and trustworthy, though...

And then there's the idea of the terminal. I've heard of some outrageous costs and lease terms for a terminal, and I've also heard of some good deals resulting in happy users. I've heard that some companies/banks/etc will only be able to work with certain models of terminals (someone somewhere along the line mentioned a possible software compatibility issue?) Terminals seemed to be a bit too complicated and expensive for us, but then, we know very little about them, so we're not totally closed to the idea of having one.

Question for PayPal, ProPay, CellCharge, etc...do you have to have a *merchant* account thru your bank, or can you skate by on a personal account (which I have now and have been fine with, since my growth has been slow) and designate practically any type of account for deposits? A client of mine tonite who had his own business says if you're a sole proprietor (which we each are) and can get by with a personal bank account, do so! Ks the fees for a merchant account get exorbitant! (sp?)

With charging in advance for outcalls, you can waive that restriction for regular clientele if you like. A perk, if you will.

That's true, and I think we're even safer ks we only do outcalls for clients who are established and at least semi-regular Very good point!

Thanks, y'all, with yer help, I'll reach a decision yet!
Hugs,
~Jyoti

 

[WhiteStoner History Month]

My merchant services (also Merchant Wherehouse) required alot of proof of me, one thing was a business checking account. No personal one. BUT, no matter how small you are, truly, its best to start from the get-go, doing things the way you see your successful, booming business doing. Its a blessing to *not* have to change things as you grow. Openning a biz checking account is only one thing (one hoop, ha ha), but having to go back after a booming year of growth & change everything would be so time-consuming! (I am typing in the dark - sorry if there's typos.)
jill/sagetherapist

 

[man from utopia]

I have been very happy with http://propay.com/. You can process cards via phone (cell phones are ok) as well as online.

Pros:

-no monthly minimums
-no monthly charges (You pay a fee 1x a year. $59.95 min. for the account that allows both phone and internet processing)
-no start up fees
-no equipment needed (I bought a manual swiper on ebay for my own protection though)
-they accept Amex and Discover at no additional charge
-you can use a personal account for collecting your money

Cons:

-They do not automatically transfer money for you. You have to do this yourself and it costs about .30 each time you do it. The money is in your acct. in 2-3 business days
-There are processing limits, so if you are going to be charging thousands a month, you would need to upgrade to a more expensive acct.
-Their % taken and transaction fees are a little higher than their competitors, but you don't have a monthly fee like the others.

ALSO NOTE: You cannot sign up online or via phone, you have to send in a check for payment and info so they can verify you are who you say you are. I did not know this until I began the process of enrolling. It only took about 2 days though. I don't think they even waited for my check to clear.

It works great for my small business and serves my purposes well. Since I have a swiper and contact info for all my clients should there be an issue with the card, I just swipe the card and send them on their way. I process via the net or phone later in the day. If you don't have a swiper, then you would for sure want to call it in while you were with the client. It only takes about a minute or less.

Let me know if you have any more questions.

 

[Persephone]

The business account at my bank is practically a normal account. Because I am a Sole Prop, the rules are different as far as fees and requirements associated with opening a business account at the bank. My business account is pretty much used for the purpose of having a place for those CC deposits to go to right now. I told my bank what I wanted to use it for and they helped me figure out what type of account would work best for my needs. I still use my personal account for all the non CC payments. Although, I agree it's a good idea to set up shop the way it will be run when it is really hopping.

Still, it is possible to get the things you will need and make it all work more efficiently as you go.

Anything is complicated when you don't know much about it and don't know what questions to ask.

Terminals:

They can come with or without a printer. They can run the batch automatically or you can do it manually. You can get a pin pad for debit transactions or not. The merchant company you buy it from should be able to program your info into it for you and set it up the way you want it to operate. They should be able to send some sort of manual to let you know how to operate it to make a transaction run smoothly. They should have a tech support number to call. Every terminal I have ever used has been fairly straight forward as far as how to process a sale, void a transaction, run the batch, etc.

I got an old clunky refurbished terminal for $140. It is easy to use, all the buttons say what they do and all the prompts make sense. The only thing I can not figure out is how to adjust for a tip. It does not even print a line for a tip on the receipt. I don't know if they didn't program it to have that option, or if that machine doesn't even have that option to program in the first place. I will get around to calling about it, but it's something to ask up front if it's important to you.

I have one weekly client who uses a CC so it has already paid for itself over and over just with her. But in two months I've sold enough GCs from Spaboom to have paid for a couple of much nicer and expensive machines.

In hindsight, I would have invested in a machine that is not clunky and does an automatic batch at the end of the day because I do forget to run it!

As far as clients not having a land line, it is something that can be discussed when setting an appointment: "I accept cash. Or if you'd like to pay by CC I can accomodate as long as a land line is accessible at your location. Oh, there's not? Okay well I can take your CC info over the phone right now, or I can accept cash when I arrive for the appointment."

If you get a machine the bank and/or merchant company should know if the two are compatible. I advocate for just buying a machine instead of leasing or leasing to purchase, it will be much cheaper in the long term. I also advocate for going the cheaper route for merchant accounts, which, in my case, was not local.

Calling companies up to ask questions is okay and will not obligate you to buy anything or sign up for anything. Tell them what you wish to have and how you expect to use it and find out how much it costs, thank them and tell them you are still researching an you'll be in touch. Get their name and extension so you can let them get the sale when you are ready. I called a bunch of companies when I was first looking. A local company rep came out and gave me a bunch of info and I was almost going to sign up with her but decided to research and came up with a way cheaper option!!

Goodness I'm a chatmassageplanet.netox.

 

[Pragmat]

As always, y'all rock

LOL akb, chatter away! You've offered some awesome insight.

I completely understand the approach of building a practice as though it were big and then you can grow into it. After all, if you don't plan bigger, it's tougher to get there. At least at this point, though, I think it's possible to overextend ourselves if we try to plan too big without having the business to back it up. So I think it'd be best for us if we started a little slower.

Since we're going to be more sporadic, I think ProPay is our front runner right now, as it allows us to do both online and cell phone transactions easily under one roof, for one relatively low annual fee (in lieu of a monthly fee). (Bonus: the annual fee also covers a merchant account through them and then I can transfer the money from there into whatever personal account I desire. Another bonus: there should be no hangup regarding the CVV2 #, as Propay doesn't require it.) I understand that when we process the CCs, we'll get whacked a little on the % and transaction fees, but with the low volume of CCs we'll be doing, I'm willing to stomach that (especially if we can avoid shouldering some of the other costs such as buying a terminal--at least for now--or some of the higher monthly fees, etc).

I don't plan on doing that much CC business, as we really prefer cash, but it IS good to have the capability so that we can sell GCs online, or in case we do something like a couples' massage in a client's home (where the total cost can easily exceed $200).

Should we start doing more CC business (selling GCs like wildfire or doing a lot of "Girls Night In"-type massage parties), or maybe if we start accepting CCs for individual sessions, we will absolutely consider purchasing a terminal. I imagine we'll have to somewhere down the road anyway, as we'll have an integrated chiro/massage/acupuncture wellness clinic, if all goes according to dream. So I AM copy-pasting all these great responses from y'all into a nice neat Word doc that we can pull up when the right time comes. (And I'm sure it's WHEN, and not IF.)

So anyway, thanks again for everyone's help!

Hugs,
~Jyoti

 

[paradoxical.lustre]

you know, another thing you could do is have your merchant account set up wherever you'd set it up and take a manual swiper with you to out calls. it only costs like $25 and you just slide the clients card on it and it gives you the info you need. it blocks their personal info on their copy so that you are not giving them a receipt with their cc # on it.