Question

When you bill a client for recurring services, what service do you use? I've been using PayPal but those fees are really hurting.  

Answer 1

My accounts have become more efficient since using Xero. It has automatic invoicing that can be scheduled for a re-occurring period- and send an email on the same day and time (e. g. 7th day each month). The email link opens up a payment box- and also an option for Stripe integration. There is also an option for a customer to accept auto-pay when receiving their monthly invoice. (similar to DD functionality- but without signing a DD).  

Comments

I've heard of Xero, good to get feedback from someone who has been using it. I like anything that makes that process easier.  

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@visible Xero is simply amazing. I went from horrible sage to peace and quiet with Xero. It superchargers your cash flow with automation! And it’s cheap!  

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@visible I forgot to mention GoCardless for DD payments too! Brilliant.  

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@krissykrista second this!  

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Guess I better give it a try then, thanks !  

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I use Xero and yes it's good. Doesn't prevent PayPal fees though and had some problems integrating w pp but generally good

Answer 2

Those fees are pretty good, normal merchant accounts charge more. Plus those are all tax deductions on your income.  

Comments

Are you talking Paypal or Stripe?  

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PayPal and Stripe charge the exact same for processing

Answer 3

ACH if you can get them too / old school but checks / And paypal for people who pay with CC

Answer 4

Veem. com 1$ flat fee for domestic payments.  

Comments

Will look into, thank you

Answer 5

Call your bank to connect with authorize. net

Answer 6

Whatever platform you use, build the fees into your pricing.  

Comments

Never thought of this, yep, I'll do!  

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@boatload Best suggestion.  

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Dumb suggestion, you are raising the amount of money you invoice for thus raising the amount of money they charge you in fees.  

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@bowyer673 sure. But you will be keeping more. It’s all a right off, so not something I worry about.  

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If they take more money out for the fee, you do not keep more money.  

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@bowyer673 you do: invoice/(1-processing fees)=final bill

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@bowyer673 yes you do. If I charge $1000 and the fee is $50 and then I raise my price to $1200, the fee doesn’t go up to $250. I keep more.  

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2. 9% of 1200 is more than 2. 9% of 1000

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@bowyer673 of course it is. And 97. 1% of $1200 is more than 97. 1% of $1000.  

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So asking for more results in more charges for merchants fees

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@bowyer673 no shit. It also results in you getting more money.  

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And then when you get more of that money, you end up paying more in taxes because the difference you saved by marking up for merchant fees doesn't cover the difference in income tax. So to shelter that money from income taxes you have to spend more for deductions, so in the end it's a wash.  

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@bowyer673 that makes no sense. What you are insinuating is that there would be no difference to my bottom line whether I charge a client $1000 or $2000. There is no way I don't make more money by charging more money, no matter what my tax liability is, with maybe a few rare exceptions in jumping up a tax bracket or something like that.  

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The example was 1000 versus 1200

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If you change the number from 1000 to 2000 then yes, I would be financially worth it.  

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But your suggestion to simple add the merchant fee to the client fee is financially pointless unless you"re going from 1k to 2k, doing it from 1k to 1. 2k is just adding 160ish bucks to your profit margin, which taxes will negate.  

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Maybe I'm just not understanding your point of view because my clients are paying 10 - 40k a month using wire which in total costs me $30 a month. Other than that I use PayPal for everything since 2. 9% for credit card processing isnt all that bad.  

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And I see bigger benefits from simply adding merchant fees to adding profit through getting higher paying clients and accepting merchant fees as part of doing business and a complete built in tax deduction.  

Answer 7

Paysimple with ACH

Answer 8

Have had good results with Intuit