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Educate me on what system to use for monthly recurring payments...

by link82
28 replies
...for my offline business!

Hey everyone!

Today, I received a call from a dentist that he would like to have a meeting with me asap. This is really exciting because it's my first offline business meeting (seo/marketing related) and if things go right--a monthly recurring income.

So now it's finally hit me--what if he is ready to sign a contract with me and to get the payment started? I've never had a business, so bear with me.

From experienced Offline Business Masters here , I'd like to know what has worked best for payments:

-Paypal: I have a personal account only, no merchant account. Should be able to set-up recurring payments. Cons: For merchant account, they charge 2.9% + $0.30 per transaction. Also, they can hold your money. Also, what if client is not familiar with Paypal? Not embarrassed to admit, I need the payment in my bank account asap.

Any charge back issues here?

-Get checks in person: Don't mind dropping by to grab a check but I want an automated solution in case the payer is lazy. Pros: check is in my hands, grab and go!

What solutions do you use if your client insists on using checks? (keep in mind, recurring payments! Any check by phone systems you use that work well?)

What do you use if they insist on credit card for the recurring payments? (any way to make charge backs less, or if requested, I can win more easily?)

I'm also thinking of using EchoSign, where I could include their check information or credit card information before they sign the contract. Would the Echosign contract hold up well if client raises any payment issues?

Thanks all.
#educate #monthly #payments #recurring #system
  • Profile picture of the author IngeniousBastard
    For recurring payments, Paypal can be one of the easier to set up and definitely one of the most recognized. There are others out there, though the names escape me at present. Do you have any type of merchant account set up through your bank? That would be another option.

    One of the things I've also set up so that I can take one-time credit card payments is the Square from squaredup.com They have a flat rate fee of 2.75% per swipe. No annual fees, or sign up fees. They also send you the device for free that you can plug into your smart phone (iPhone or Android) that you can use to swipe the card. I have no affiliation with the company, I just found it to be a make-sense option to take with me to give clients an option other than writing a check.
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    • Profile picture of the author Seth Bias
      Originally Posted by Ingenious******* View Post

      For recurring payments, Paypal can be one of the easier to set up and definitely one of the most recognized. There are others out there, though the names escape me at present. Do you have any type of merchant account set up through your bank? That would be another option.

      One of the things I've also set up so that I can take one-time credit card payments is the Square from squaredup.com They have a flat rate fee of 2.75% per swipe. No annual fees, or sign up fees. They also send you the device for free that you can plug into your smart phone (iPhone or Android) that you can use to swipe the card. I have no affiliation with the company, I just found it to be a make-sense option to take with me to give clients an option other than writing a check.
      Yes the Squareup swiper thing is AWESOME! You don't know how many times a big client has said they forgot there check book or something during our meeting and I pulled it out and they were amazed. Would recommend any offliner to get it because of how easy it is. (Not affiliated with the product just like it.) Other than that have them pay threw paypal I still have clients now who pay monthly through paypal.
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  • Profile picture of the author TrumpiaTim
    For automatic recurring billing (ARB), I would recommend looking into PayPal Pro or obtaining an Authorize.net merchant account.
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  • Profile picture of the author link82
    Wow--a lot of people here use Paypal! My only main issue with them is if they try to put a hold on the account for whatever reason. I'll also have to keep Square in mind--seems very useful and awesome.

    Any other suggestions? What about Echo Sign? Any other suggestions?
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  • Profile picture of the author Voasi
    Echosign is great for getting the client to agree to your terms, punch in their payment details and get you what you need.

    Having said that, what's going to save you if you accept credit cards and someone charges back is: PROOF!

    ...so, how do you get that?

    You make sure they input everything into email or some sort of correspondence. We like to use BaseCampHQ.com and have everything centralized so that if they decide to chargeback, we have all the documentation that states otherwise. We've had $7,000 chargebacks that we've won because they said "one thing" to their bank... and we showed them THE TRUTH of what was really said... game over for them.

    As for payment systems, using something like Electronic Check Payment Processing, Check By Phone Services is a solution. At some point, you can just print you own checks, as long they have agreed to it and give you their banking information. That's the best way to mitigate chargeback issues. We still accept CC, but 90% of our clients use banking information for us to process their accounts.
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  • Profile picture of the author Warrior Ben
    I use GoPayment by Intuit (Intuit GoPayment – iPhone credit card processing for mobile payments) for my billing and monthly recurring payments. It's actually a very slick service. First, you get a card swiper that plugs into your smartphone so you can take credit/debit card payments on the spot. It also integrates seamlessly with QuickBooks which makes keeping track of accounting a breeze.

    As for recurring payments, you just log into the website and set up your monthly payment. It takes less than 5 minutes. They also provide you with a Recurring Payment Authorization form for your client to fill out.

    I have been extremely pleased with the service and the rates are better than PayPal. I also think there is a professionalism about it that PayPal doesn't have. It may just be me but I feel that PayPal looks kinda cheap if you are using them as your payment processor for offline clients. Not a knock on anybody who uses it, just my humble opinion.

    Anyway, I hope this helps!
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    • Profile picture of the author RRG
      Originally Posted by Warrior Ben View Post

      I use GoPayment by Intuit (Intuit GoPayment – iPhone credit card processing for mobile payments) for my billing and monthly recurring payments. It's actually a very slick service. First, you get a card swiper that plugs into your smartphone so you can take credit/debit card payments on the spot. It also integrates seamlessly with QuickBooks which makes keeping track of accounting a breeze.

      As for recurring payments, you just log into the website and set up your monthly payment. It takes less than 5 minutes. They also provide you with a Recurring Payment Authorization form for your client to fill out.

      I have been extremely pleased with the service and the rates are better than PayPal. I also think there is a professionalism about it that PayPal doesn't have. It may just be me but I feel that PayPal looks kinda cheap if you are using them as your payment processor for offline clients. Not a knock on anybody who uses it, just my humble opinion.

      Anyway, I hope this helps!
      Ben, I'm not familiar with Intuit's solution, but I don't agree with you about Paypal.

      When you tell clients that it's the leading online payment processor . . . that it's owned by ebay . . . and that it's secure because they don't have to reveal their credit card number to you, most people think that's good enough.
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      • Profile picture of the author Warrior Ben
        Originally Posted by RRG View Post

        Ben, I'm not familiar with Intuit's solution, but I don't agree with you about Paypal.

        When you tell clients that it's the leading online payment processor . . . that it's owned by ebay . . . and that it's secure because they don't have to reveal their credit card number to you, most people think that's good enough.
        Yeah, I see what you are saying. I guess I'm just used to using it with more Internet Marketing related stuff and it doesn't have the same feeling with me as using a full blown merchant service solution.

        With that said, I don't want to discourage others from using PayPal. I have not used it in any of my offline marketing, so I don't have any experience to say that it doesn't work or anything like that.

        I still recommend GoPayment for the main reason that it synchs up seamlessly with QuickBooks. And if any offline marketer is not using QuickBooks, or some other accounting software, they are going to be in for a not-so-good treat when tax time comes around! Pain in the a$$ to do taxes if you have not been keeping good records!

        -Ben
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  • Profile picture of the author krzysiek
    In regards to your comments, Ben, about PayPal.

    I do agree that it may not look as professional. A lot of people MAY have a PayPal account already, but no doubt some don't. For those people who don't, it's just much easier and professional to bill them right there, on the spot - in front of them.

    Further, I have had several experiences with PayPal locking the account requesting ridiculous amounts of ID. It has happened to myself, and several friends. The last thing you want is that happening when business starts taking off for you.

    Now I realise a counter arguement that will pop up soon will be along the lines of 'I have been using PayPal for X years without any problem' and my response is simply: lucky you.

    Lucky you because you have not had to deal with their helpless support team. Lucky you, because my business took a fall when they lock me out of withdrawing money. Need cash flow - when they block it, bad things happen!

    So, I am not mocking them - because I use them very often (in fact I have around ~100 customers per week paying me for eBay goods with PayPal) but I have experienced issues with them on more than one occasion previously.

    I doubt a service provider like Intuit would cause their customers that much grief!

    Just an IMO guys!
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    • Profile picture of the author rbecklund
      I either email an invoice and they mail me a check or I send a Paypal invoice and get paid that way. Paypal can be a hassle though cuz some people aren't used to it and can't for the life of them figure out how to make the payment. One of those card swipers sounds super cool though.

      I've had over 4,000 payment through Paypal and never have had a problem.
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      • Profile picture of the author BrashImpact
        We have been using Paypal for Years... and have had one issue over that 4 to 5 year period, and it was our fault.. Pay pal definitely marches to their own drum beat... however with that being said...

        We have processed A significant amount of payments and invoices over $10k for one transaction with never a problem...

        The key is having multiple options for any client comes any solution...

        Just my 2 cents

        Good Luck..
        Regards,
        Robert

        Mobile Fusion Texting
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        • Profile picture of the author midasman09
          Banned
          Ever since the Banking Industry allowed "Checks By Fax or Phone"....I've used a software program where I enter customers Check...then print it out on Check Paper....stamp "For Deposit Only" on back and ....with recurring monthly clients....I simply open the program on my pc...click onto my client's name and hit..."Print"!

          No "3rd party" to contend with.

          I now use "Q-Check".

          Don Alm
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  • Profile picture of the author stone2010
    I personally use paypal with my clients. None of my clients were familiar with paypal and I told them about it and also mentioned how secured it is, that all the information is safe and I don't even get the credit card number, paypal does.

    Years ago my ebay account was hacked and so was my paypal account, When I noticed Paypal took care of it right away with no waits since then I gained a lot of confidence on paypal. BTW my account got hacked because my wife opened a fake paypal email that required to enter account and password she didnt know so she did it since it looked legit. About getting the money, usually when the money is in my paypal account, i can withdraw it in less than 4 days
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    • Profile picture of the author TopKat22
      I have used paypal for years with many offline businesses and they actually thanked me because by them getting an account it opened up a whole new world for them.

      As for troubles with paypal, it is a bank and under all the same guidelines of a bank. If the activity seems "suspicious" they may put a hold on the account. However, I still like them.

      I used banks and other processors in the past and they have fees and issues and customers can chargeback on them and if you start making too much money or things look "suspicious" , they can put holds on accounts, too.

      I've had holds on accounts in paypal and banks and they all eventually worked out.

      But all this is a bit premature----you don't have the business yet.

      I would suggest you make up a contract with blanks for duration of project, date and cost and detail out that the payments are prepaid for each service.

      I found out the hard way that once a service is rendered, trying to collect is a lot harder than getting the money and doing such a great job that they want to pay you to continue.

      Regardless of which method you use, get at least some if not all payment up front.

      Edit: I forget to say Congratulations on getting your first meeting!
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  • Profile picture of the author Mike Grant
    If you're using PayPal or Authorize.net, you should really, really stop using them.

    I use Freshbooks with Braintree.
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    • Profile picture of the author Nick Surran
      Originally Posted by Mike Grant View Post

      If you're using PayPal or Authorize.net, you should really, really stop using them.

      I use Freshbooks with Braintree.
      Why do you say this about Authorize.net?
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  • Profile picture of the author David Miller
    Since this is your FIRST client I think you should concentrate on getting the deal done and use something easy and quick for payment....like paypal....you can always change to something else later on if you have to.

    I've made the mistake too many times about worrying about the details and losing sight of the goal. Get the deal done and the rest will follow.
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  • Profile picture of the author Hugh
    Ask your bank if they support ACH (auto clearing house) transfers.

    Hugh
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  • Profile picture of the author IdrisSG
    I just read a thread that mentioned this website:

    Check by Phone / Check by Fax / 30 Days Absolutely Free

    Check it out see if it fits your needs.

    Good luck.




    Originally Posted by link82 View Post

    ...for my offline business!

    Hey everyone!

    Today, I received a call from a dentist that he would like to have a meeting with me asap. This is really exciting because it's my first offline business meeting (seo/marketing related) and if things go right--a monthly recurring income.

    So now it's finally hit me--what if he is ready to sign a contract with me and to get the payment started? I've never had a business, so bear with me.

    From experienced Offline Business Masters here , I'd like to know what has worked best for payments:

    -Paypal: I have a personal account only, no merchant account. Should be able to set-up recurring payments. Cons: For merchant account, they charge 2.9% + $0.30 per transaction. Also, they can hold your money. Also, what if client is not familiar with Paypal? Not embarrassed to admit, I need the payment in my bank account asap.

    Any charge back issues here?

    -Get checks in person: Don't mind dropping by to grab a check but I want an automated solution in case the payer is lazy. Pros: check is in my hands, grab and go!

    What solutions do you use if your client insists on using checks? (keep in mind, recurring payments! Any check by phone systems you use that work well?)

    What do you use if they insist on credit card for the recurring payments? (any way to make charge backs less, or if requested, I can win more easily?)

    I'm also thinking of using EchoSign, where I could include their check information or credit card information before they sign the contract. Would the Echosign contract hold up well if client raises any payment issues?

    Thanks all.
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  • Profile picture of the author CoachMikeH
    PayPal and ClickBank can do the recurring payments. I recommend ClickBank because it is the one payment, as opposed to the percentage fee that PayPal gets. You can get affiliate commissions and paid referrals and ClickBank will pay them without you having to worry about it. This is a great way for you to get more leads.
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  • Profile picture of the author mrmatt
    Check with your bank to see what they offer. I just signed up for ACH (direct withdrawl) from the clients checking account. This could not have come at a better time as PayPal in a couple of weeks will be freezing my accounts. Aren't they nice? *******s! Well at least they informed me ahead of time instead of just doing it.
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  • Profile picture of the author link82
    Just an update--the client is on-board. He signed the contract earlier today (Echo Sign) and was ready with his credit card... until I notified him he'd be receiving the invoice through e-mail within the hour. So I used Freshbooks and hooked it with my Paypal account. Waiting for the payment; it's a matter of him checking his email.

    As soon as I get another couple of clients, it might be a good idea to spread out. I'm curious about Authorize.net next and a check deposit solution.

    Lots of great stuff here. Thank you all!
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  • Profile picture of the author Voasi
    Congrats! That's awesome!

    This will be useful for other warriors - how did you attract the client? What services did you close with him?
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    • Profile picture of the author link82
      Originally Posted by Voasi View Post

      Congrats! That's awesome!

      This will be useful for other warriors - how did you attract the client? What services did you close with him?
      Thanks Adam! It's really funny you posted this--I was going to post my experience after I received payment from the client.

      Not sure if I've jinxed myself or what--when I went to the meeting, everything went well. He signed the contract, had his credit card ready, introduced me to someone else who had some of his login credentials, etc. I informed him that he'd be receiving his invoice within the next couple of hours.

      I sent it. It shows he saw the invoice this morning around 10a.m. but he hasn't paid. I do know that he takes a day or two sometimes to get to stuff but I'm still a bit nervous.

      I'm thinking of sending him an email tonight... something along the lines of mentioning how the contract states yesterday as arb date, so if he can make payment asap, I can get started. Otherwise, we are wasting his time. Okay idea? [Lesson learned for future: send invoice before I go in for the meeting; guide them to paying the invoice while I'm sitting there].

      He's already given me his Google Places pin # (need to fix it) and other details. So what's the hold-up? :O

      As for how I got this person: I actually bought your/Adam's/Voasi's WSO (in his signature... It has a lot of awesome stuff in it and I've learned a lot. I immediately got to experimenting and now I have a bunch of stuff ranking to show as example. However, I will also credit Jerome's WSO, Offline Video Bazooka.

      So, without giving too much away, I combined elements from both WSO's, the video components. Then, I contacted people from page 2 & 3 & 4 with personalized videos (for each prospect, using each one's name, yep that personal).

      I only made 7 videos and got a response within an hour from this guy. I think it's luck (?) I got a response from only a bunch of 7 but if (when??) I get payment (tomorrow?), this will be awesome.

      There's a little more to each step. I will make a post with more details if I can get this guy to bite.

      Thanks for all the help here. Also would like to mention that I bought those two WSO's for super cheap (around $20 total) and now I have a basis for approaching clients on a stable ground. Of course, reading isn't the only thing; experimenting and actually taking action to contact prospects? No one else can do this for you.

      Even if this falls through, I've learned a lot. You bet I will be re-visiting these WSO's and refining my method.

      Keep it rockin', Warriors!
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  • Profile picture of the author richrajeevkistoo
    Start with paypal, the easiest one. Worry about technicalities later.

    It is also true that paypal is a real nightmare sometimes ( more than sometimes)...

    but by the time you get 10 clients on board, you should have an alternative robust solution to take recurrent payments online.

    my 2 cents

    rajeev
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  • Profile picture of the author Voasi
    Sometimes, it can take a week or so to have the client fill out the EchoSign or pay your invoice. What we try to do is get all the banking information within our contract while we have them on the phone, so the ONLY thing they need to do when getting the contract is sign it. Remove as many hurdles as possible so they don't have to think.

    Getting the Google Places pin is a good step and I'm sure he will close if he's already "getting in bed" with your company like that.

    As for how I got this person: I actually bought your/Adam's/Voasi's WSO (in his signature... It has a lot of awesome stuff in it and I've learned a lot. I immediately got to experimenting and now I have a bunch of stuff ranking to show as example. However, I will also credit Jerome's WSO, Offline Video Bazooka.
    That's great to hear! Glad you put it into action and got traction from it. I'm ALWAYS HOPING people put into action these action plans I put out, because THEY DO WORK, the just require a little dash of SWEAT

    I was seeing success like that as well - for every 10 I sent out, I would get 1 response.

    I'm big on knowing your numbers: if you know your numbers, then you know what to do to scale up your business - period. Test it a few more times to make sure your numbers are consistent, then you hire/educate/train to do the videos and continue to put "bodies" in "seats" (virtual seats if that's your cup of tea) and scale this up to the mountain!
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  • Profile picture of the author Kelvin AIP
    http://FeeFighters.com/ might b helpful to u...
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