SVA Forum

ASAP Admin · Moderator Joined: 12 Jul 2006 Posts: 854 Location: Glasgow

I am considering changing my accounts/invoicing software to Kashflow and notice that you can include a Paypal button for invoices to be paid via this. However, I know that there are fees charged for using this service.

Does anyone use Paypal for invoices to be paid and if so, do you pick up the cost of the fees or do you have the clients pay this too since they have chosen to pay this way?
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Lyndsey Gilchrist
ASAP Admin
Call Team

OfficeStuff · Posted: Wed Apr 01, 2009 9:25 am Post subject:

I don't use paypal myself, but if I did, I would expect the client to pay the cost. After all, it is entirely possible to pay you by cheque, or by internet banking... unless of course he's putting you on his credit card via paypal.

I just don't like paypal - see previous posts on paypal fraud.
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Carole Meyrick
Office Stuff
Perfectly Practical Office Support

dawnjlane · Posted: Wed Apr 01, 2009 9:50 am Post subject:

Hi Lyndsey

I use Kashflow and also used to ask one of my clients to pay via PayPal. I absorbed the costs that PayPal charged and reclaimed them via my tax return. My reason for this was that although he sent a cheque to me as soon as the invoice hit his desk, it would take my bank about 10 days to clear the cheque. I thought that paying the fees was a reasonable trade off to be able to get my hands on the money quicker, and eased cashflow in/out of the business.

Also, with PayPal, it can take around 4-5 days for the money to be transferred from their account to yours, even though the money is transferred from the client's account immediately (so not only do they get your fee but also interest on your money).

Goggle Checkout fees are on a par with PayPal but the money is paid automatically into the account of your choice within 2 days of the payment being successfully charged to your clients. They also offer free fraud protection; after the week I've had with PayPal and fraudulent activity on my account (still ongoing) have decided to cancel my PayPal account.

I think you really need to go with whatever you are comfortable with.

Dawn
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sara - Office Bird · Posted: Wed Apr 01, 2009 3:03 pm Post subject:

Hi Lyndsey,

A few of my clients pay me via Google Checkout. I send them a Google invoice and they pay from there. There is a charge but it's minimal and if you use Google Adwords and link the accounts up them you can offset some of the costs.

I'd be really careful with Paypal after reading stories on the likes of www.nopaypal.co.uk www.nopaypal.com etc

I have also seen these issues being discussed on business forums. By all accounts Paypal lock accounts and refuse to give you the money back. They claim to be investigating fraud and this can take months. Then they decide if it is fraud or not and either give the money back or keep it. Advice seems to be if you use Pay Pal ensure you remove the money from the account immediately.

hope this helps
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Sara
Office Bird
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caroline · Posted: Wed Apr 01, 2009 4:11 pm Post subject:

We use the Kashflow paypal system and absorb the cost. To be honest it's pure laziness on my part - I get paid quicker and it means I don't have to spend 1/2 an hour standing in line at the post office to bank the cheque. That time offsets the cost of the fee Paypal charges.

My preference is defo getting it via BACS transfer tho 8)

Given that Paypal could theoretically block all transactions we only use it with recurring payments for existing clients - I wouldn't do it with someone who hadn't coughed up previously!!!
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ASAP Admin · Moderator Joined: 12 Jul 2006 Posts: 854 Location: Glasgow

Thanks for the replies. I might just continue with the way that I am going at the moment but it is something to consider in the long run.
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Lyndsey Gilchrist
ASAP Admin
Call Team

OfficeStuff · Posted: Wed Apr 01, 2009 7:15 pm Post subject:

I have just cancelled my Paypal account. Just not trustworthy enough, and I've had problems in the past with fraudulent purchases. Goodbye.
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Carole Meyrick
Office Stuff
Perfectly Practical Office Support

noreenfairbairn · Joined: 10 Nov 2006 Posts: 62 Location: Scottish Borders

Hello Lyndsey
I use Paypal for my holiday company and I've only had one problem with it, which was my fault for putting in an incorrect email address. I always add 2.5% onto the guests bill to cover the cost and everyone is usually happy with that. Although, they are usually paying in a foreign currency and paypal is cheaper than raising a bankers draft.

Sorry Lyndsey, that probably wasn't very helpful!
Noreen
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