Anyone taking Visa through Quickbooks?

[ORclimber]

Anyone here taking Visa through Quickbooks?

http://merchantaccount.quickbooks.com/j/mas/signup?CMP=DMC-trial2&p_prioritycode=trial2

They waive the setup fee so it's 17.95 mo + .23 transaction + 2.39%.

Some customers like to pay with Visa for the airline miles etc., others can't afford to pay cash at once. Thinking about doing this to ease cashflow.

Are there better deals?

 

[Menchhofer]

I just signed up with Global Payments.....they contacted me believe it or not.

Visa MC touch tone capture just use the phone..NO forms No batch transmittal easy...

$5.00 a month and 3.49% not bad... I will try it for a while and see how it works out

 

[jimmyq]

I offer Paypal.com as credit card payment option but I have only had one taker so far. I have the account for when I was Ebaying a lot. I think its $0.30 plus 3% per transaction, cost to the receiver of funds. Goes in to an online balance account, trasnferable to credit card or bank account when needed, few days wait I bet.

 

[xander9727]

I usually don't offer to take cards. If it is going to make or break getting the job I'll allow it. I use my friends machine. He owns a courier business and does a lot of cards. He only pays around 1.75%. He runs the card and I invoice him less 2%. This helps both of us because he shows more gross sales and keeps me from having to manage and pay for another service.

If you share a machine make sure you check with your accountant to ensure you're staying within the bounds of the law.

 

[Nickrosis]

He shouldn't be showing that as sales. It should be some other form of income and should really be footnoted on a balance sheet.

 

[Newfie]

Nick, it really isn't sales or income other than the .25%. It's just laundered tree money.

You are correct though in that he shouldn't be showing it as sales. That's just dishonest accounting, especially if the purpose is to make his business look better for the purposes of obtaining credit.

 

[xander9727]

It's not dishonest accounting. His net profit only increases the .25%. He makes the sale and pays me for the work. Easy to understand if you ask me. The only issue could be liability and that has been taken care of legally. It may be creative accounting but not illegal or unethical. General contractors do the same thing when they sub out work. Think about it.

 

[Nickrosis]

I did. And I still can't swipe cards for people and claim them as sales.

Like Mike said, the .25% is gross profit. The whole amount is revenue but you must counter that with the liability created since he then owes you money.

 

[Treeman14]

Creative accounting? Good one. Can you say ENRON?

 

[xander9727]

Are you on a cash based or accrual based accouting? You need to record the appropriate liability (matching principle) as with all transactions. Business' are measured by both gross sales and net profit.
This type of transaction will increase your net sales but will have little affect on the net profit. I adhere to GAAP! Creative accounting takes place everyday in the world of business. You can significantly change profit, assests, liabilities, taxes, etc. by switching from LIFO to FIFO, straight line depreciation to declining balance depreciation, etc. What you use is what you use. You can use which ever benefits you most, but you cannot continually switch back and forth. If you're a public company you need to include a note on this. If you're a private company......

It's not that hard. If a lending institution only wants gross sales and net profit and you provide an honest report, it is their oversight for not requesting detailed financials. Do you really think this is significant? Most banks will allow self employed individuals to provide a stated income if you don't have enough history or are a sole prop. The catch is that these loans typically have a higher rate, closing cost, etc.