Payment Options: The Benefits of PayPal

As business owners our goal is to build long lasting relationships with our clients.  We make adjustments and changes along the way, but the bottom line is getting paid on time, every time.  From time to time you may find that you have a “slow pay client”.  You know the client that takes more than 30 days to pay or takes longer than whatever your payment terms are.  How do you handle this?  Have you considered possibly offering the client more payment options?

Alternate Office Solutions offers several forms of payments for clients.  Of course the old standard pay by check is the first option.  However we also receive payment via Direct Deposit and PayPal.  I like Direct Deposit because funds are available sooner, and it eliminates a trip to the bank to make the deposit.

PayPal offers another quick and easy form of payment in the form of credit card payments.  You have the convenience of sending clients an invoice via PayPal and when they receive it, they can decide to either write a check and mail it to me, or use the link provided in the emailed invoice to pay via credit card online.   We have actually received payments as fast as 15 minutes after we have emailed the invoice via PayPal.  It was a nice unexpected surprise.

PayPal is a great resource for those business owners who do not have a merchant account.  This service allows you to accept Visa, MasterCard, American Express, and Discover card payments for those clients who prefer to pay by credit card.  Not only can you receive payments with PayPal, you can also send money with PayPal.  An added benefit to having a PayPal account is you can request a PayPal Debit Card which acts just like your personal debit card.  The PayPal debit card comes with the MasterCard logo on it and allows you to make debit and credit purchases.  When clients pay you via PayPal your funds are deposited directly into your PayPal debit card account.  You can choose to get cash from the ATM, use the card to make purchases or transfer funds of equal to or lesser value than the amount that’s available on the card at the time.  Transfer of funds from PayPal to your bank account takes 2 to 3 business days.

As a virtual business support service provider PayPal comes in handy at those times when extra expenses are incurred for a client.  Whether sourcing for photos or running to the local office supply store to pick up needed supplies for a client’s project, I can ask the client to send money to the company PayPal account and use the card immediately to make the purchase.  There are times when I may just make the purchase with my own funds and bill the client later, but for those times when you to incur the extra expense, PayPal really does come in handy.

Benefits of use PayPal:

• No monthly fee for the service
• The fees charged by PayPal are tax deductible
• A great way for clients to quickly send you money when additional expenses arise
• Less expensive than having a merchant account
• Doing your part in helping the environment by saving on paper
• Provides client a way of paying your invoices with a credit card

The bottom line is your bottom line.  If offering your clients different options to pay allows for your invoices to get paid on time or even faster, then why not?  The 2.9% fee plus .30¢that comes out when you receive payment is well worth it.  For example, if you are sent $100.00 USD by credit card, the fee would be $3.20 USD ($2.90 + $0.30).

Remember with today’s economy being able to accept credit card transactions as a form of payment helps your bottom line.  You in turn can also use PayPal as a way of paying your vendors and sub-contractors.  It’s a win/win for all.  For more information on PayPal’s business services follow this link to their website: https://merchant.paypal.com/cgi-bin/marketingweb?cmd=_render-content&content_ID=merchant/home&nav=2.