Contract/Freelance CFI Payments?

flyingbum

flyingbum

Needz Re-Edjamacayshun
Hey Y'all. I was wondering if any of you had some experience with your own payment processing? I'm asking because I have thought about using "Square" or "Paypal Here" card readers. Some web research indicates both have their own issues. I like that the Paypal app can also process checks and Paypal also offers a Debit Mastercard. But I guess a trip to the bank isn't so bad if needed. Some of the online horror stories of Paypal are awful, everything from account lockouts to poor customer service. Square has no customer service, (the biggest online gripe) just a help FAQ and e-mail support.

So, how do you guys take payments from your students?
Can you tell me about your "Square" or "Paypal" experience?
Anything else or other options I should consider?

Thanks for any input.
 
I don't process too much of my business through square, but for the past year or so I've been using them and haven't had a single issue. They've gotten better about transferring the funds directly into your bank account. It used to take about 5 days to see your money. Sorry I don't have any expirience with PayPal merchant services, so I can't comment on what they have to offer. Coming from another independent cfi though, cash is king! Those fees add up quick
 
When I freelanced, I just sent my student an invoice ("request for payment") after each flight, or weekly, depending on how often that student flew. Then they can pay either using a card, or paypal account, or eCheck, their choice.
 
I take cash or check, and give them a receipt from a carbon-copy receipt book. The receipt book is handy for doing taxes at the end of the year. I suppose I could take cards, but I don't see any reason to pay a fee that I don't really need to.
 
I get about 75% check, 20% PayPal, 5% cash (just guessing). I tell my students anyway they want to pay is fine with me. Checks are easy and work best for most people.

I have a Square account, fees are very reasonable and it's easy to use...I figured it would get a lot of use, but I have never processed a customer card with it.

I used to send PayPal invoices to people who liked this, but one student said I should just send him an email invoice and then he'd send me the money himself so I dont get hit with the fees... that's been working great. I have a few students who prefer this. I just send them the invoice out of Quickboos at the end of the day and they usually pay within a few minutes.

I use QuickBooks for all my accounting, so regardless of how someone pays, they either have an invoice or sales receipt in Quickbooks. I generally go home at the end of the day and update QB, only takes a few minutes and that's my authoritative record.
 
Thanks for all the input guys. Cash or check seems to be the best way. Just a short trip to the bank on the way home can save me 2.7 - 2.75% in fees.

MattXJ7 Indeed! Cash is king!

Vyse How do you process an e-check? Paypal? or through a bank?

drunkenbeagle Yes I think that's a good way to keep records. Gotta keep "The Man" happy.

rframe Not sure I will do enough business to justify using Quickbooks. But I will use some sort of accounting. Maybe a custom spreadsheet and make my own invoices with a template in MS Word.

I wanted some feedback because I looked at some of the horror stories online about Paypal, and MANNN! It's crazy! People are saying they will just lockout your account for no reason and hold your funds for 180 days. I just don't want any trouble getting paid. I'm poor enough as it is, CFI and whatnot. ;)
 
flyingbum said:
Thanks for all the input guys. Cash or check seems to be the best way. Just a short trip to the bank on the way home can save me 2.7 - 2.75% in fees.

Vyse How do you process an e-check? Paypal? or through a bank?

I wanted some feedback because I looked at some of the horror stories online about Paypal, and MANNN! It's crazy! People are saying they will just lockout your account for no reason and hold your funds for 180 days. I just don't want any trouble getting paid. I'm poor enough as it is, CFI and whatnot. ;)
Click to expand...

Yes, I did it by PayPal. But that was before the age of deposit-checks-via-mobile-app. If I were taking checks now, I'd probably do it that way to save on fees.

One advantage was that it was easy at the end of the year to total up everything, as PayPal keeps pretty detailed transaction records and has a good reporting system.

FWIW, I never had any problems with the account getting locked up, but I have heard of it happening, mostly to people who suddenly have a high volume of activity.
 
flyingbum said:
Hey Y'all. I was wondering if any of you had some experience with your own payment processing? I'm asking because I have thought about using "Square" or "Paypal Here" card readers. Some web research indicates both have their own issues. I like that the Paypal app can also process checks and Paypal also offers a Debit Mastercard. But I guess a trip to the bank isn't so bad if needed. Some of the online horror stories of Paypal are awful, everything from account lockouts to poor customer service. Square has no customer service, (the biggest online gripe) just a help FAQ and e-mail support.

So, how do you guys take payments from your students?
Can you tell me about your "Square" or "Paypal" experience?
Anything else or other options I should consider?

Thanks for any input.
Click to expand...

Cash only if I freelance.
 
Vyse said:
Yes, I did it by PayPal. But that was before the age of deposit-checks-via-mobile-app. If I were taking checks now, I'd probably do it that way to save on fees.

One advantage was that it was easy at the end of the year to total up everything, as PayPal keeps pretty detailed transaction records and has a good reporting system.

FWIW, I never had any problems with the account getting locked up, but I have heard of it happening, mostly to people who suddenly have a high volume of activity.
Click to expand...

Yeah, I noticed Paypal does have a good accounting record as well as the ability to send invoices. I think i'm going to try to stick with cash or check to save on fees. Thanks for your input.
 
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