Credit card acceptance

[zach_wilson]

So here lately I have noticed that some of the bigger names in the industry advertise they accept visa, mastercard, amex ect. I wonder would this be beneficial to start offering as I understand that most the time one would rather pay cash, however would it be nice for you to have an option to "play now and pay later"?

[Keenan]

So here lately I have noticed that some of the bigger names in the industry advertise they accept visa, mastercard, amex ect. I wonder would this be beneficial to start offering as I understand that most the time one would rather pay cash, however would it be nice for you to have an option to "play now and pay later"?

 

I have started to take credit card and get a few more responses now. I guess for some people it may be easier to use credit rather than using cash.

 

Keenan

[JoeBlow]

From the client perspective:

As a married man, I'd never want the paper trail and permanent record of transaction that comes with credit card purchases. I also prefer maintaining my anonymity--which payment by cash allows.

[Bart]

I would get the ap for your phone and the little reader. Not that expensive. The fees are actually pretty good compared to some of the others and ability to take a credit card when the client is "short" by mistake of course. That said you may want to limit the number of transactions you take a month as that can cause some bookkeeping issues and alert authorities. That said incorporate and you wont have that hanging over your head.

[Guest countryboywny]

That said incorporate and you wont have that hanging over your head.

 

Good advice, Bart. I have to tell you that your last comment about incorporating gave me a giggle. I can see Zach's new business card.. Zach Wilson, Inc.

bringing pleasure to the masses since 2009

 

and who says corporations aren't people! LOL

[zach_wilson]

Zach Wilson, Inc. bringing pleasure to the masses since est.2010. Hmm I quite like that tag for a website.

[jawjateck]

I would love to get away from using cash. It's an annoying waste of time to retrieve c-notes from the bank. While I don't have the confidentiality concerns that some clients have, I just cannot see myself handing one of my cards over for an escort to swipe, unless he was an oft-hired provider who had consistently proven himself trustworthy.

[SteveEscort]

If you do go inc have a general name that doesn't identify who you are and NEVER publicise the name. I have a business bank account for my escort work under a name which is general XXXXXXX Enterprises (my trading name in place of the xxxx etc) that way wives and partners can't look it up on the Internet and have it trace back to you

[Electra 225]

Zach, I've given my card to a couple of well-known (to me) providers with whom I have met on enough appointments to have built up a reasonable level of trust. They use the application and card swipe attached to their smart-phone (most are i-phones or similar) and the transaction is quick and easy (and I don't have any confidentiality issues with these providers). In looking into the application, I think that it is called "Square", the transaction costs are very moderate (much less than what standard credit card transaction services charge) and the funds are immediately deposited (within 24 hours and with immediate confirmation that the transaction is "good"--or not). For some providers, I have shown them how to set up a D-B-A ("Doing Business As") designation and obtaining a taxpayer identification number from the IRS so you can open a bank account in your "business name" to keep all of the records "straight". I've asked several of the providers I meet with on a regular basis how the credit card acceptance helps their business and most say that it has helped--especially if they are either travelling or if they are seeing travellers from out of town to their location. Obviously, to do this takes a bit of time and work, but it sounds to me like it would be worth it to let potential clients know they have payment options. Good luck!!!

[+ sam.fitzpatrick]

Zach - the important thing to do is make sure that you are depositing the $$$ into a business account (one designated by your bank as a business account) and not a 'consumer checking account.' Most banks have restrictions on using a personal account for business purposes. Receiving deposits made by a company that provides such credit card services into a personal account type can result in the bank closing your account for suspicious activity.

[gallahadesquire]

Good advice, Bart. I have to tell you that your last comment about incorporating gave me a giggle. I can see Zach's new business card.. Zach Wilson, Inc.

bringing pleasure to the masses since 2009

 

and who says corporations aren't people! LOL

 

Somehow, I think LLC is more appropriate than Inc., but that would be me. Where is citylaw1 when we need him?

[RockHard]

Good grief. Beware of business advice from an escort board.

 

Where is citylaw1 when we need him?

 

He's hating on Daddy at the moment and offering free legal advice over in Oz-land. There's certainly lots of bad advice on this thread.

 

Going INC will cost you dearly. The numerous fees are not cheap. Most good lawyers/accountants will advise against unless your business is pulling in a minimum of $150,000 a year. If you are a one-man operation, it's pretty silly to consider INC.

 

You need an Acquirer to get a credit card reader, which means filling out all kinds of legal forms. There are at least four fees associated with accepting credit cards, and a minimum gross in sales is required per month. If your small business is not set up properly, especially if the service is illegal, you will expose yourself to risk that could make your head spin and land you in jail.

 

Dreaming can be fun. Reality less so.

[KMEM]

You are correct RH, if not diplomatic.

 

Best regards,

KMEM

[SteveEscort]

 

You need an Acquirer to get a credit card reader, which means filling out all kinds of legal forms.

 

 

Nope...... In the USA - Square will offer any small trader a credit card account using an iphone/android card reader which attaches to your phone. Here in the UK the service is provided (exactly the same way) by iZettle. If I swiped a guys card tonight the money is in my business account with 4 UK banking days. If it's over £250 then the £250 is paid within 4 UK banking days and the remainder 15 banking days later. You can also accept deposits without being able to swipe the card to a maximum of £100 per day per card, perfect for out of town visits, where an up front fee for travelling may be appropriate.

 

When i set up with iZettle, all I had to do was confirm my business account by sending them an instant bank to bank payment of £1. I then paid myself £10 using my own card to see how the set up worked and they paid me my money less their 2.75% fee within 5 days

 

https://squareup.com/

 

http://www.izettle.com/gb/

[SteveEscort]

Zach - the important thing to do is make sure that you are depositing the $$$ into a business account (one designated by your bank as a business account) and not a 'consumer checking account.' Most banks have restrictions on using a personal account for business purposes. Receiving deposits made by a company that provides such credit card services into a personal account type can result in the bank closing your account for suspicious activity.

 

Possible but unlikely. Over here there is no obligation to open a business bank account if you're a self employed sole trader. I have one, purely for personal reasons because clients ask for my bank details to pay a deposit and I don't like giving them my personal account. I have to pay £5 a month for my business account because I transact less than £1000 a month through it. The more you transact the more you pay.

 

If he started depositing $100,000 they might think that unusual but they wouldn't flag up an account with $1000 a week going into it. He could work and be paid cash like people were in olden days, it still happens today in many professions. He may work in a fancy restaurant getting $300 a week tips. They wouldn't notice unless it was huge amounts of cash paid in at unusual frequencies.

[RockHard]

Square Account: The beauty is always in the FINE PRINT.

 

If it sounds to good to be true, it usually is.

 

4. Verification and Inspection.

 

If your request to open a Square Account is approved, Square may request additional information from you at any time. Square may ask you to present invoices from your suppliers, a government issued identification such as a passport or driver’s license, or a business license. Square may also ask for permission to inspect your business location. If you refuse any of these requests, your Square Account may be terminated. We reserve the right to suspend or terminate the Square Account of any user who provides inaccurate, untrue, or incomplete information, or fails to comply with the account registration requirements.

 

6. Your Square Account.

 

By creating a Square Account, you also confirm that you will not accept payments in connection with the following businesses or business activities: (1) any illegal activity, (2) buyers or membership clubs, (3) credit counseling or repair agencies, (4) credit protection or identity theft protection services, (5) direct marketing or subscription offers or services, (6) infomercial sales, (7) internet/mail order/telephone order pharmacies or pharmacy referral services (where fulfillment of medication is performed with an internet or telephone consultation, absent a physical visit with a physician including re-importation of pharmaceuticals from foreign countries), (8) multi-level marketing businesses, (9) inbound or outbound telemarketers, (10) prepaid phone cards or phone services, (11) rebate based businesses, (12) up-sell merchants, (13) bill payment services, (14) betting, including lottery tickets, casino gaming chips, off-track betting, and wagers at races, (15) financial institutions offering manual or automated cash disbursements, (16) financial institutions offering merchandise and services, (17) sales of money-orders or foreign currency by non-financial institutions, (18) wire transfer money orders, (19) high-risk merchants, including telemarketing merchants, (20) service station merchants, (21) automated fuel dispensers, (22) adult entertainment oriented products or services (in any medium, e.g., internet, telephone or printed material), (23) internet/mail order/telephone order firearm or weapon sales, (24) internet/mail order/telephone order cigarette or tobacco sales, (25) drug paraphernalia, (26) occult materials, (27) hate products, (28) escort services, and (29) bankruptcy attorneys.

[SteveEscort]

Yes the worse they can do is terminate it. Big Deal

 

Paypal terminate accounts all the time. It doesn't stop escorts using them

[KMEM]

Maybe so but as a client I won't use Paypal. Cash or if we know it each well enough, a check.

 

Best regards,

KMEM

[nate_sf]

I have Square but so far have had very little demand for it. I keep the reader in my bag in case someone wants to use it but nearly everyone uses cash.

 

From the client perspective, he could swipe the card himself if he is concerned about handing it to the escort. At least with Square, the full credit card number is not recorded with the transaction, so the service provider (escort) will not have the potential to use the number for anything else.

 

The tax issue is worth thinking strategically about. Having had an LLC for an unrelated business myself (wrong decision in retrospect, for the reasons RockHard mentions), and having also gone through an audit with the IRS for two years of taxes, it's easy for the wrong decisions to become a big pain down the road. Having said that, I survived the audit but it was a big undertaking and they do indeed look closely at your records.