Reduce credit card processing fees by Paypal Here

By Tony Lam

  • SumoMe

I spent past weeks in collecting and managing the records for IRS tax return. I looked through all my credit cards /check accounts /Paypal transactions and the cash receipts, just to make sure I don’t’ miss any business expense items. The most time consuming job is to manage the cash receipts . I am not sure if I had kept every cash receipts. Without the receipts, I can’t report them as my business expense since they are the only records I had.

Health insurance premium charged twice

Also, I discovered a duplicate charge from Kaiser for the health insurance premium in the visa card statement in July last year. I called in visa card company and requested a chargeback but only to find that it was too late, as chargeback can only be done within couple of months. My only way is to get hold of Kaiser to request a refund for the duplicate charge. Kaiser’s customer service rep opened a case to credit my premium but it will take around 6 to 8 weeks to process. I recorded down the case number for future follow up reference.

Paypal credit card reader

Credit card processing fee hikes

I know that credit card processing fees are high but have no idea how high it is. This year, I did a calculation on the total processing fees over all the payment I received. The average credit card processing rate is 5.2% !!! The fees include normal card rate, statement fee, mobile line charge, and two monthly nonPCI charges (because I didn’t fill out self-declared PCI conformance survey) and one PCI yearly charge.

If you encounter similar experience as me, you may consider the following steps that I took to improve my situation and prepare for next year IRS tax return.

1) Get a free Paypal credit card reader

Get a Paypal Here card reader to process credit cards payment. It charges fixed rate of 2.7% without hidden charges. You may use the Paypal card reader to accept payment in parallel with current credit cards machine to make sure okay before cancelling the credit card merchant account.

2) No cash transaction for expense

It is really hard to keep records of all the cash receipts. Therefore, pay all the business expense by credit cards/checks/Paypal, and avoid to have business meals in those restaurants that accept cash only.

3) Check all expense every month & consolidate with Outright

Keep track of expense items and check every month for the bank statements/ credit cards transactions and clarify very questionable transaction. You may consider to open,a free Outright account like me, to consolidate and monitor all the income and expense.


P.S. (7/30/13 update) I am very happy with the The Paypal Here, it is easy to use and saves me a lot of money. My credit card merchant account was cancelled last week.

Category: Online Business

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