Accepting $

Small Biz Book – Post #9

I have a habit of publicly making blatant comments with certainty and then at some point in the future having to eat my words. For example, in Life Lessons from an App, I said, about dating an ex, quote, “I have learned with absolution that this never works for me, by the way. I feel like I’m cheating on myself.” I was in my feelings when I wrote that. With ABSOLUTION. And yet, here I am, 2.5 years into chomping on that statement and floating along pretty happily. I guess I forgave myself.

In my Small Business Book – Blog Style introduction, I said, and again I quote, “I have never felt the urge to run one (a business).” And yet, here I am, half a year into funding my existence from running my own company. And, floating along pretty happily.

And, the last point on calling myself out: After stripping, sanding & painting my own kitchen cabinets, I described the experience as a…“lap through hell to finish a project that I will never attempt again. Like, ever.” I’ve since built a service business around the practice.

I’ve learned a few lessons during the last 6 months, one being that when you are busy running a business there is little time and energy left to write about it. So, I’m happy to finally offer another post towards my Small Business Book – Blog Style. The thoughts for this topic began formulating when I experienced a less-than-ideal situation, so writing about it makes my soul feel like it at least it served a purpose.

I imagine we can agree that the act of getting paid is a chief concern of small business owners. Technology has obviously made this much easier than before, minus the act of bartering, which I find to be one of the most pure exchanges between people. (Hey other human, I’m good at this and you are good at that, so let’s work out a deal.) I have encountered the following forms of payment:

If I progress correctly, this list will grow, and I can revisit my post. For now, I will describe my experiences with these.

Although Covid tried its best to change the fact that Cash is King (& Queen), it didn’t succeed yet. Despite the germs that may be on bills, nothing trumps the power and privacy of cold hard dolla dolla bills y’all. However, as a customer at a nail salon, I’ve been asked to pay in cash. I quantify this request as ‘shady shit’ to be exact. My motto is to appreciate the money that comes my way and to make it as simple as possible for a person to put money in my hands. Cash is not the most effortless way for me to pay, so I must assume the same for my customers. In other words, I don’t request it, but I appreciate it.

Checks, although a little more old fashioned, have still proved to be very reliable. I’m not ashamed to admit that there was a time in my life that the lag time between me writing a check to pay for groceries & it hitting the bank helped me feed my children. Therefore, I can’t hate on checks. One of my past jobs (of many – click here for the list) at a bank taught me that confirming if funds are available to cash a check is as easy as a phone call. My bank allows me to deposit a check remotely, with a simple picture of the front and the back. Sometimes a small hold is placed on a portion of the funds, but never more than a day or two. For a business built around services, a layer of protection that can be exercised for checks is to require a down payment, as well as payments at various stages of a project. If a check bounces, work can cease until funds are secured.

I have not leveled up to swiping cards yet (i.e. The Square) because I find the fees unfavorable. The last time I checked, there was a near 3% charge on every transaction (2.60% + 10 cents), a monthly fee on the card reader, and $169 for the lovely stand that makes it more user-friendly. I absolutely understand the use of these for companies that sell products. Furthermore, I think digital receipts with the return policy outlined that are texted to a customer are pure genius. I simply haven’t found a need for this product yet. On a similar note, I’ve implemented QuickBooks when I worked for a small business. The fee charged was completely worth it based on how convenient the app makes sending quotes & invoices & tracking expenses. As my company grows, I will definitely consider using it again.

I’ve heard it said that it takes money to make money and I’ve found this to be true nearly 100% of the time. However, with the apps Zelle & Venmo, I haven’t found any fees that are charged 100% of the time. If money is needed in my account immediately, there is a choice to pay a small fee (a few dollars) to make that happen. If time isn’t of the essence, there is no fee for a 1-3 day wait.

Cash App is nearly right up there with the above 2 apps, but I’m apparently too dumb to slow down and find the no-fee button, even when I deliberately try. On Cash App, the default button (and obviously the only one I can find) is to pay a fee to get the money immediately. It’s never been a lot of money, but it’s my money, and I would like to feel I’m in charge of giving some of it away. So, I’m not against this app, but I would warn any receiver to take a deep breath and slow down when utilizing it.

Apple Pay is very convenient, but I’ve found two caveats with it. Money is first deposited into an Apple account instead of a bank account. If the money is needed in the bank instantly, there is a fee and time spent transferring it essentially a second time. Additionally, when there is a lagging internet connection, that the app doesn’t always cooperate. I have frequently paid my hair stylist in the salon with Apple Pay and it doesn’t get to her until after my phone is halfway home.

I’m assuming all of these companies make their money off of the information from my transactions (click here to read my blog about Apple being the devil) but they don’t take my money before I can even get my hands on it, so I appreciate them.

Finally, the app behind the inspiration for this post: mutha f*ckin’ PayPal. I despise giving them their own paragraphs but disappointingly the squeaky wheel often does get the attention. I’m guessing PayPal makes interest on money before they finally give it to its rightful owners. I’m certain individuals who pay others through PayPal are not cognizant of the havoc on the other end of their transaction.

I’ve had a PayPal account for approximately 10 years. (I recently emailed PayPal asking when I first acquired my account, but they have not replied). I opened the account because someone wanted paid through PayPal. I’ve only used it a few times since, always at a vendor’s request. Recently one of my customers with a compromised bank account needed to compensate me through PayPal while their bank sorted out a mess. I had to begin the process by updating my last name and address and card on file. With each change, I had to verify my identity with a code (total of 3 times). Annoying, but I appreciate safety, so I’ll allow it. About an hour into this technological fun, I was able to request money for the service of painting.

After this, I read that I should have my money in about 3 weeks. What the?! This forced me to spend a little more time with the app (after a long day of climbing up & down a ladder, by the way). I read that when payment is for a service (different from a delivered product which would involve a tracking number), I needed to note in the app that the payment was for a service. I could see that my customer paid the next morning; I read I would receive my money in a week. Not awesome, but I could live with it. In 7 days, I woke up and checked my account. Still no money.

Looking further into PayPal’s literature, it said a 3 week wait might happen if the account was new. I tried contacting customer service first thing in the morning, but had a 3 hour wait since they are a West coast company. I was told all of this was a glitch with no explanation, because my account was not new and the customer had already approved payment. They emailed my customer asking if the payment was actually valid. This led to my customer contacting me a day or so later inquiring if the email they received from PayPal was fraud. Nearly 2 weeks after my customer paid me, I was able to accept payment, with PayPal keeping nearly $20. (Additional fees were added because PayPal does not connect with Zelle, the app that is in more than 1,000 banking apps.) Interestingly, I’ve created two e-commerce websites and have found PayPal to be the most simple to set up to receive payment online. My website clients have not reported any issues, but I don’t think exploring other avenues would be a waste of time.

I have found my peace in this debacle because it provided content for writing, which is much more my passion than figuring out the best way to accept money. To bring this post full circle, I will admit to not doing what I said in my first Small Business post written 3 years ago (Delegate, Dammit!). So, I know I still have much to learn and look forward with sharing it when I do. I would love to save you from a debacle.

In summary, Small Biz What Not to Do #9: Don’t make it difficult for customers to pay you, don’t dictate how customers pay you, and don’t lose money in the process of getting paid.