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Kissed My Credir Card Machine Goodbye

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  • Kissed My Credir Card Machine Goodbye

    Because it is costing too much money and now I have been informed the new PCI compliant machine is nearly $500.00.. My husband does my books and has been nagging me to do this for years.. My clients are having no problem and most say they couldn't believe I took credit to start with in fact most are telling me their hairdresser/barbers and other small industry business take only checks or cash! I must say it has been a freeing experience and a lot less headache.

  • #2
    Good for you.

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    • #3
      Originally posted by Countrygrl View Post
      Because it is costing too much money and now I have been informed the new PCI compliant machine is nearly $500.00.. My husband does my books and has been nagging me to do this for years.. My clients are having no problem and most say they couldn't believe I took credit to start with in fact most are telling me their hairdresser/barbers and other small industry business take only checks or cash! I must say it has been a freeing experience and a lot less headache.
      Be careful. The IRS frowns on cash and check only businesses and it can and will set you up for an audit. PCI compliance is mostly done at the company level (I pay a fee for that)....
      <a href="http://www.groomwise.typepad.com/grooming_smarter" target="_blank">My Blog</a> The two most important days in your life are the day you are born and the day you find out why. –Mark Twain

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      • #4
        I think one person businesses can handle that fine, but medium and larger shops can spread the cost (lease the machine) and get by fine. Over 85% of my clients use debit cards (or credit but mostly debit) now. My hairstylist works in a salon and she said before that 3/4 of the clientele use debit/credit, here on West Coast at least.

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        • #5
          We have a business paypal at my small shop and registers at my large shop.

          I'm with Parti, audits can and will happen with cash/check only operations. If you're opting for that option my advice is to keep very diligent receipts and keep 'em organized. That might help with the audit headache.

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          • #6
            I've been mobile since 2008 and only take cash and checks, and I've never been audited. I have copies of receipts for every transaction plus an appointment book to back up all of my charges. So don't let the IRS scare you off. Document all of your charges and deposits.


            Happy saving $$

            Dolly's Barking Bubbles, LLC

            www.dollysbarkingbubbles.com

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            • #7
              Thanks for all the advice.

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              • #8
                How would the IRS know that a small business was cash and check only? They would have to already be checking out the business in order to find out that the business was cash and check only, right -- so the audit wouldn't have been sparked by the cash & check aspect?

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                • #9
                  Paypal and credit card processors file 1099 info returns on your activity against your ss number or ein. So if are filing as a business income and no one like Paypal or visa etc is filing on your number, you must be cash and check only. Best guess.

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                  • #10
                    Originally posted by 10muddypaws View Post
                    Paypal and credit card processors file 1099 info returns on your activity against your ss number or ein. So if are filing as a business income and no one like Paypal or visa etc is filing on your number, you must be cash and check only. Best guess.
                    Yes. And when you all of a sudden stop cc transactions a red flag will go up.
                    <a href="http://www.groomwise.typepad.com/grooming_smarter" target="_blank">My Blog</a> The two most important days in your life are the day you are born and the day you find out why. –Mark Twain

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                    • #11
                      Interesting! That's good to know.

                      Originally posted by Particentral View Post
                      Yes. And when you all of a sudden stop cc transactions a red flag will go up.

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                      • #12
                        If you are depositing the same amount of money and earn the same income why would they care how you got it? I will be contacting my CPA for advice, but I think it is sad to have to be so afraid of our own govt that we can't run our business as we see fit. Again thanks for all the advice it is appreciated.

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                        • #13
                          Originally posted by Countrygrl View Post
                          If you are depositing the same amount of money and earn the same income why would they care how you got it? I will be contacting my CPA for advice, but I think it is sad to have to be so afraid of our own govt that we can't run our business as we see fit. Again thanks for all the advice it is appreciated.
                          I am not saying be afraid, because if your books are good you will be fine. but. IT can and does happen
                          <a href="http://www.groomwise.typepad.com/grooming_smarter" target="_blank">My Blog</a> The two most important days in your life are the day you are born and the day you find out why. –Mark Twain

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                          • #14
                            I think the flags go off depending upon your income. If a business saying income is $10K or $20 or $30K a year that's one thing. But when you go over that amount and have no machine use I think the odds that that is odd go up fast.

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                            • #15
                              I still like being convenient for my customers. I have many that have stopped cash, and I don't really care for checks.

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