question on credit cards! - not sure where to post this

[Guest Miss.Scarlet]

Hey Guys - i have become over run in the last few months with the question of taking credit cards.

ive been combing through and it looks like a few well known providers do indeed take CC's.

does anyone have any helpful hints on making sure uncle sam gets his cut? im thinking of something like the Square card reader.

thanks for your help - PMs are always best!

xoxo

scarlet o

[Guest Quazar]

Square is good, i would use that.

[Porto]

Yes, claim it as income on your 1040. They aren't so worried where it came from but more about them getting their cut. IMHO, stick to cash.

[stevie]

Lol if you really do pay taxes? But if you do then you would know that you are self employed and would need to be registered with the state, therefore you can have a creditcard machine to except them, they don't give anybody access to have a machine for any old reason, then when you file your taxes you claim your cards as income, pretty simple

[pussaylicker]

your CC provider will send you and the IRS a 1099 at the end of the year. plus depending on your cc provider you'll pay so much per transaction plus a percentage of the sale, they pull the funds right out of your bank account, fee's can be high, so you might want to rethink accepting CC

[frankenthaler91]

Steve, though I'm not from CO, I don't think the State has any control over who has a CC machine. And making sure the Sate/Feds get their cut, that is up to you to keep records to pay any sales/income tax like any other business does.

I wouldn't use a CC because of the paper trail.

If I was a provider, I wouldn't use one because of the charge back issues.

[Audrey Astor]

Lol if you really do pay taxes? But if you do then you would know that you are self employed and would need to be registered with the state, therefore you can have a creditcard machine to except them, they don't give anybody access to have a machine for any old reason, then when you file your taxes you claim your cards as income, pretty simple

This statement is not true Ms. Scarlett. LOL Yes, anyone can get a squared machine. Whether you are a registered business with the state as a business or not. Even Ms. Scarlett, Stevie! Credit cards have been discussed and have their pros and cons. I'm sure you have done your initial research, and know about the percentage that is charged to you. If you decide to do this, I'm sure there are reports etc. that you can generate for bookkeeping purposes. Then at the end of each quarter (or however you pay your taxes), your credit card info would go to your accountant. Good luck whichever way you choose to go love.

[MAG]

Good gawd, no. Stick to cash.

Credit cards open up ALL KINDS of problems. Per-transaction fees are only the beginning. There's the paper trail to be concerned about. Also, any john can dispute a charge, which means you'll be stuck for the original transaction PLUS the per-transaction fee PLUS a $25.00 dispute charge. To have any chance at successfully defending a dispute, you have to be able to prove that services were rendered or product shipped. How are you going to prove that you provided "time & companionship only"?

Many guys prefer to remain discreet. The rest can simply go to an ATM with said credit card & get cash, THEN come to see you -- it's that easy. So easy, in fact that it sends up a red flag that they would ask you to take a CC. I suspect some of them are well-versed in the process of disputing charges.

[mrvegas63]

Don't forget, that Square and the ilk, per their agreement terms, do not allow illegal and or "adult entertainment" natured businesses, ala PayPal. So, can go through the hoops of getting setup, to only have it all shut-down, should they get wind of what's going on.

Now, from the amount of strip clubs and other "adult entertainment" businesses taking cards, guessing there are credit card processors out there willing to do business, just guessing their transaction fees might be higher.

[louisville42]

Lol if you really do pay taxes? But if you do then you would know that you are self employed and would need to be registered with the state, therefore you can have a creditcard machine to except them, they don't give anybody access to have a machine for any old reason, then when you file your taxes you claim your cards as income, pretty simple

Bullshit, bullshit, and bullshit.

The state of CO in no way requires registration for self-employed persons. (The only registration that comes close is for d/b/a business names for 1-person operations that want to use a "company" name without incorporating.)

You can get a credit card reader from Square for your smart phone with nothing but validation of your checking account. Actually, you can sign up on their service and be running your first charges within a few minutes by entering card numbers manually instead of waiting for the reader to arrive in the mail.

[ColetteReynolds]

You're opening yourself up to many problems if you decide to take credit cards. Square and pay pal have had enough 'working girls' use their products to where they've addressed the problem by not allowing adult service providers of any kind. If a client disputes the charge, you're going to be upset enough to never take cards again. Don't risk your safety or your freedom in this hobby.

[Guest ezduzit]

CCs leave audit trails which you and your clients may or may not care about.