How To Sell On Instagram With Shoppable Posts

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Top Metal Credit Cards For 2019

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How To Start A Pet Sitting Business: The Complete Guide

Have you always had an affinity for furry (or scaly) things? Have you ever needed money? If you answered yes to both these questions, you may want to consider starting a pet-sitting business.

But before you pick up the leashes and pooper-scoopers, it’s a good idea to sit down and plan out the trajectory of your business. If that sounds overwhelming, don’t fret. Below, we’ll lay out the steps you can take to start a pet-sitting business.

Decide On A Location

Since you’re going to be dealing with people’s pets, you’ll need to take into account your proximity to your clients. If they’re dropping their pets off with you, you’ll want to be located somewhere easily accessible to most of your customers, and one that can accommodate animals. Depending on where you live, this can be tricky as the space necessary to accommodate animals will usually be cheaper in less centralized locations.

On the other hand, if you’re going to your customers, you’ll need to take into account the amount of time you need to spend with each client’s pets, the costs of commuting to the job, and how animal-friendly/animal-hostile the infrastructure in your service area is (dog parks, etc.).

Register Your Business

Why should you register your business? Depending on your local laws, you may actually be required to register your business in order to legally pet-sit. But even in jurisdictions where it isn’t compulsory, there are some advantages to doing so.

The first is that you can do business under a name other than your own. So instead of Martha Swearingen, LLC, you can do business as Baron Bark’s Pet Pampering Service (you can have that one for free).

The default configuration for businesses is a sole proprietorship (or a partnership, if you’re starting it with someone else). This essentially means that you’ve started a business with your own name or, if you file a DBA (Doing Business As), a name of your choice.

Sole proprietorships have the advantage of being cheap and easy to start. Your taxes will also be easier to file (and lower) than they would generally be with other forms of incorporation. Keep in mind, however, that for liability purposes, sole proprietorships and the individuals behind them are essentially one and the same.

Other forms of incorporation will require a bit more work and come with their own advantages and disadvantages. Most pet-sitting companies aren’t going to be interested in forming C-suites for governance, so you can probably ignore S-Corps and C-Corps for now. You may, however, want to consider forming an LLC to provide some separation between your personal finances and liabilities and your business ones.

Here are the most popular ways to incorporate:

  • Limited Liability Corporations (LLCs): If you’ve seen LLC after a corporation’s name, you’re dealing with this type of company. LLCs offer limited liability protection for their owners without the full complexity of a corporation. Each state has its own rules for how to start and maintain an LLC, and you don’t necessarily have to register your LLC in the state where you’re doing business (although you’ll generally want to). LLC owners report their business earnings and losses on their personal taxes.
  • C-Corp: This is the “basic,” default form of incorporation. Shareholders are considered the owner(s) of the company and receive limited liability protection; however, the business decisions are made by corporate officers who may or may not be shareholders. The corporation is taxed separately and shareholders pay income tax on dividends. To form a C-corp, you’ll file articles of incorporation with your state.
  • S-Corp: S-corps are similar to C-corps in most ways, but come with a few additional restrictions: you have to have fewer than 100 shareholders and they have to all be U.S. citizens or residents. Unlike C-corps, profits and losses are reported on personal taxes, not unlike an LLC. In addition to filing articles of incorporation, you’ll also need to file IRS Form 2553.

Get Business Insurance

As a pet-sitter, you’re not just dealing with property, you’re dealing with animals whose owners often view them as part of their family. In other words, if something goes wrong, things could get ugly.

Depending on your local laws, you may be required to carry certain types of insurance.

The type of insurance that will probably be of most interest to you is general liability insurance. This protects you in the event of a lawsuit or accident, whether it’s an accidental injury to the animal or if you accidentally damage property within a client’s home. It doesn’t only protect you, however; it also makes you look like a safer option than a business that isn’t covered.

There are other, more specialized types of insurance that are worth taking a look at depending on the specifics of your business. These include:

  • Property Insurance: Protects the property needed to run your business (as opposed to damages you cause to clients’ property).
  • Business Interruption: Covers costs related to unforeseen events that make your business unable to function.
  • Professional Liability (Error and Omissions): Covers the costs of defending your company in lawsuits in cases where your business caused a financial loss.

If you aren’t sure where to look, we can help you.

Invest In Business Software

While not absolutely necessary, you can save yourself and your customers some hassle with strategically chosen business software. For pet sitting, there are probably three types most worthy of consideration.

Payment Processing

Doing business with cash can be convenient when you’re first starting out, but as you grow, you’ll probably be missing out on clients if you can’t accommodate other forms of payment.

Recommended Option: Square

Best Overall Mobile POS


Review Visit Site

Highlights

  • No contract or monthly fee
  • Instant account setup
  • Retail upgrade available
  • Restaurant upgrade available
  • For iOS and Android mobile devices
  • 2.75% per in-person card swipe

Retail POS: Free trial ($60/mo value)

 

Restaurant POS: Free trial ($60/mo value)

 

Square POS: Always free

If you have an iOS or Android device, Square offers an extremely convenient way to accept mobile payments while on the go via a small add-on you plug into your device. It’s also a very scalable service; if you’re running a retail location, there are even more features and service options you can take advantage of.

Best of all, there aren’t any monthly fees to worry about. Square charges between 2.75  – 3.5 percent per transaction (depending on whether you swipe or key in the info), so you’ll want to factor those costs into your expenses.

Scheduling Software

As you add clients, it will get harder to remember their particular preferences, not to mention more difficult to fit them all into your schedule. With booking or scheduling software, you can track your time, note customer needs, and efficiently plan your days’ work. Many of these offer their basic features free of charge.

Accounting Software

Most businesses can benefit from accounting software. What you don’t want is to spend money unnecessarily on one. Wave offers most of the features you need at no cost.

With no monthly fee, you’ll get invoicing, estimates, contact management, expense tracking, accounts payable, and inventory tracking.

Seek Funding

Pet-sitting, especially, if you’re going to your clients, doesn’t have a lot of overhead when you’re first starting out. In the event that you do need to scare up some money to cover starting expenses or equipment, there are a number of options available to you.

Personal Savings

If you can avoid taking on debt, it’s usually a good idea. It may hurt to part with some of your rainy day funds, but you won’t be accumulating expensive interest and fees.

Tap Your Support Network

If you do need money from an outside source, you can often get a better deal from your support system than you can from a private lender.

Keep in mind that this comes with its own risks. You may stress your relationships, especially if you aren’t able to pay back these so-called friendly loans quickly. One way to avoid this is to formalize any agreements you make with friends and family so that everyone fully understands what they’re getting into and what the expectations are. You may even want to draw up a formal contract that outlines any expected payments and return on investment.

Credit Cards

For the relatively low expenses you will encounter when you start a pet-sitting business, credit cards can probably suffice for most of your needs.

The general rules of thumb when it comes to using credit cards effectively are these:

  1. Use credit cards for expenses that you can pay off within their interest-free grace period.
  2. Pick a card with a reward program that matches your spending habits and needs.
  3. Do not take out cash advances on your credit card.

If you follow these rules, you can actually save money by using your credit card to make purchases.

Recommended Option: American Express SimplyCash Plus

SimplyCash Plus Business Credit Card from American Express



Compare

Annual Fee:


$0

 

Purchase APR:


14.49% – 21.49%, Variable

Amex’s SimplyCash Plus offers one of the best cash back programs available without an annual fee. You’ll get 1 percent back on generic purchases, 5 percent back on wireless telephone purchases and office supply stores in the U.S. But it’s the middle tier that’s most interesting. You can select a category of your choosing (airfare, hotel rooms, car rentals, gas stations, restaurants, advertising, shipping, or computer hardware) to get 3 percent back.

It also carries an introductory 0% APR for the first nine months, which can be helpful if you’re just starting out.

Recommended Option: Amazon Business Prime American Express Card

Amazon Business Prime American Express Card


Compare

Annual Fee:


$0

 

Purchase APR:


16.24% – 24.24%, Variable

This one’s a little more niche. But if you find yourself buying supplies and random pet-related doodads on Amazon frequently, you can get a lot of value out of the Amazon Business Prime American Express Card.

If you have a Prime membership, you’ll earn a whopping 5 percent back on purchases made at Amazon.com, Amazon Business, AWS, and Whole Foods Market — or an extra 90 days interest-free grace period for purchases made at those places. Even if you’re not a Prime member, you’ll get 3 percent or 60 days, respectively. You’ll need to spend around $6,000 to recoup the cost of a $119 Prime membership with points alone, but that’s without factoring in money saved through Prime’s programs (shipping, deals, etc).

Personal Loans

If you need more money than you can safely put on a credit card, or need longer to pay it off, you should consider getting a personal loan that can cover business expenses.

There are some disadvantages to taking this route, namely that you’re on the hook rather than your business, but if your credit is good, it’s not the worst option out there.

Recommended Option: Lending Club Personal Loans

lending club logo

Review

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Lending Club is a good option for individuals who may not have the strongest credit, but have a good debt-to-income ratio. The borrowing range is fairly narrow at $1k to $40k, but when you’re just starting out, you don’t want to go too deeply into debt anyway. You’ll have three-to-five years to pay it off, which makes it fairly manageable.

Recommended Option: Lendio

Review

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If you’re just entering the alternative loan market for the first time, it can be pretty overwhelming. Lendio takes some of that burden off of you by allowing you to effectively apply to their whole network of lenders with one application.

Need more options? Check out our feature on startup loans.

Create Contracts

If you’ve just been watching your friends’ pets, you’ve probably had an informal agreement about the services you’d provide and the expectations of safety and liability involved. And that was probably enough.

When you’re dealing with strangers in a professional capacity, however, it’s smart to formalize these elements in a contract. This can save you a lot of headaches, if not legal troubles, down the road. You’ll want to include critical information about the pet (when and what they eat, how they are with strangers, pertinent medical history, etc.), what’s included in your services, and the client’s expectations for how their home will be treated under your care (if applicable). You’ll also want to include your fees and rates.

If you can, have a lawyer look it over to make sure it checks out legally.

Market Your Business

Getting the word out is always one of the most challenging parts of getting a business off the ground. The easiest place to start is through word of mouth. Are you already looking after the pets of a family or two? Let them know you’re looking to take on more clients, along with your friends, family, and social contacts.

At some point, you’ll probably want to expand outside the reach of your current contacts, which means advertising. It doesn’t have to be fancy. You can post flyers on bulletin boards and leave business cards in places trafficked by pet owners. Online classified sites like Craigslist can also cover a large audience in your area.

Bolster Your Web Presence

When it comes to promoting small business, the internet is one of those things that’s easy to both over- and underestimate. On the one hand, simply buying an ad and hoping for the best likely won’t yield amazing results. On the other, you do need an internet strategy to grow your business.

It doesn’t have to be fancy, but you’ll probably want a website that details your basic services and contact information. Don’t overthink it. There are a lot of great tools available that can help you build a website.

Remember, too, that social media isn’t just for sharing pictures of your dinner with your friends. You can use to communicate with customers, make engaging content that makes them keep your brand in mind, and announce special deals and service changes.

Final Thoughts

Hopefully, everything we covered doesn’t look too intimidating. If you’re good with animals and don’t mind turning that love into a source of revenue, you can get a pet-sitting business up and running in no time!

Having second thoughts about pet-sitting but are still looking to open a business? Check out our other beginners’ guides.

The post How To Start A Pet Sitting Business: The Complete Guide appeared first on Merchant Maverick.

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Top Credit Cards With No Foreign Transaction Fees

best credit cards with no foreign transaction fees

Your credit card might come with some nice rewards for your spending. It might even offer some nice travel benefits. But if it carries a foreign transaction fee, that means that every charge you make while outside the US is subject to an extra fee, usually 3%. Think of it this way: for every $100 in overseas charges you make, you’ll be spending another $3 in fees.

Spend enough on purchases outside the country, and foreign transaction fees will eat into whatever net benefit your card use would have otherwise brought you. Thankfully, the solution is clear. If you’re going to be using your credit card outside the US with any frequency, use a credit card with no foreign transaction fees.

Most credit card companies offer both cards that carry a foreign transaction fee and cards that don’t. However, there are two prominent exceptions to this general rule: Capital One and Discover. Neither credit card issuer charges a foreign transaction fee on any of their cards, making their credit card lineups particularly appealing to the traveler who spends a significant amount of time and money outside the US.

Let’s survey the landscape and highlight the best credit cards with no foreign transaction fees.

Credit Card Best For
Capital One Quicksilver Cash Rewards Cash Back with No Annual Fee
Chase Ink Business Preferred Business
Capital One QuicksilverOne Cash Rewards Average Credit
Barclays Arrival Plus World Elite Mastercard Travel Rewards
Chase Sapphire Preferred Transferable Travel Rewards
The Platinum Card from American Express Luxury Travel Benefits
Uber Visa Restaurants/Dining
Discover it Cash Back Rotating 5% Cash Back Categories

Best For Cash Back With No Annual Fee: Capital One Quicksilver Cash Rewards

Quicksilver from Capital One



Compare

Annual Fee:


$0

 

Purchase APR:


16.24 – 26.24%, Variable

The Capital One Quicksilver Cash Rewards card is a great cash back credit card for the international traveler who can’t be bothered with category restrictions on earning cash back and just wants to earn cash back at a flat rate — all without paying an annual fee.

The highlight of this card is undoubtedly the unlimited 1.5% cash back you’ll earn on every purchase, everywhere. You won’t have to worry about spending categories and there is no limit on the amount of cash back you can earn. You won’t have to weigh the benefits you’ll accrue against foreign transaction fees or an annual fee either, as there are no such fees.

Another great feature of the Capital One Quicksilver Cash Rewards card is the 15-month 0% intro APR on purchases and balance transfers. Most credit cards offer an introductory 0% APR for a year or less (if they offer one at all), so with the Quicksilver card, you’ll get an extra buffer period before you’ll have to start thinking about monthly interest charges.

Best For Business: Chase Ink Business Preferred

Chase Ink Business Preferred



Compare 

Annual Fee:


$95

 

Purchase APR:


18.24% – 23.24%, Variable

Chase Ink Business Preferred is a business credit card that confers some nice travel benefits. One of these benefits, of course, is the lack of a foreign transaction fee.

Ink Business Preferred offers an eye-catching bonus offer: 80,000 bonus points after you spend $5,000 on purchases in the first 3 months. When redeemed for travel, that’s a $1,000 reward. That’s because points are worth 25% more when you redeem them for travel through Chase Ultimate Rewards.

On the subject or points-earning, you’ll earn 3 points per $1 on your first $150,000 spent in combined purchases on travel, shipping purchases, Internet, cable/phone services, and on social media/search engine advertising each year. You’ll earn 1 point per dollar spent on everything else.

Not only will you get a 25% boost to your points value when booking travel via Chase’s travel portal, but you can transfer your points on a 1:1 basis to the travel rewards programs of partners like United Airlines and Marriott.

The Ink Business Preferred does, however, carry a $95 annual fee.

Best For Average Credit: Capital One QuicksilverOne Cash Rewards

QuicksilverOne from Capital One



Compare

Annual Fee:


$39

Purchase APR:


26.99%, Variable

Not to be confused with Capital One’s other Quicksilver card, the QuicksilverOne Cash Rewards credit card is one of the few credit cards out there that both lacks a foreign transaction fee and is available to applicants with average credit.

The Capital One QuicksilverOne Cash Rewards card offers the same unlimited 1.5% cash back as the Quicksilver Cash Rewards card. Not bad for a card available to people with average credit!

Of course, there are some trade-offs to be made here. Unlike Capital One’s other Quicksilver card, this card offers no introductory 0% APR, an annual fee of $39, and a high variable APR that currently stands at 26.99%. The high APR combined with the lack of an intro 0% APR period means that you’ll want to avoid carrying a significant balance on this card from month-to-month. You’ll also need to spend at least $2,600 a year in order to earn enough cash back to make up for the annual fee.

Best For Travel Rewards: Barclays Arrival Plus World Elite Mastercard

Barclays Arrival Plus World Elite Mastercard


Barclays Arrival Plus World Elite Mastercard
Compare

Annual Fee:


$89 (waived the first year)

 

Purchase APR:


18.24% – 25.24%, Variable

The Barclays Arrival Plus World Elite Mastercard makes some tantalizing offers to the frequent traveler. Along with no foreign transaction fees, this card offers three big perks for the international traveler.

  • Earn 70,000 bonus miles when you spend at least $5,000 on purchases in the first 90 days — the equivalent of a $700 travel statement credit
  • Earn unlimited 2X miles on every purchase
  • Get 5% of your miles back to use toward your next redemption each time you redeem them

The 2X miles you’ll earn with every purchase is one of the highest flat earning rates of any travel credit card. And since you’ll get 5% of your miles back whenever you redeem them, the cash back rate is effectively 2.1%.

What’s more, your miles can be redeemed for a lot more than just airfare. You can redeem them for hotel stays, car rentals, trains, buses, taxis, and more. You can even use your miles to pay the $89 annual fee (the fee is waived the first year), though hopefully, you can find something more exciting to use them on!

Another nice card feature: If you transfer a balance to this card within 45 days of your account opening, you’ll pay a 0% introductory APR on that balance for 12 months.

Best For Transferable Travel Rewards: Chase Sapphire Preferred

Chase Sapphire Preferred



Compare

Annual Fee:


$95 ($0 the first year)

 

Purchase APR:


18.24% – 25.24%, Variable

The Chase Sapphire Preferred card is another travel rewards card with no foreign transaction fee. With Sapphire Preferred, not only can you redeem your rewards through Chase’s travel portal — you can also transfer your points on a 1:1 basis to the following airline and hotel travel partners:

  • Aer Lingus, AerClub
  • British Airways Executive Club
  • Flying Blue AIR FRANCE KLM
  • Iberia Plus
  • JetBlue TrueBlue
  • Singapore Airlines KrisFlyer
  • Southwest Airlines Rapid Rewards
  • United MileagePlus
  • Virgin Atlantic Flying Club
  • IHG Rewards Club
  • Marriott Rewards
  • The Ritz-Carlton Rewards
  • World of Hyatt

The Chase Sapphire Preferred card features a bonus offer of 50,000 bonus points after you spend $4,000 on purchases in the first 3 months. Thanks to the 25% value bonus you’ll get when redeeming your points for travel via Chase Ultimate Rewards, these 50,000 points can become $625 for travel expenses.

You’ll also earn 2X points on travel and dining at restaurants and 1X points on everything else.

Unfortunately, the card carries a $95 annual fee (waived the first year) and lacks an introductory 0% APR period.

Best For Luxury Travel Benefits: The Platinum Card from American Express

The Platinum Card from American Express


The Platinum Card from American Express
Compare

Annual Fee:


$595

 

Purchase APR:


N/A (charge card)

The Platinum Card from American Express may not have a foreign transaction fee, but it does sport a $550 annual fee. That should tell you who this card is aimed at. It’s not the average traveler looking to earn some points/miles on the side. This card is for the well-heeled traveler seeking the finest in travel perks.

Of all the travel benefits this card offers, the best benefit might just be the 1,200+ airport lounges worldwide you’ll gain access to via the American Express Global Lounge Collection. It’s the largest airport lounge network around. I may not have any personal experience with these exclusive lounges, but I’m sure they’re spectacular.

The card comes with a host of other travel perks befitting a card with such a high annual fee. You’ll earn 5X Membership Rewards points on flights booked directly with airlines or with American Express Travel and on prepaid hotels booked on amextravel.com. You’ll get a fee credit of up to $200 a year to cover checked bags and in-flight food and drinks. You’ll be enrolled in the Fine Hotels & Resorts program, giving you access to travel amenities with an average value of $550/year.

The card currently offers quite the bonus offer: 75,000 Membership Rewards points after you spend $5,000 on purchases on your new card in your first 3 months.

Just keep in mind that the Platinum Card is a charge card, meaning you won’t be able to carry a balance from month to month.

Best For Restaurants/Dining: Uber Visa Card

Uber Visa


Uber Visa
Compare

Annual Fee:


$0

 

Purchase APR:


17.24% – 25.99%, Variable

The Uber Visa card, a joint venture of Uber and Barclays, is a new credit card that offers great value to those who love to go out and live it up without worrying about things like foreign transaction fees or an annual fee.

The card offers an amazing 4% back on restaurants, takeout, and bars (UberEATS included), making the Uber Visa a compelling choice for you nightlife lovers. The card also offers 3% back on airfare and hotel stays, 2% back on all online purchases (yes, including Uber), and 1% back on all other purchases.

That’s not all. There’s a signup bonus of 10,000 points ($100) after you spend $500 on purchases within the first 90 days. There’s a cellphone protection plan that offers up to $600 if your phone is broken or stolen (conditions apply). There’s even a $50 credit toward digital subscriptions you’ll get if you spend at least $5,000 on your card each year.

With a system that rewards going out for food and drinks, online shopping, and offers cellphone protection, this card seems targeted at millennials, or at least the few millennials who aren’t drowning in debt already. One thing that won’t appeal to millennials, however, is the card’s lack of an introductory 0% APR.

Best For Rotating 5% Cash Back Categories: Discover it Cash Back

Discover it Cash Back



Compare

Annual Fee:


$0

 

Purchase APR:


14.24% – 25.24%, Variable

The Discover it Cash Back card allows those who don’t mind tracking rotating spending categories the chance to earn 5% cash back on their purchases.

With the Discover it Cash Back, you’ll earn 5% cash back on up to $1,500 in purchases each quarter on selected spending categories. The 5% categories for 2019 are:

  • January to March: Grocery stores
  • April to June: Gas stations, Uber, and Lyft
  • July to September: Restaurants
  • October to December: Amazon.com

Of course, you’ll earn 1% cash back on all other purchases.

What makes this Discover card an even better cash back value is the fact that Discover will match all the cash back you’ve earned at the end of your first year, thus doubling your first year’s cash back haul.

Beyond that, this card is a simple, reasonable credit card. There’s no annual fee, a competitive regular APR, a 0% intro APR for 14 months on purchases and balance transfers, and you can access your FICO score for free.

One word of caution: Though there is no foreign transaction fee, international acceptance of Discover cards can be hit-or-miss.

Final Thoughts

If you spend a significant amount of time outside the US, an ordinary credit card will have you needlessly paying 3% extra to your credit card company in the form of foreign transaction fees.

Don’t be a sucker. When spending money abroad, use a credit card that doesn’t charge a foreign transaction fee. Thankfully, the number of such cards has been expanding in recent years and you now have a wide range of choices!

Not sure which cards you’ll qualify for? Check out these helpful resources!

  • Best free credit score sites
  • Ways to improve your credit score
  • Using personal credit cards for business

The post Top Credit Cards With No Foreign Transaction Fees appeared first on Merchant Maverick.

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Gas Credit Cards: Top Business And Personal Cards For Gas

best gas credit cards

If your business has you driving to and fro with any frequency — or if you simply do a lot of driving — you might want a credit card with a rewards system geared towards saving you money on gas purchases. Thankfully for you, many credit card issuers offer gas credit cards designed to get you earning points or cash back for the gas purchases you have to make anyway.

Let’s examine both the business cards and the personal cards that give you the best rewards for your gas purchases.

Credit Card Card Type Gas Rewards
BofA Business Advantage Cash Rewards MasterCard Business 3% cash back
US Bank Business Cash Rewards World Elite MasterCard Business 3% cash back
SimplyCash Plus Business Credit Card from Amex Business 3% cash back
Chase Ink Business Cash Business 2% cash back
Citi Premier Card Personal 3X points
Blue Cash Preferred Card from Amex Personal 3% cash back
Hilton Honors American Express Card Personal 5X Hilton Honors points
Sam’s Club MasterCard Personal 5% cash back

Best Gas Rewards For Business Credit Cards

Bank Of America Business Advantage Cash Rewards MasterCard

Bank of America Business Advantage Cash Rewards Mastercard


bofa business advantage cash rewards
Compare

Annual Fee:


$0

 

Purchase APR:


13.49% to 23.49%, Variable

There’s a lot for business owners to like about the Bank Of America Business Advantage Cash Rewards MasterCard. There’s the lack of an annual fee, the relatively low APR that applicants with sufficiently good credit can qualify for, and the intro 0% APR for nine months. The Business Advantage Cash Rewards MasterCard happens to be a great gas rewards card as well.

This card lets you earn 3% cash back on your first $250,000 per year in purchases at gas stations and office supply stores. Assuming you use this benefit entirely on gas purchases, that’s $7,500 in potential cash back you can earn each year on gas.

Combine that with membership in the Business Advantage Relationship Rewards program (which gives you an additional 25% – 75% rewards bonus on your purchases) and you can actually save up to 3.75% on your gas purchases. Not too shabby!

In addition to the above rewards, you’ll earn 2% cash back on purchases at restaurants and 1% cash back on all other purchases. If your spending on gas exceeds $250K a year, your remaining gas purchases that year will still earn you cash back, just at the 1% rate.

US Bank Business Cash Rewards World Elite MasterCard

US Bank Business Cash Rewards World Elite Mastercard


Compare

Annual Fee:


$0

 

Purchase APR:


14.24% – 25.24%, Variable

The US Bank Business Cash Rewards World Elite MasterCard is another business card designed to reward companies with significant driving needs.

You’ll be earning 3% cash back on gas, cellular, and office supply store purchases. The best feature of this card is the fact that there are no limits on the amount of cash back you can earn at the 3% rate. So, if your business has you spending more than $250K a year on gas (and on cellular bills and office supplies), this card will be a better gas card for you than the BofA Business Advantage Cash Rewards MasterCard.

The US Bank Business Cash Rewards World Elite MasterCard also pays out 1% cash back on all purchases not covered by the 3% cash back categories. You can also get an annual 25% cash back bonus based on your previous year’s cash back rewards. This bonus maxes out at $250.

In addition, this card carries no annual fee and comes with a very generous 15-month introductory 0% APR period.

SimplyCash Plus Business Credit Card From American Express

SimplyCash Plus Business Credit Card from American Express



Compare

Annual Fee:


$0

 

Purchase APR:


14.49% – 21.49%, Variable

Here’s another business credit card offering 3% cash back on gas: the SimplyCash Plus Business Credit Card from American Express. This is a solid gas card for businesses that spend a lot on gas but don’t spend so much that they stand to benefit from the high-to-nonexistent 3% cash back earning limits of the previous two cards discussed.

This Amex business card’s reward structure goes like this: You earn 5% cash back at US office supply stores and on wireless telephone services purchased directly from US service providers. Next, you earn 3% cash back on one of eight bonus spending categories of your choosing, and gas station purchases are one such category. You’ll earn 1% cash back on all other purchases.

The 5% and 3% cash back rates apply toward the first $50,000 in purchases in each category per calendar year with the 1% rate applying thereafter.

Beyond that, the card carries no annual fee, an introductory nine month 0% APR period, and the ability to buy above your credit limit provided you pay the amount above your credit limit in full each month.

Chase Ink Business Cash

Chase Ink Business Cash



Compare

Annual Fee:


$0

 

Purchase APR:


15.49% – 21.49%, Variable

The Chase Ink Business Cash card is one of the best business cards out there for cash rewards — and it also happens to work well as a gas credit card.

With the Ink Business Cash, you’ll earn 5% cash back on the first $25,000 spent in combined purchases at office supply stores and on internet, cable, and phone services each year. You’ll also earn 2% cash back on your first $25,000 spent annually at gas stations and restaurants, and 1% cash back on all subsequent purchases in these categories and on all other spending. If you do a decent amount of driving for work, but not a huge amount, the Ink Business Cash should work well for you as a gas card.

The Ink Business Cash has no annual fee and a 12-month introductory 0% APR period. You can also redeem your cash back for more than just a statement credit. Through Chase Ultimate Rewards, you can redeem your cash back for cash, gift cards, booking travel, and more.

Best Gas Rewards For Personal Credit Cards

Citi Premier Card

City Premier Card


City Premier Card
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Annual Fee:


$95, Waived for the first year

 

Purchase APR:


16.74% – 25.74%, Variable

The Citi Premier Card is a travel rewards card that offers 3X points on gas purchases. Let’s learn more!

With the Citi Premier Card, you can earn three points per dollar spent on travel including on gas purchases. There’s no limit to the amount of travel spending you can do per year while earning triple points. If either your business life or your personal life sees you doing lots of travel by both air and land, the Citi Premier Card should serve you well.

You’ll also earn 2X points at restaurants and on entertainment and 1X points on all other purchases. The card carries a $95 annual fee, though this fee is waived the first year.

While the card lacks an introductory 0% APR period, it does sport a nice bonus offer: 50,000 bonus points after you spend $4,000 on purchases within three months.

Blue Cash Preferred Card From American Express

Blue Cash Preferred Card from American Express


Blue Cash Preferred Card from American Express
Compare

Annual Fee:


$95

 

Purchase APR:


15.24% – 26.24%, Variable

With the Blue Cash Preferred Card from American Express, you’ll earn 6% cash back on your first $6,000 per year in purchases at US restaurants and an unlimited 3% cash back on all US gas station purchases. If you want a card that’s ideal for driving to the grocery store, the Amex Blue Cash Preferred card couldn’t be a better fit.

Along with the above cash back categories, you’ll earn 1% on all other purchases and on grocery purchases above the annual $6,000 high-earning limit. You’ll also get 12 months of 0% APR and a $200 statement credit if you spend $1,000 on purchases in your first three months.

Rewards can be redeemed for statement credits, gift cards, and merchandise from hundreds of retailers. On the downside, the card carries a $95 annual fee which is not waived for the first year.

Hilton Honors American Express Card

Hilton Honors American Express Card


Hilton Honors American Express Card
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Annual Fee:


$0

 

Purchase APR:


17.99% – 26.99%, Variable

Do you spend a lot on gas? Are you a frequent guest at Hilton hotels (or would you like to be)? If you answered yes to these questions, check out the Hilton Honors American Express card.

This Amex Hilton travel card offers 7X Hilton Honors points on all spending at Hilton properties, 5X points on all US gas station purchases and on all US restaurant and supermarket purchases, and 3X points on all other purchases.

Now, the 5X points you’ll earn on gas is about the best rewards earning rate you’ll find for gas purchases with any credit card, anywhere. The downside, of course, is that the points you earn can only be used for Hilton-related travel. But if that’s your thing, consider the Hilton Honors Amex card.

When you get the card, you’ll get complimentary Silver status in the Hilton Honors program, thus increasing the value of your points. And if you spend $20,000 on eligible purchases in a calendar year, you can achieve Gold status through the end of the next calendar year.

The Hilton Honors Amex card carries no annual fee.

Sam’s Club MasterCard

Sam’s Club Mastercard


Sam's Club Mastercard

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Annual Fee:


$0

 

Purchase APR:


17.15% – 25.15%, Variable

The Sam’s Club MasterCard offers an impressive 5% cash back on gas purchases. Considering the fact that you’re earning cash back and not proprietary points, that’s an eye-opening earning rate for gas purchases. However, you’ll have to be a Sam’s Club member in order to apply, and you can’t earn 5% cash back on gas purchased at the gas stations of competing wholesalers like Costco.

You’ll also earn 3% cash back on dining and travel and 1% on all other purchases. What’s more, the card has no annual fee, though Sam’s Club membership — a requirement to get the card — costs $45 a year.

Final Thoughts

Credit cards can lead you down the wrong path if they simply encourage you to rack up charges in the pursuit of rewards. However, a sizable portion of the population spends heavily on gas as it is. By using a gas credit card to earn rewards on these gas purchases, you can earn rewards each time you fill up at the pump.

Still on the lookout for a credit card that makes sense for you? Not sure you’ll qualify for the kind of card you want? Let Merchant Maverick help you sort things out!

  • Best free credit score sites
  • Ways to improve your credit score
  • Using personal credit cards for business

The post Gas Credit Cards: Top Business And Personal Cards For Gas appeared first on Merchant Maverick.

“”

The Step-By-Step Guide To Starting And Funding A Cleaning Business

Entropy is a powerful force. If there’s one thing you can rely on, it’s that everything gets dirty sooner or later. If it doesn’t get dirty, it gets cluttered. Add in the increasing prevalence of two-income households, the pace of modern work, and long commutes and it’s not surprising that more and more people are letting their chores slide. And that’s not even taking into consideration the huge messes businesses make. The fields are ripe for the harvest — why not cut yourself a piece of the action and start a cleaning business?

Luckily, the overhead costs of starting a cleaning business are fairly low (at least up until you start adding staff). Still, you’ll want to have a good sense of what you’re getting into before you dive into the cleaning industry. It’s vital to have a plan to tackle the expenses and challenges you’ll encounter along the way.

Not sure where to start? We’ll break starting and funding a cleaning business into a step-by-step process below.

Make A Business Plan

What separates a business from a side gig? Well, a lot of stuff, but one of the bigger points of delineation is whether or not you have a business plan and a clear strategy.

Creating a business plan can be an intimidating prospect, but you don’t need to have a business degree to write one. You don’t even need to have taken a class.

A business plan is, essentially, an outline documenting what your business is, what it does, how it’s organized, its financial means, and a strategy for how you intend to grow.

There are a lot of resources online that can give you an idea of what a business plan looks like, as well as templates to help you get organized, but a typical business plan has the following parts:

  • Executive Summary
  • Company Description
  • Market Overview
  • Sales & Marketing Strategy
  • Operating Plan
  • Organizations & Management Team
  • Financials

Calculate Startup Costs

The good news about launching a cleaning business is that it’s possible to start one with relatively little overhead.

At a bare minimum, you’ll need cleaning supplies. This assumes you’ll be doing the cleaning yourself and aren’t taking on any additional employees right away. If you’re cleaning residential homes, these supplies will more or less be the same ones you use to clean your own home. If you’re getting into commercial cleaning right away, you’ll likely have to invest in equipment (and possibly personnel) that can handle larger volume messes and expansive spaces.

If you plan on cleaning as more than a side gig, you’ll also need to pay fees to register your business. This isn’t a very big expense if you’re content with running a sole proprietorship (or partnership, if you’re starting it with someone else) –usually less than $50. You can also file a DBA, which allows you to legally do business under another name (the name of your company). We’ll get a bit deeper into it in the next section.

Additionally, you should factor in any initial advertising costs, as well as transportation costs for getting yourself or your employees to the work sites.

Register Your Business

Registering your business may sound intimidating, but it can actually be one of the easiest parts of starting a business.

Why should you register your business? At minimum, it protects the name you’re using to do business so that no one else in your area can (legally) use it. It can also help you qualify for business-to-business services and services that require an EIN number.

Incorporating, on the other hand, is a more complicated and expensive process that comes with its own advantages and disadvantages.

Here are the most common types of businesses you can register as:

  • Sole Proprietorship: By default, this is the type of business you’re running when you initially create one. You and your business are, for tax and liability purposes, considered the same entity. In fact, if you want to do business under a name other than your own, you’ll need to file a DBA (doing business as) with your local county clerk.
  • Partnership: Essentially the same as a sole proprietorship, except you started it with one or more other people. By default, you’re each considered to own an equal share of the business for tax and liability purposes.
  • Limited Liability Corporations (LLCs): If you’ve seen LLC after a corporation’s name, you’re dealing with this type of company. LLCs offer limited liability protection for their owners without the full complexity of a corporation. Each state has its own rules for how to start and maintain an LLC, and you don’t necessarily have to register your LLC in the state where you’re doing business (although you’ll generally want to). LLC owners report their business earnings and losses on their personal taxes.
  • C-Corp: This is the “basic,” default form of incorporation. Shareholders are considered the owner(s) of the company and receive limited liability protection; however, the business decisions are made by corporate officers who may or may not be shareholders. The corporation is taxed separately and shareholders pay income tax on dividends. To form a C-corp, you’ll file articles of incorporation with your state.
  • S-Corp: S-corps are similar to C-corps in most ways, but come with a few additional restrictions: you must have fewer than 100 shareholders and they have to all be U.S. citizens or residents. Unlike C-corps, profits and losses are reported on personal taxes, not unlike an LLC. In addition to filing articles of incorporation, you’ll also need to file IRS Form 2553.

Get Business Insurance

Depending on your local and state laws, business insurance may or may not be optional. However, given that cleaning involves a lot of physical contact with valuable items (not to mention the fact that you will be in the profession of making floors slippery), you may want to consider getting insurance even if you’re not required to have it.

General liability insurance can protect you in the case of lawsuits or accidents, including property damage and personal injury claims against your business. It can also make your business seem more professional to prospective clients.

Your own equipment is also subject to wear and tear, as well as accidents, so you may want to consider property insurance for any items that aren’t easily replaced.

While those are the big two worth considering, you may also want to consider other types of business insurance to help cover anything from worker’s comp claims to vehicle damage.

Seek Business Funding

Now that you have a sense of what your expenses will be, it’s time to see if you can cover them out of pocket and still pay your rent. If you can’t, and are unable to tighten your belt without sacrificing the tenets of your business plan, you may need to seek some source of external funding.

Where should you look?

Personal Savings

If you’ve saved up for a rainy day, the weather might start looking pretty stormy right about the time you’re starting a business. The nice thing about dipping into your savings is that you’re not taking on debt and all the expenses that go with it.

On the other hand, you are risking your own money, along with the lost-opportunity costs of not being able to invest that money in something else.

And, of course, you may not have been able to save enough to cover your expenses anyway.

Tap Your Support Network

If you don’t have the money handy, another option is to ask your family or friends for a small loan. Generally speaking, your support network will give you a better deal than even the most competitive bank will.

Asking your friends and family for money can be tacky and awkward if you don’t put their concerns at ease. You also may damage your relationships if you aren’t able to pay the money back within the expected period of time. It’s important to take a professional and organized approach.

If you do go this route, strongly consider formalizing any agreements you make so that all parties are fully aware of what they’re risking and stand to gain from the arrangement. Create and sign a contract, just as you would do with a traditional lender.

Credit Cards

For purchases you can pay off quickly, it’s hard to beat the convenience and incentives of credit cards.

Credit cards come in both personal and business varieties. You don’t actually have to own a business to get a business credit card, but their rewards programs are generally more geared towards business expenses.

If you’re going to use credit cards, be sure to use them wisely. That means paying them off within the interest-free grace period offered by your card’s provider. For personal credit cards, this is legally at least 21 days from the time you receive your bill. For business credit cards, there is no legal minimum, but most extend a similar one as a courtesy.

Just remember, if you fail to pay your card off with that window, carrying a balance on a credit card is an extremely expensive way to finance your business. And avoid taking out cash advances on your cards unless absolutely necessary.

Recommended Option: Capital One Spark Cash Select For Business

Capital One Spark Cash Select For Business


capital one spark cash select
Compare

Annual Fee:


$0

 

Purchase APR:


14.74% – 22.74%, Variable

Spark Cash Select for Business is great for businesses that don’t have their expenses concentrated in a single area, or that don’t want to worry about complex reward programs. You’ll simply earn 1.5% cash back on every purchase you make. There’s also no limit on the reward, so you don’t have to worry about exceeding a maximum threshold: whether you spend $20 or $500,000 in a year on your card, you’ll still get 1.5% back.

You will need to have excellent credit to qualify, however.

Recommended Option: Capital One Spark Classic

Capital One Spark Classic For Business


Compare

Annual Fee:


$0

 

Purchase APR:


24.74%, Variable

If you don’t qualify for Spark Cash Select for Business, Capital One offers an equally versatile card that’s much easier to qualify for. Spark Classic offers a similar cashback reward program, but the rate of return is 1% rather than 1.5%.

While not the most exciting card, it’s a good one for repairing your credit.

Loans

Business loans are frequently out of reach for brand new businesses–even the more risk-taking lenders generally want to see that you can keep your business together for at least six months before they’ll lend to you. That said, there are exceptions to the rule, with some lenders focusing on new businesses.

And remember, when you’re starting out you don’t necessarily need a “business” loan; personal loans can leverage your personal credit for an early cash infusion even you need it. If you’re buying a specific piece of equipment, you should also consider equipment financing.

Recommended Option: Lending Club Personal Loans

lending club logo

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Lending Club is a good option for individuals who may not have the strongest credit, but have a good debt-to-income ratio. The borrowing range is fairly narrow at $1k to $40k, but when you’re just starting out you don’t want to go too deeply into debt anyway. You’ll have three-to-five years to pay it off, which makes it fairly manageable while you’re building up your business.

Recommended Option: Lendio

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Lendio takes some of the frustration out of applying for a loan by allowing you to apply to their entire network of lenders all at once. If you’re thinking about tapping the alternative lending market for the first time, it’s a pretty good place to start.

They can’t necessarily help every business, but a shotgun approach can sometimes be easier than finding that one special lender.

Recommended Option: Upstart

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If you’re having trouble finding a lender who will work with you, take a look at Upstart. You’ll need to have at least fair credit and a regular source of income, but otherwise, Upstart’s way of evaluating potential borrowers is pretty unconventional (good news if you’re starting a business).

Better yet, Upstart’s rates are pretty reasonable and you’ll have three or five years (one or the other, not between) to pay your balance off. Unfortunately, they don’t currently lend within West Virginia or Iowa.

Need more options? Check out our feature on startup loans. Need a vehicle for the business? Read our auto loans guide.

Choose The Right Software

As your business grows and becomes more complex, managing the logistics of your company can become quite labor-intensive. If you don’t want to sink too many man-hours into keeping track of all that stuff, you’ll want to delegate it to a software program.

This doesn’t necessarily mean you have to enroll in a bunch of expensive SaaS platforms if it’s just you cleaning for a handful of clients, but it doesn’t hurt to know what kinds of options are available.

Types of software you may want to consider include:

Field Service Management 

This type of software centralizes processes and workflows for businesses that have employees who are dispatched to external sites for work. They often include features like scheduling, dispatching, and booking. Some also come with invoicing, payment processing, and customer notifications, so it’s quite possible to find an all-in-one service that meets your needs.

Scheduling Software

If field management software sounds like overkill, you can try scheduling software to manage your appointments and those of your employees.

Inventory Tracking

If your business is growing, and you no longer have time to run out to buy supplies every time you need them or use your clients’ stash, you may find it helpful to formally keep track of your inventory.

Accounting Software

It’s always a good idea to keep track of your expenses, accounts receivable, payroll and related issues, especially as your business grows and becomes more complex.

Data QuickBooks Online Xero Wave Zoho Books FreshBooks

Best Cloud Accounting Software

Best Cloud-Based Accounting Software

Best Cloud Accounting Software

Best Cloud-Based Accounting Software

Best Cloud Accounting Software

Pricing

$20 – 150/month

$9 – 60/month

Free

$9 – 29/month

$15 – $50/month

Customer Support Fair Poor Good

Very Good

Very Good

Ease of Use Moderate Moderate Very Easy Very Easy

Very Easy

Accounting Method Cash and Accrual Cash and Accrual Cash and Accrual Cash and Accrual Cash and Accrual
Review Visit Review Visit Review Compare Review Visit

Review Visit

Bolster Your Web Presence

A cleaning business can get pretty far on word-of-mouth and savvy networking, but expanding your reach in the digital age usually means you’ll want to bolster your web presence.

A website is still a very important way for potential clients to find out information about your business and what services you offer. Happily, for a cleaning service, it doesn’t have to be all that complicated. If you don’t want to contract the job out, there are plenty of services online that make it easy to build your own decent-looking website.

A spiffy website is only one aspect of an online strategy, however. You still need to get people to visit it. You’ll want to consider factors like search engine optimization (SEO) so that, for example, the phrase “kitchen cleaning Rochester” will return your website in the top results.

You may also want to use social media to build brand recognition, steer traffic to your site, and announce specials or changes to your services.

Delegate Work

If it’s just you and a cart full of cleaning supplies, you can skip this part. However, if you’re planning to grow beyond what one mere mortal can clean in a day, you may be taking on more people.

Employees

Taking on additional people as employees come with many advantages: you’ll be able to get significantly more work done, have a larger pool of expertise to draw from, and be more flexible with scheduling. This does come with some additional costs, as you’ll be paying some of the taxes on their salary as well as offering benefits (at least in theory), so be sure to grow your staff wisely and at a pace that fits the amount of business your generating.

In exchange, you’re allowed greater control over the parameters of how your employee works, where, and at what time. Setting a wage that’s fair and not abusing this relationship will generally improve morale and help you avoid the costly process of employee turnover.

Contractors

If you aren’t quite ready to take on employees but need additional help, you can hire contractors. Contractors are free agents who work for themselves even though they may be regularly and continuously used by a particular client (that’s you). Since they’re self-employed, you don’t have to worry about additional expenses beyond paying their fee.

Beware that many businesses make the mistake of treating 1099 contractors as employees, which can get you into pretty serious trouble. If you want to have employees, you have to hire them. As a general rule, you have no say over what jobs a contractor decides to take, the methods they use to complete the job, or the precise time they choose to do it.

Advertise Your Business

A strong web presence and social media campaign can get help get your name out, but we aren’t quite at the point where advertising is obsolete.

Since a cleaning business is constrained by geography, you have to physically send someone out to do the job. That means you can use your modest advertising budget to buy ads in your local market, which is usually cheaper than trying to grab eyeballs from several states away. Ideally, you’ll want to seek ad platforms utilized by the types of people who are likely to buy your services. Cash-strapped kids at the local state college campus probably don’t have a budget for cleaning services, for example (although some fraternities or sororities may), while busy soccer moms might.

Once you know who you’re advertising to, you can select a medium that fits your target demographic. Once you start getting new customers, ask them where they heard about your business so you can get a sense of which ads are working and which aren’t.

Even if you don’t have money to spend on advertising right away, put the word out to your own social network that you’re offering cleaning services. Word can spread fast, especially if you have a reputation as a trustworthy person.

Final Thoughts

We still haven’t invented self-cleaning spaces, so you have a potentially bottomless demand for your services. With relatively low overhead, a housekeeping or cleaning business is one of the more accessible industries to jump into, so if you have the skills and the inclination, why not give it a try?

The post The Step-By-Step Guide To Starting And Funding A Cleaning Business appeared first on Merchant Maverick.

“”

The Complete Guide To Stripe Pricing And Costs

Are you curious about what makes Stripe different than other third-party processors like Square and PayPal? And if the costs are comparable? Come along as we explore Stripe — a lesser-known payment processing option that has definite potential when it comes to eCommerce.

Even though Stripe has less name recognition than competitors Square and PayPal, Stripe has likely processed many of your recent online shopping transactions without you even realizing it. That’s because Stripe powers payment processing behind the scenes for some of the biggest retail chains around — places like Target, Lyft, Facebook, Adidas, and Under Armour. Yes, Stripe has one of the most respected and well-trusted platforms in the world, but instead of providing branded, customer-facing tools like its peers, it focuses on delivering developer-friendly solutions with extensive code libraries and lots of customization options.

If you are looking for a ready-made, polished solution for eCommerce payment processing, Stripe may not be the ideal choice. A solution like Square may be much better suited to your needs. If, however, you want to build your payment processing platform from the ground up (and have the technical resources to do so), you’ll find a range of robust, world-class developer tools.

In this post, we’ll talk about what kind of payment processing Stripe provides (and why it matters), and then dive into costs associated with transactions and/or other handy tools you may need.

Overview Of Stripe

Stripe is a third-party payment processor — just like PayPal and Square. Traditional merchant account providers vet and approve each individual merchant, creating a single account for that business. Third-party processors, on the other hand, make it much easier for a business to quickly access payment processing services because they combine many business accounts together into one giant account. Stripe’s processing model relies on maintaining account volume to reduce risk for the group as a whole; for that reason, it can become a bit of a numbers game for them to remain profitable. If something looks fishy, they are more likely to terminate, freeze, or put an account hold on a business without a lot of warning.

Now, most of us feel a bit squirmy when we imagine our hard-earned revenue potentially held ransom in a purgatory account, but the truth is, freezes and holds happen only to a tiny percentage of businesses — and typically only after certain red flags have been raised. If you want to learn more about how to avoid waving some of these red flags, check out our post: How to Avoid Merchant Account Holds, Freezes, and Terminations. The majority of business owners will not have to worry about a freeze or hold, so it’s important to keep that whole issue in perspective.

Now back to the good news. Stripe has a lot of features and benefits for a growing small business, such as:

  • Transparent pricing
  • No monthly or termination fee
  • Payment security using advanced machine learning  
  • Libraries in every language
  • Display multiple currencies (add 1% for automatic conversion)
  • Versioned API changes
  • Test-friendly environment
  • 24/7 live chat and phone support
  • iOS and Android dashboard apps

And when it comes to creating the finished solution, you don’t have to do it all. There is a workaround for those of us who may not have all of the coding skills (or time!) to build it all from the ground up. Stripe has established platform partners to integrate a range of small business tools from accounting, automation, form building, CRM, inventory management, and booking — just to scratch the surface.

One thing we like about Stripe is that, unlike some companies, Stripe offers support for safe and PCI compliant migration of credit card data whether you are coming or going. Some third-party processors don’t support exit migration at all, so this is a nice touch.

Now that you are a bit more familiar with this platform, let’s check out the costs associated with processing payments.

Stripe Payment Processing Costs

Most savvy business owners want to cut to the chase. “Great, so how much does it cost?”

Stripe’s payment processing costs are straightforward, but your per-transaction costs will largely depend on the type of transaction you’re processing. Discounts and some pricing differences apply, so stick with me as we go through some different scenarios.

Online Transactions

For any eCommerce transaction (including in-app and mobile web payments), you are going to pay 2.9% + $0.30 per successful card charge. It doesn’t matter whether you process Visa, MasterCard, American Express, JCB, etc. — all cards cost the same to process. You also pay the same price whether you build your own site or connect to a third-party shopping cart.

Another great thing about Stripe is that you can accept international cards (for an additional 1%). If you need to convert the currency, however, you’ll have to pay another 1% on top of that. This is great for businesses that sell internationally, especially combined with Stripe’s ability to present prices in the customer’s local currency. 

Stripe also allows merchants to accept more than just credit cards, providing the tools that allow you to manage ACH and other payment options. Here is what it’s going to cost you:

  • ACH Credit: Starting at $1.00 per ACH credit payment
  • ACH Direct Debit: 0.8% per transaction, capped at $5
  • Wire: $8.00 per wire payment

Stripe also allows you to verify your customers’ bank accounts at no extra charge. That’s a nice touch. However, if payment doesn’t go through, you are looking at $4 for failed ACH direct deposit payments and $15 for disputed ACH direct debit payments.

In-Person Transactions

 

Stripe POS

Want the same customization for your pop-up shop or brick-and-mortar store that Stripe brings to your online presence? Introducing the Stripe Terminal!

For in-person payment processing with the Square terminal, you’ll pay 2.7% + $0.05 for each successful card transaction. But before you get too excited, Stripe Terminal’s programmable point of sale is currently in beta and available upon invitation only. You can request approval now, and if you are approved, you can buy a developer kit to run in test mode until they begin supporting transactions in live mode (this is expected to roll out very soon).

When it comes time to choose your reader, you can integrate with the Stripe Terminal through a combination of an iOS SDK and mobile reader or a JavaScript SDK and countertop reader. Stripe suggests the latter if you’re looking for a fully branded experience and have a strong developer proficiency.

Payment Security Note: As far as payment security and PCI-DSS compliance go, the Stripe Terminal is EMV Levels 1,2, and 3 pre-certified. So it can help a wide range of businesses get started without having to dedicate extra resources to payment security. But for now, you’ll have to wait to process live payments until it graduates from beta testing.

Does Stripe Offer Alternative Pricing?

QuickBooks For Nonprofits

We do get a lot of comments about the fact that Stripe (and other third-party processors) can be expensive for some businesses. Fortunately, Stripe does offer volume-based discounts for large businesses. In addition, you may be able to qualify for custom pricing if you run a nonprofit or have a unique business model. Stripe doesn’t give any hard and fast details about alternative pricing, however, so you’ll have to contact the sales team and discuss your business model with them directly.

Does your business process very small transactions ($10 or less) on a regular basis? The $0.30 per-transaction fee might be prohibitively expensive, and an alternate payment model catering to these microtransactions can save you money. Here’s what Stripe says about support for microtransaction payment processing:

Microtransaction support varies from market to market. If you process more than $100,000 per month or have a unique business model such as marketplaces, microtransactions, or unusually large order values, reach out to us, and we can discuss availability and options. In markets where microtransactions aren’t available, a common approach is to batch together multiple transactions from the same customer and submit them as a single, larger charge.

Stripe Pricing For Other Tools

Stipe offers a healthy selection of additional tools and add-ons. Below, we break them down for you and include information about pricing to help you make an informed decision.

Billing

Stripe Billing offers recurring payments and subscription tools built around the customer experience. For the recurring business model, you will have a lot of tools to help you engage customers and reduce turnover (more on that below). And as far as billing your customers with one-off invoices or setting them up for automatic recurring payments, there are no limits on how many invoices you can send, ever.

To be clear, all Stripe Billing fees are charged in addition to the processing fee (2.9% + $0.30 per successful charge).

If you’re only expecting to process a small volume of recurring payments, or you’re new to Stripe, the Starter Plan has everything you need. Your cost for using the Billing tools is 0% for the first $1 million of recurring charges, and then 0.4% after that. Stripe doesn’t charge anything extra for one-off invoices. 

For businesses that are billing at large volumes and want advanced features to manage billing from order cash, Stripe offers the Scale plan. You will pay 0.7% on recurring charges, in addition to the payment fees of 2.9% + 30 cents per successful charge to a card. However, Stripe also offers discounted ACH to businesses on the Scale plan, so there are potential cost savings.

Here is a screenshot from Stripe’s comparison of their Starter and Scale packages:

Stripe

The above is a long list of out-of-the-box tools you can put to use pretty quickly. Even just the business analytics, reporting, recovery tools, and webhooks make a compelling case of high value to cost ratio. Stripe touts that its recovery tools have “reduced payment declines for users by 45% on average and increased revenue by 10% on average.”

All-in-all, any SaaS or subscription-based business could benefit from the features in Stripe Billing — and Stripe offers a free trial with no setup or fixed monthly fees, so there doesn’t seem to be a downside to trying it out.

Connect

Connect is “the payments platform for platforms.” If you are a marketplace or a platform, you can utilize Stripe Connect to accept money and pay third parties. Connect is API-first, meaning you have the freedom to design a unique experience including onboarding, set payout timing, and integrated financial reporting, to name a few.

Connect has three account options including Standard, Express, and Custom. The cost for Connect Standard is included with Stripe — you have no additional platform-specific fees to add payments to your platform. Additionally, you’ll get a full Stripe Dashboard, dynamic risk-based KYC/AML checks, international support in over 25 countries, and hosted onboarding and verification.

Custom and Express Connect costs $2 per active account per month + 0.25% of account volume. With these accounts you can do things like build branded onboarding flows, control payout timing and funds flow, automate 1099 tax form generation and delivery, and have a platform management dashboard. The difference between Express and Custom is revealed in the names themselves. Express is a faster option requiring low integration effort to onboard recipients quickly and at scale (e.g., an on-demand marketplace), while Custom is an option for platforms to completely customize the user experience.

International connected accounts will run an extra 0.25% cross-border charge on monthly account volume. Additional fees also apply if you utilize Connect tools such as account debits (1.5%) and payouts ($0.25 per payout). However, as with Stripe’s other pricing models, the company is always up for discussing volume pricing for large platforms and alternative pricing options for low volume accounts. And if you’re a startup affiliated with Stripe Atlas Network, you can contact Stripe to learn about their custom startup package.

Stripe Connect

Sigma

Sigma connects you to your business data with a wide range of applications from business operations to finance, data analysis, and product management. Sigma doesn’t require any setup or ETLs; all you need to do is write SQL queries to create the custom reports on your dashboard. Pricing for Sigma is based on how many charges, authorizations, and application fees your business processed in the previous month. Fees start at $0.02/charge for 1-500 charges and incrementally decrease with charge volume.  

Radar For Teams

While all of Stripe’s payment processing software is fully PCI compliant and therefore meets global payment security standards, Radar is available as well. Radar bolsters your defenses through advanced machine learning. Radar learns from “hundreds of billions of data points across the Stripe network to help millions of businesses fight fraud.”

Radar is included with your standard and custom pricing plans. However, Radar for Fraud Teams is also available for an additional cost of $0.02/per transaction. Radar utilizes data and tools that support the detection and blocking of fraud, and it can decrease the false positives that block legitimate customers, too. Stripe has done a very good job at creating layers of security and data insights into their product — and you don’t need to dig into the code to make use of it because it all happens at your dashboard!

Is Stripe A Good Fit For You?

It’s pretty clear that Stripe goes far beyond your run-of-the-mill payment processing solution. The real meat of Stripe is its rich developer tools that give you the power to customize everything about the payment experience while giving you deep insights and analytical data you can use right away.

Businesses that want a fully branded, ready-to-scale solution — as well as subscription-based businesses, marketplaces, and tech-focused companies — will likely find all the tools they need and then some. However, for the eCommerce business that simply needs a reliable and secure payment processor, Stripe may be overkill. If you don’t have the technical expertise or don’t have developers on staff, you may never tap into Stripe’s potential. An option like Square may be a better fit. Square offers fast setup, no recurring fees, and up-front pricing that suits most small businesses nicely. Additionally, Square provides an extensive dashboard that reveals basic business and financial analytics with no integration required.

Not sure what you need? Check out our Stripe vs Square comparison or read our Stripe Review for an in-depth analysis. Or if you want to explore your options even further, check out How to Choose an eCommerce Merchant Account.

The post The Complete Guide To Stripe Pricing And Costs appeared first on Merchant Maverick.

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