Finance Questions? Ask a Financial Expert for Answers ASAP
Thank you for your post. What is your question?
When I google "accept credit cards online" I see several choices.
okay...the best, XXXXX XXXXX choice to implement is accepting PayPal
I've used PayPal for decades. Is it easy to set up a SEPARATE PayPal account?
Yes, you can set up a business account
We've retained the services of a Spanish/English speaking person in Mexico to assist in renting our timeshare inventory.
We pay this person by my personal PayPal account.
That person communicated with a WHOLESALER who paid about $10,000 during Spring Break 2013.
My subcontractor suggested the wholesaler deposit directly into our personal Bank of America account in the USA.
Our subcontractor mentioned "so they (our subcontractor) would not be tempted."
Our best customers are Canadians (their economy is great) and Americans.
Yes, and PayPal accepts payments from around the world. You can just set up a business account
We don't have a DBA at the moment.
Well, that's easy to get
Perhaps we should use a separate US Banking account to be associated with the PayPal account for rentals.
Yes, it's the best idea to separate personal and business accounts
One concern with PayPal that is often voiced by timeshare owners on online message boards: A renter can pay with PayPal, use a fantastic resort for a full week, then dispute the full charge once they check out. PayPal immediately REFUNDS the renter and then the owner needs to try to collect.
We are rarely in the USA, so getting a DBA and opening an extra bank account is not as easy as one might assume.
That would be a problem, but a similar thing happens with credit cards. People can dispute those charges too - it's called a chargeback
I've rented four weeks for about $4,000 (which only covers maintenance fees) at a particular resort to a Canadian couple for the past 3 years. In the past, I've just had them pay the resort with their credit card. However, since they always let me know the dates they want six months prior and the maintenance fees are not due until six months prior, I'd rather they pay me by credit card and I'll pay maintenance fees later.
Would accepting cash deposits into an international bank like HSBC reduce chargebacks.
Yes, it's harder to get your money back if you wire it to someone else. So, if they make a direct cash payment it would be extremely hard for them to get that money back.
Renting timeshares to Mexicans on a RETAIL level (to the ulimate consumer) brings in people who need to make payments. Paying $700 to $1000 per week for a vacation seems more difficult for them than US/Canadians.
We leave the US again in about a week.
Should we try to open a HSBC now.
Yes, I would go ahead and open up an account
We currently have nine bank accounts and I'm trying to streamline/consolidate our financial accounts in case a successor trustee needs to help us if we are in a common accident. I am nearly 60 years old. My husband is much older.
You can still do that
HSBC had been suggested to us by a timeshare sales manager in Mexico.
We're not sure if there is a better choice.
In Mexico - Santander is affiliated with Bank of America in the USA.
I believe Bancomer is affiliated with Citibank in the USA
I see a lot of HSBC used for foreign accounts
Either or is a good choice. I wouldn't say one is better than the other.
We have accounts with Bank of America, Citi, Chase etc
A few years ago, HSBC told us if we opened a US HSBC account, we could use their associated ATM card worldwide without extra fees.
At that time, we would have needed to deposit $15,000 USD into HSBC to avoid service fees on our account.
So, how may I help you today?
If I understand you (MyVirtualCPA) your suggestions are in this order: open a NEW PayPal account, or use a bank like HSBC for direct deposits from customers who have a HSBC near them (We do not have a HSBC anywhere near us so we'd have to only use it online or while traveling).Some background info re my experience with credit cards: Between October 2008-April 2009 while we were outside the USA, and saw the TV news of the global financial meltdown, suddenly many of our personal credit card credit lines were slashed. Like $150,000 credit line on a Bank of America account was reduced to $2500. I had no idea until we arrived in Dublin, Ireland to rent a car and our American Express & several credit cards were declined. AX Hilton Honors had reduced the credit line to $500. We prefer to decline collision damage waiver from car rental companies & use AX's Premium Car Rental protection (low cost for the length of the car rental transaction).
Your customers can directly deposit into your HSBC account, even if there is none near them. All you do is give them the wire information and they can make a wire from anywhere in the world.
But, you're correct about my reccomendations
Many customers do not trust ONLINE banks. The WHOLESALER for Spring Break 2013 weeks who does not speak English refused to deposit to Santander (Bank of America's affilated bank in Mexico) and insisted on delaying the payment until his contact in the USA received a wire from him then went to a Bank of America in El Paso, Texas to deposit directly into our BofA account. Generally we do not wish to deal with WHOLESALERS as they can be obnoxius, demanding and assume we are desperate for their business.
That's fine. You have my recommendations - use PayPal to accept your credit cards, and open up a bank account that customers can deposit directly to.
https://www.paypal.com/webapps/mpp/merchant Do you recommend PayPal Standard, Advanced or Pro
Is there anything else I can assist you with today?
You can try to rate again, I had a feature disabled.