If your customers or clients are currently paying you via Paypal, we have an alternative that can save you money!
If you get lots of website sales, then this may not be practical for you. But if you charge for services like photography, cosmetics or fitness training then keep reading.
How much do paypal charge?
Paypal charges are quite steep and can be as high as 3.4% plus 20p per transaction for businesses with less than £1,500 being received a month. The fees decrease to 2.9% plus 20p if you get paid between £1,500 – £6,000 per month, then taper down to 1.9% plus 20p as it gets to £55,000 per month.
Do your invoicing using Xero and GoCardless. You can create and send an invoice to customers in seconds. They can then pay with a couple of clicks. If they are a regular customer, they can agree for future payments to be taken automatically. Shortly after an invoice is issued, payment will be taken from their account.
The transaction charges are 1.75% or a maximum of £2 and are deducted from the amount paid into your bank and you won’t be left with a bill each month like with Paypal. Xero is around £20 a month and will also help you with your accounts and a lot of other things that save you time and make your life easier.
How much can using Xero and GoCardless save me?
We recently spoke to a new client that had been charged £24 on £700 she received from a customer. If she had been using Xero with GoCardless, the charge would have been £2. This is a saving of £22 and over the course of a year could make a significant impact on profits and cash flow.
For example, 5 invoices a month at this level would mean a saving of £110 a month and £1,320 per year.
Here’s a table to show potential savings per transaction. We know Xero costs around £20 a month, but for the time it’ll save you, it’s worth it.
If you’ve not got the time or need help, we can set this all up for you. We’ll register you for a Xero account, set up your invoice template and upload your logo, sign up for GoCardless, connect GoCardless to Xero and give you a demo of how it all works, so you’re ready to start using it!