Is It Unprofessional to Decline PayPal Payment as a Trusted Supplier?
As a self-employed artist running a growing business, it’s essential to establish a payment system that aligns with your financial goals. Having worked seamlessly with a particular client for over two years, I’ve recently transitioned to Xero for invoicing invoices, moving away from Shopify. My latest invoice for this client totaled £500, and while he requested PayPal as the payment method, I complied.
However, with a new invoice of £750 on the table, it’s likely he’ll ask to use PayPal again. This brings up the concern of incurring a £20 fee — a noticeable amount when considering he’s receiving wholesale pricing on small orders and bypassing my usual scheduling. Honestly, £20 could easily cover a meal out.
This scenario brings me to ponder: Is it unprofessional to decline PayPal? I believe, given our established rapport and his trust in me as a supplier, it isn’t. Many businesses I deal with prefer bank transfers, which are standard practice.
Alternatively, should I consider charging an additional £20 if he insists on PayPal? Though this approach makes me uncomfortable, it’s crucial to balance out the costs effectively.
It’s worth noting that for regular customers through my website, PayPal remains an option. But, considering the special nature of this wholesale relationship, and the extra efforts I extend for this client despite occasional challenges, reclaiming that £20 seems justified.
I’m eager to hear your thoughts and experiences on managing similar situations!
2 Comments
It’s a common dilemma in business, especially when you’ve established a long-term relationship with a client. Saying “no” to a particular payment method, especially one that incurs additional costs for you, is not inherently unprofessional. Rather, it’s part of managing your business sustainably and ensuring that both parties understand the terms of the transaction.
Firstly, it’s important to assess the impact of absorbing the PayPal fee on your overall profit. Since your business is growing and you’re using Xero for invoicing, this could be an excellent moment to reassess your payment policies. It’s reasonable for businesses to establish payment guidelines that best suit their operational needs.
Here are a few suggestions on how to approach this:
Transparent Communication: Be upfront and professional in communicating your preferred payment methods. Transparency helps maintain trust and sets clear expectations. You might say something like, “For larger transactions, we prefer bank transfers due to the fees associated with PayPal. It helps us keep costs manageable and pass those savings on to you in other ways.”
Offer Alternatives: If PayPal remains a convenient option for your client, and they’re adamant about using it, consider negotiating. Propose either sharing the cost of the PayPal fee or billing an additional small amount to cover the transaction costs. This approach can be framed positively, outlining the mutual benefits of keeping transaction costs low.
Highlight the Value: Remind your client of the value they receive—such as wholesale rates and expedited services—and how these perks are part of maintaining a cost-efficient payment process. Sometimes clients need a gentle reminder of how they benefit from your policies.
Formal Payment Policy: Consider formalizing a payment policy if you haven’t already. This promotes a standardized approach for all clients and removes the awkwardness of case-by-case negotiations. It can include a clause about additional fees for certain payment methods that attract charges.
Client Relationship: Balance your approach with the value of the relationship. If the client is particularly important or strategic, absorbing the fee this time while explaining the policy can preserve goodwill. Building relationships often involves strategizing on the right moment to assert certain preferences.
Innovative Solutions: Explore cost-effective solutions that might work for both parties. Some payment processors offer discounts for high-volume transactions, or you might be eligible for lower rates depending on your overall PayPal usage.
Ultimately, it’s about maintaining a professional relationship while also ensuring the sustainability of your business model. By addressing this
This is a thoughtful post that highlights a common dilemma many freelancers and self-employed professionals face. Establishing a payment system that works for both you and your clients is crucial. It’s important to remember that saying no to a payment method is not inherently unprofessional, especially when it affects your bottom line.
In situations like this, transparency can be your best ally. If you feel comfortable, you might consider having a candid conversation with your client about the fees. Explain how using PayPal impacts your finances and propose alternatives that might be more beneficial for both parties.
You could also explore the idea of a small fee for PayPal transactions, which is becoming more common among service providers. It’s all about setting clear boundaries while maintaining a respectful and open dialogue. That way, your client understands your perspective, and you can keep your professional relationship strong.
Additionally, if you see recurring requests for PayPal, it could be worthwhile to assess whether you want to position it as a standard payment method for all clients with a clear fee structure. This way, you can maintain fairness and consistency in your payment processes.
Lastly, engaging in discussions with your peers or within professional communities can provide you with more insights. How others handle similar situations may offer alternatives you haven’t considered yet. Looking forward to hearing what others think!