Going Cashless in Your Business | SBEP Operations Class
[Music] welcome everybody to our presentation today uh going cashless in your business my name is mike bindrap i am an instructor with uh unr extension small business education program and uh we're gonna go ahead and begin but before we talk about uh our topic today i just want to give a plug for one of our great partners the nevada department of business and industry and they do so much for small business in our ecosystem in our state here and they have a business resource center on their website if you go to business.nv.gov it's a great resource and they have something called the roadmap and you can click and download this it's an interactive pdf file and no matter what you're doing in business in southern nevada if you want to plug into our small business ecosystem this is the place you can do it it has a list of all of our resources that are there including our program we're part of this as well and it's uh it's it's one of a kind that we have here for our state so if you want to plug into our small business ecosystem please download the roadmap today you can access that at business.nv.gov and want to thank the state of nevada's department of business and industry for being such a great resource partner always being very supportive of our program and moving ahead with small business issues here so today we're talking about payment options right different uh different cashless systems so our outlet today we're going to talk about different payment app options we're also going to talk about best practices to help you organize your accounting and some action plan strategies for success so first of all we're going to talk about paypal okay paypal is our largest payment processing uh system that we that we have um they're a multi-national financial technology company they were established in 1998. they had six founders one of which was elon musk right and went through an ipo later that year ebay bought them for 1.5 billion and then spun them off in 2015 to become their own independent company and is ranked 134th of the fortune 500 companies in the united states so just a behemoth company that's there they're our oldest and largest payment processing system that we have in the united states so what does paypal allow you to do and if you're not familiar with paypal you probably heard about it paypal's the most widely recognized brand name that we have it allows you to accept payments so you can accept payments on your website when you're checking out simple solution paypal has has branched out to allow customers to buy now and pay later uh usually in four interest free installment payments through paypal credit at no additional cost to you as the business owner which is kind of nice so you can give people the option to use that or not um also paypal is great they allow you to have recurring payments and subscriptions that are on there so if you have somebody that's purchased for example if you want to sell a newsletter or you have some kind of return charge that you can give to them that's able to do you can you can set this up on paypal so that you can actually say um you know i have a subscriber and they're going to get uh charged 12 a month for the rest of the year you can set that up to have that recurring and that automatically goes out and bills people and they get an email uh in their ma in the in their inbox that says hey you owe us twelve dollars and they with one click they can pay it what's a great option about paypal too is they they're it for invoicing and estimates okay so you can actually invoice your customers right inside of paypal a lot of people aren't aware of that so it's great for small business you can also send estimates over if you're uh if you're doing a uh for example construction right you can send an estimate over to somebody for construction if they say yeah okay go you can convert that very quickly just like with one click into an invoice and then the people can pay you based on that you can also sell on social networks so whether you're selling on facebook or instagram or even twitter at this point you can create shareable listings that can track across different social media platforms which is kind of nice um they process all debit and credit cards so anybody you don't have to have a paypal account to pay somebody who's who's who's asking for payment through paypal so paypal is a processor just like when you use your credit card at any retailer it's the same same concept with paypal right they process all credit cards american express discover um anything that the any place that can take any sort of debit or credit cards uh paypal allows you to do both of those things okay one of the coolest things about paypal is they were one of the first services that offered a business debit card so when you receive payments through paypal you have your business debit card and you can either you do one of three things you can send the funds to your own personal bank account right or you can use the business debit card and you can go shopping or you can go to an atm and pull the money out so it works quintessentially like an online bank account for you now paypal as well as all the services we're going to talk about today all tie in to your bank account so when you set this up you you tie everything in together so like i said paypal is this business debit mastercard which is terrific which allows you to have really great access over your money what's really cool is you can pay your contractors and vendors directly from your account and you can schedule these payments so if construction if you have construction draws you can actually do this through through uh paypal they're a little trickier to set up directly through your bank right uh also payouts like if you have different let's say you have different either employees or people you're paying uh like let's say you got sales people across different countries that use different currencies you can schedule multiple disbursements to people in in different places at the same time so payouts can be received in 96 countries in 24 different currencies just about everybody is on paypal okay i remember uh back a few years ago the only country in the western hemisphere i think was uruguay was not on paypal for whatever reason but i think that's been rectified now and they're like i said 96 countries pretty much if you're doing business you'll you'll fall within this net so it'll be good um at the same time too uh there's 30 million merchants who rely on paypal as their processor of choice when you get there and like i said they they're they're the largest they also have a new thing called zettle settle right which is their point of sale system so they actually sell terminals and we'll talk about that in a second they'll sell terminals and actual physical hardware just like when you go to your bank you want to purchase a credit card processing station uh zettle does that and that's their their branded platform for point of sale and also paypal uh acquired um venmo recently okay and one of the things venmo did was they use qr codes for complete cashless payments right so and you may say mike how are qr codes uh how does that make stuff easier for my business well let's say you're you're operating a business like maybe you're at a uh you're at a uh farmer's market or you're operating a food truck or something like that you can put your qr code right up just like it shows here somebody can just shoot that with their phone and they already have all your information and you just tell them how much you're sending them you send it to them and they get it completely cashless payment which is really nice venmo kind of pioneered that uh because venmo is part of paypal uh they're they're they work in tandem perfectly so that's that's kind of a cool feature that it's there so like i said this is settled um run your business the way uh with paypal zettle and this is their point of sale they have tons of different things they have an entire website inside of the paypal site that's dedicated to settle so if you need to get point of purchase equipment depending on the type of business that you have there are several options paypal is definitely one to look at for this you can you can run the entire back end of your business on paypal if you needed to which is which is great originally it started yet just as a credit card processor but it's a full end uh banking system now which is which is nice our next one we're going to talk about is venmo and venmo's kind of the one of the new kids on the block uh it was founded in 2013 uh by two roommates at the university of pennsylvania which is kind of cool venmo account holders can transfer funds via mobile phone app but both the sender and receiver have to live in the united states okay so that's we we have some banking rules due to uh because of terrorist activities and money laundering um most of the time uh these transactions have to happen in the us for these these kind of uh cashless payment systems so originally venmo was was started as a way to split the bill with friends you guys you go out to the movies somebody picks up on their card nobody has cash can i just venmo you the money right i found out about this from one of my uh my nephews was like just venmo me the money i was like what's that and uh so so there it is so because they got bought by paypal um all merchants that accept paypal can now accept venmo which is which is terrific and what's what's interesting about venmo if you've ever used venmo um first time i used it was a little odd because it's it's a social it has a social component to it so venmo publishes every peer-to-peer transaction without the amount the amount's not there but if i open up venmo right now anybody who i'm friends with on facebook or any social platforms it'll show me their what they're doing so which is a little weird you know i'm i'm i'm a little older i'm a little nervous about stuff like that right so um it'll say hey dave paid uh they've paid phil and then he can put the stuff down there and so you can put uh you know for babysitting or piano lessons i was just scrolling through yesterday i was looking it was like um you know for dinner thank you or for babysitting or for gymnastics lessons or for this or for that and what happened was originally this feature was built in you couldn't turn it off or anything and that was a little odd when i first started using it but in the last year they had uh it was there's a feature researchers showed that that's a little too revealing about who we're doing business with in some situations so you can choose not to publish that now there was a there was a lawsuit that came out and so they they changed that uh that so that it could it could be they could be turned off so like when i purchase i turn it off but you know um and you can put funny stuff on there if you want to i was looking through a few my friends were putting some funny stuff on there but um it it's all it's all good but it was supposed to be kind of a social experience and so your friends are using it you're using it you can see who uses it which is kind of nice and so it's and you transfer money it's there in seconds which is which is terrific so in venmo benmo recently like within the last year because of um because of the paypal paypal purchasing them they've really started to lean towards business okay and so if you if you have a venmo account you can get a business profile and it's very simple to set up it's very it's it's similar to kind of google my business if you get a venmo profile you simply add your profile pic your background image and it appears in your customers feeds um showing up what what what they bought for you right so it looks just like this when you sign up you you literally tap create a business profile you customize it and you publish it it's super simple right and like i said benmo pioneered these touch free transactions with a qr code kit so you can get a free qr code from venmo that you can just show to people and there you go so for a um for like a non-profit let's say you've got a non-profit if people want to donate to the nonprofit real simple you just show them your qr code you can print that qr code on the back of business cards and hand those out and say please donate this year to this thing um my nephew's kid came over the other day he's running some kind of a turkey trot thing for thanksgiving raising money for their elementary school and i said okay i'll donate 20 bucks to it and so i went to donate and i had to go through this very archaic system it took me 15 minutes just to set this up and i had to fill out all this information do this on this online platform if you would add a card that says do it via venmo i could have clicked it and within two clicks you're done make it easy for people to give you money i can't stress that enough we like to do business with people that make it easy for us to do business with so so make sure that that that happens so uh venmo's very inexpensive too so their transaction fees are 1.9 plus 10 cents
per transaction when you're purchasing uh through a business through a business account so that's a very low fee which is which is wonderful and so i think that um paypal has been targeting venmo to hit some of the areas that they were kind of weak in and it's very interesting so venmo like i said is accepted everywhere that paypal is venmo is there too their rates are a little bit better so definitely set yourself up a business profile and and have that it's free to get set up and of course venmo venmo just sent me a debit card too for my my business account which was kind of cool and so just like paypal you have a venmo card that when you get paid you get notification you got paid you've got money in your venmo account you can now wire that money to your personal bank account you can go shopping or you can go to the atm and pull that cash out and it's available instantly which is really a cool feature that it has all right next we're going to talk about zell zell is the service that everybody has but you probably don't know you even have it so zell is owned by a company called early warning systems llc it's a private financial services company but guess who owns early warning systems it's owned by several large banks okay so it's owned by bank of america bb t capital one jpmorgan chase pnc bank u.s bank and wells fargo how's that for a laundry list of heavy hitters in the financial services sector what happened was uh these banks saw that people were using services like like paypal like venmo and they said hey we need to have our own system in place for for doing easy transactions easy sending of money cashless systems like this so what zell does is it enables individuals to electronically transfer money from their bank accounts to another registered user's bank account once again within the united states remember we have those laws using a mobile device or the website for participating banking institution most of the time this is built into your your apps and it was it was launched in 2017 so they're kind of a little late to the game however most banks if you're a member of any of these banks you have this app already built in this is the way you transfer money so why use zell it's it's it's it's on your phone already you may not even realize it but if you're a wells fargo customer or a bank of america customer or a chase customer it's there already so there's more than a thousand banking apps that use zell automatically into it so it can it works with anybody that has a bank account that has zell you can shoot the stuff right to them which is really nice all you need is their phone number or their email address to pay them right through your banking app and what's great is it's in your banking app so you can do it it's secure and it's free to use which is great so if you're sending money for babysitting or whatever i actually pay my child support through zell to my ex how about that right simple boom two clicks and it's done uh it's very easy it's very effective it's inside your bank account and it's secure so how to send money with zell you simply log into your app you pick the person to pay you choose the amount that's it as i mean seriously takes less than one minute to issue a payment to someone through zell which is nice okay i just went on to zell's site and i pulled i pulled a screenshot of it says can you it says get started find my bank i just pulled the first page of the bees and there's probably eight pages of b's because it has bank in the name right there's like over a thousand participating institutions so like i said chances are you're already on this and you already have this so you definitely want want to do that um now it shows the z dollar sign yes absolutely thank you for saying that camille so so you don't send to somebody that isn't signed up absolutely they have to be part of it so that that's a that's a that's a great great feature that it has there so i know uh five six years ago we started with this online bill i was with chase a few years ago when they introduced this kind of online bill pay and it was kind of like huh what do you mean you could pay my bills for me yeah how do we do that well you just you got to set it up and it was a little clunky right and so this is all previous to these systems and now with zell it really simplifies things which is great okay let's talk about stripe you may not have heard of stripe but stripe is uh it's an irish american financial services uh software company it's dual headquartered in san francisco and dublin ireland was founded in 2009 by uh two irish entrepreneur brothers john and patrick cullison in 2011 they they got a two million dollar investment from some pretty important people including elon musk and peter thiel who were two of the founders of paypal originally and the company offers payment processing application programming interfaces those are called apis you've ever heard that term for mostly e-commerce websites and mobile applications okay so stripe is kind of right now is the backbone infrastructure to payments on the internet okay so stripe handles stuff almost exclusively via websites so they run the back end so for instance in here if you have instacart salesforce shopify all shopify sites process their payments through stripe okay amazon lyft google all these are are operating within stripes infrastructure on the internet okay so if you sell things on a website stripe is a good option to have for that and here's the reason why their stuff is fully integrated in they have solutions for just about everything they're kind of the secret company probably never heard of but they're running a lot of stuff if you've ever purchased something on uh you know on a shopify site you've probably used stripe and never even never even realized it so they have so much stuff that's there it's totally scalable these guys stripe stripe has a 135 plus currencies worldwide because they have that irish connection they they really scale heavily into europe okay so it makes it super easy to launch new products especially if you're trying to sell in different languages different currencies which is great all these all these apps are terrific for doing global business because what it does is it keeps um you know if you've ever if you ever travel to a foreign country and you're trying to exchange currency right you go to like a change house uh to exchange your currency you don't always get the best deals and usually credit card companies get the best deals because they're doing such a volume and transaction what's nice about this is those those things are handled all for you and it gets back to your account in dollars which is the most important part so you know you're getting optimal exchange rates automatically from it and and there we go so they have these hosted payment pages and this is very simple like even this one you know you can pay with google pay up here but stripe is powering this whole checkout system even though you may be paying with google pay or apple pay or something else down here at the bottom you can see it says powered by stripe stripes just sits in the background and just runs and it runs some of the biggest platforms that we have so if you're in a business where you're you have an online shopping cart and a very robust system or you're selling uh different products and you you definitely want to look at stripe as a potential for you it has fully customized stuff if you want to have a rocket uh you know an animation of a rocket shoot off as as somebody issues a payment you can code that into stripe okay so it gives complete flexibility so whether you're a micro business single person solopreneur great to a multinational company they can all use stripe which is which is really wonderful you can also create custom invoices it integrates with every mobile app that you have so if you have a custom mobile app you've developed for your business stripe can integrate with that also there's there's in-person payments there's something called the stripe terminal that they can do as well so very similar to um to what uh paypal has or anybody that has a terminal or one you buy from your bank stripe can handle that as well and they're they're a giant company which is great okay because of that they have very uh they use um artificial intelligence machine learning plat programs to make sure that fraud is reduced as much as possible okay and maximizing acceptance the most risky transactions that happen online happen when somebody just types a credit card number into a website right because if you think about it you're not there in person to actually swipe that card so if you're in person you have the card in person you get cheaper rates usually as a business owner because fraud's reduced because hey you're there with a card that's one thing to it's one thing to steal somebody's information it's another thing to steal somebody's card right so it's harder to commit fraud using an actual physical card than using just the information online so stripe really works hard to prevent fraud in that aspect okay let's talk about square square's american financial services company headquartered in san francisco california that's a trend right uh silicon valley it was founded in 2009 by jack dorsey and jim mckelvey and launched his first platform in 2010. jack dorsey also founded twitter how about that right so he owns twitter and uh he founded square as well so it's traded on the on the new york stock exchange sq is their symbol and they have over 100 billion in market capitalization rate as of right now square has done some tremendous things in the last couple of years they started out very small and they've just grown and grown so this is uh just some screen captures from their website the future of business is yours to shape they specialize in point of purchase systems you probably use square and maybe you haven't even realized it if you've gone to a coffee shop or a little restaurant or something they have these terminals and sometimes they'll spin the screen around you sign the screen there you go that's probably a square terminal a square integrated terminal so you may be familiar with this square reader here on the right this is how they first got introduced to the market they plugged in your phone and you could swipe a credit card and then take take a credit card in person so if you were at a farmer's market or a restaurant or something like that somebody says hey can i pay you with a card or you're uh you're a cosmetologist you cut hair um people can give you a card or if you're babysitting or whatever they made it really simple and in fact it disrupted the market a little bit because paypal did not have this capability at that time paypal was focusing on just websites they didn't have the ability to take a credit card in person on your device so shortly after square released this paypal had a triangular reader that they were they released that plugged in your phone as well so they still have those readers that you can use there's also a contactless and a chip reader because with the new chips you don't swipe right so you stick that right in and you and you get it there's also the square terminal that is there um and that's for point of sale stuff and then they have square register and square stand you've probably seen these at places and you haven't even realized that you're using square right so square is everywhere and square like i said has made huge inroads they have now they accept every kind of payment touch list phone payments uh apple pay google pay they take it all uh and they do it's very securely and they make it really simple so their interface is great so here's some of the services they have they have virtual terminal right so you can take payments over the phone if you need to instead of a mobile device so like i said if you're um if you're dealing business with somebody and they prefer to call you and give you their credit card number on the phone which some of your customers do and like i said you want to make sure that your customers have the easiest customer experience possible to pay you don't make it difficult for your customers to pay you you don't want to do that make it as simple as possible for your customers to pay a few years ago there was a pizza chain here that started accepting mexican pesos it was called pizza patron and they started accepting pesos why because a lot of their customers were were from mexico right and mexicans that traveled to mexico and live in the united states guess what they have leftover currencies there so they would come in and spend pesos i thought that was amazing and people some people were like that's really weird i said no that's brilliant right make it easy for your customers to pay you right so virtual terminal you can also do gift cards for your business through uh through square i don't know of any other service that does that so you can set up and and sell gift cards they also have a full marketing suite available dashboard and analytics on your whole thing as far as that goes so we said they for a retail point of sale system it manages your inventory how about that same with the restaurant you can manage from counter service run your restaurant you can build and scale a restaurant very easily and they have whole solutions set up for this and then guess what they went into a full business back in so square is now affiliated with an official fdic insured bank right so they handle payroll now time cards for your employees business loans like they're the only service that's offering some of this stuff plus a full bore checking account um there's square checking they even have appointment point of sale system so if you're a uh if you're a stylist and you want to take an appointment you can take your appointments through the square system and schedule payments with it private remote sessions if you're a therapist and you're doing work like this this is this is really wonderful stuff there's also checkout links buy buttons they do qr codes too since since venmo pioneered that it's been easily copied because it's very simple to put your qr code up on a food truck or you know at your chair where you're where you're at your salon click that and then boom you they can send you money make it easy for people to send you money if they use venmo great accept venmo if they use paypal except paypal wherever somebody wants to pay you you want to set these up so that you're you're ready to go and then of course point of sale everything you need for a point-of-sale business they really have okay so what's wonderful about these payment processing systems is they're all here they're all free to set up they all integrate with your bank accounts right so like i said you want to make it as easy as possible for people to pay you don't make the customer shopping experience difficult just like i said when i was trying to fill out that thing for my nephew's kid it took me 15 minutes to to donate 20 you don't want that okay if you're a school and you're trying to raise money it's really easy to give your kids a qr code and say just have your parents shoot this with the phone and donate how easy is that right um when people are ready to buy make the process simple for them okay so what i would suggest best practices for this set up two to three apps okay set up paypal set up venmo set up square get this stuff set up why because it's free and available because your customers may want to pay you through any of these options okay make sure your website is set up to receive payments i had somebody tell me the other day they're like well i'm an accountant why would i need to accept money on my website i said because people want to pay you easier so how hard is it to put a button on your website that says pay and pay me and there's a paypal button issue payment and so if your customer calls and goes hey i owe you uh for my tax returns how do i how do i send you should i send you a check or what like no just go to our website click the button on the top right that says pay me now and to just issue the payment there you go real easy right make it easy for customers i can't stress that enough we like to do business with people that we like to do business with it's an extra bonus if it's easy to do business with them okay you don't want to make it difficult on your customers to give you money make it easy for them to give you money if they want however they want to pay you make sure to get that set up and have that access available when they want to open that wallet and pay you okay so your action plan now for all this so okay mike i got my stuff set up i'm set up with three or four of these platforms this is great i'm now accepting some payments you have to be organized what's really tricky about this is when it comes time for your taxes and your small business you all of a sudden have you're scrambling to pull data from different sources then all of a sudden you're like oh my gosh i forgot to include payments i got via paypal i have to go in there now all these places all report to irs okay so you'll get issued a 1099 for for miscellaneous income that comes through on these things so just keep that in mind you have to be compliant with everything so be organized if you're issuing invoices through uh through paypal or another one of these systems go in print the invoices out so you have a physical record of it so that helps you to be a little more organized so you can you can make sure that you can you can have a record of all your transactions print your invoices this will help your tax person to help you get your taxes done easier and then make sure to reconcile now one of the reasons i recommend having two or three of these services is uh recently i had a transaction that went through paypal and because of fraud prevention paypal sent me a note that said i need a little more information about this payment you received and they wanted me to tell what type of transaction this was fairly invasive right but um i had to say that before i could actually withdraw my money from the account it almost froze my account until the fraud verification went through okay the other thing is you could have a disagreement with the customer which we we all have those right and so if the customer can you know if they paid you via paypal or something they could say they could dispute the charge just like any consumer can dispute a credit card charge right what happens if the customer paid you 800 and you spent a little bit of it what they'll do is they'll just freeze your account you can't take it out until they do an investigation this can last a couple of weeks sometimes i don't want to knock your if you're only using one of these let's say you're just on paypal if you have no other way to take in money if your account is frozen i wouldn't suggest putting more money into it right because that's going to be frozen as well until they do this investigation if that's the case you can switch over to venmo or you can switch over to square you know make sure that you have these available so that you can you can fully move ahead we don't want to hinder your business in any way and if there's any burps or hiccups with this type of stuff away you go i recommend the same thing that you don't have only one bank in in your in your business okay you should have at least a couple of financial institutions you work with just in case there's some what if there's fraud on your accounts you have to close down your system you don't want to be waiting a week before you can transact business right if you have another banking account you can instantly switch over to that you can instantly move money around or whatever that you need to do i had a situation in my own business where i had a uh a company that had committed fraud they were uh i had paid them via check and then they duplicated the check and submitted it five or six times and the only way that i could stop the activity was to close the accounts for for the fraud right and so that like crippled me for a couple of weeks because you have to get all new cards set up you have to get all this all this stuff done i had something recently that happened too i had i had fraud on a personal account and it extended over my bank wanted me to change my business account too luckily i had another financial institution that i could roll over to immediately and and move ahead with that so like i said we want to be organized print all your stuff make sure to reconcile have some of these services available um if you're not familiar with this get familiar with them sign up on these you're you're gonna be pleasantly surprised how familiar people are with pain online now i remember back in the day when it was like oh my gosh do i put my credit card in the computer i'm scared to death this is scary stuff right um if if uh you know we're not there anymore we're there with you know boom i want to pay my buddy for some i can pay him right for my iphone no no no uh no problems right and that's that's great we want it to be easy simple and effective because we want you to run a business as streamlined and effective as possible okay so thank you that was our presentation today our website is extension.unr.edu bizdev if you have any questions go ahead and put them in the chat um and then uh i just want to put a plug in too we just have launched an online virtual classroom and at extension.unr.edu
bizdev if you go there it will it will show our virtual classroom and these are some of our topics that we have it's in spanish and in english so it's bilingual and we hit a variety of different topics in several areas of finance marketing operations management and startup and every week we teach class and english and spanish just like this one and this will be part of our library as well and we have some specialty classes up there as well we have over 120 videos that are up currently you can get on and learn at any time the ones that have the blue backgrounds are uh quick tips and how to's those are usually less than five minutes and then we have full-length classes like this one today those usually have a gray background and we cover like i said a variety of business topics and also we're launching a podcast starting in january that we'll be talking to about very current small business issues and so our whole goal at the small business education program is education we want to make sure that you have all the education you need to make proper business decisions and move ahead because when you do well we do well as a community and as a state and we just want to help business in nevada and help by helping you be better business owners so thank you very much [Music]
2021-11-29 01:09
