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Author Topic: How do you pay vendors?  (Read 355 times)  

Offline Matt.Banks

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How do you pay vendors?
« on: July 08, 2017, 06:25:07 AM »
I'm assuming paypal is the most popular way? I do not currently have a paypal account and I'm thinking of buying some pre-made covers this weekend. If I were to register for paypal, the account wouldn't be ready in the time frame I'd need so that leaves me with debit/credit card, or perhaps one of those Visa gift cards. What's the most secure way?

And for paying cover artists/editors, I'd need to send them a W-9 after a certain threshold, that would have my SSN on it right? Makes sense to have a TIN before then. Something to be said about having things in place before you need them.


Online Melody Simmons

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Re: How do you pay vendors?
« Reply #1 on: July 08, 2017, 06:36:16 AM »
Hi Matt

Paypal is pretty essential for any type of online business.  It is the most secure method to pay too since you can request a refund and open a dispute if you you do not get your goods.  Plus you do not have to share valuable credit card info with strangers.

As for taxes, I assume you are in the USA.  If you hire/pay a freelancer that is not in the USA you do not submit the usual W-9 tax forms.  Just mentioning this because I know many of the popular cover designers (like Damonza for example) are not in the USA.
« Last Edit: July 08, 2017, 06:46:50 AM by Melody Simmons »

Offline MClayton

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Re: How do you pay vendors?
« Reply #2 on: July 08, 2017, 06:37:43 AM »
If your vendors have a Paypal business account, they can send you an invoice that allows you to pay securely with a credit card - through Paypal - without opening a Paypal account. It's the 1099 you'd send to vendors, and yes, it would have your TIN on it. The W-9 is what the vendor fills out in order to ensure you have their correct information to send the 1099.

 Edited because I was getting too complicated way too early in the morning.  ::)
« Last Edit: July 08, 2017, 06:43:20 AM by MClayton »

Offline Rick Gualtieri

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Re: How do you pay vendors?
« Reply #3 on: July 08, 2017, 07:59:11 AM »
Paypal is a must have.  I'm fine with whatever terms a vendor wishes to use with regards to payment schedules, but being able to pay via paypal needs to be there.  I am way too lazy to even contemplate where I've hidden my stamps to start writing people actual checks.  :)


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Offline EllieDee

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Re: How do you pay vendors?
« Reply #4 on: July 08, 2017, 08:14:10 AM »
Not to beat you over the head with this, but you really need some kind of online payment system to cover self-publishing expenses (covers are just the beginning).  Paypal is the biggest player out there, although I have a dim memory of running across some proofreaders that would also accept Google Wallet.  If you absolutely need those covers now and the vendor agrees to it, I guess the gift card sounds like the safest option. 

Offline EB

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Re: How do you pay vendors?
« Reply #5 on: July 08, 2017, 08:38:31 AM »
PayPal.
Always pay as a business transaction, never pay by friends & family (sending business transactions via f&f is a PP TOS violation).  Steer clear of vendors who state that you must pay extra to cover pp fees, also a PP TOS violation.
Otherwise, PP is a popular option.

Offline _Sheila_

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Re: How do you pay vendors?
« Reply #6 on: July 08, 2017, 08:59:24 AM »
Another PayPal user. 

I find it convenient.  I can pay my vendor within moments of receiving an invoice.  At the end of the year, taxes are much easier because all the information is available in one place.

Sheila
               

Offline notjohn

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Re: How do you pay vendors?
« Reply #7 on: July 08, 2017, 09:10:46 AM »
Since tax reporting has come up, just to clarify: the form to report payments is 1099-MISC, easily done on the TurboTax website. You don't have to file for payments to an individual that total less than $600 in a year, though of course there's no penalty either for doing so just to CYA. And you don't have to file a 1099 for payments to an established business (buying a computer from Dell, for example), and many designers are (and all should be) established businesses. It's the vendor's responsibility to pay his or her taxes. Just be sure you print and keep the receipt.

As others have said, PayPal will allow you to pay by swiping your credit card. That is certainly preferable to giving the credit card information by phone to someone you've never met -- and you'd never email that information to anyone!

Good luck! -- NJ
« Last Edit: July 10, 2017, 06:11:21 AM by Betsy the Quilter »
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