How to Set Up Online Payments for Your Grooming Business

Cash-only grooming businesses still exist—but they’re increasingly rare. Clients expect to pay with cards. Some prefer to pay before they arrive. Others want to tip without carrying cash.

Setting up payments doesn’t have to be complicated. This guide covers exactly what you need to accept payments professionally and confidently.

Why Accept Card Payments

If you’re still cash-only, here’s what you may be losing:

Lost Clients

Some people never carry cash. If you don’t take cards, they’ll choose someone who does.

Higher Tips

Studies consistently show people tip more on cards than cash. The psychological friction is lower.

Easier Bookkeeping

Digital payments create automatic records. No counting cash. No guessing totals. No extra bank runs.

Faster Checkout

Tap or swipe takes seconds. Counting bills and making change slows things down.

Professional Image

Card terminals signal a legitimate, established business.

Yes, processing fees (typically 2.5–3%) are real—but they’re simply part of operating a modern service business.

Choosing a Payment Processor

Several options work well for grooming businesses.

Square

The most popular choice for small service businesses.

• Fees: 2.6% + $0.10 per swipe/tap
• Basic reader: Free
• Strong integrations with grooming software

Why it works:
Simple setup, reliable hardware, transparent pricing, and a strong ecosystem.

PayPal Zettle

• Fees: 2.29% + $0.09
• Backed by PayPal

Why it works:
Competitive rates and strong integration with PayPal invoicing.

Stripe

More commonly used for online payments than in-person transactions.

Why it works:
Excellent for online billing, subscriptions, and customized setups.

Through Your Grooming Software

Many grooming platforms offer built-in payment processing or seamless integration.

Why it works:
Everything lives in one system—less juggling between apps.

Recommendation

For most groomers, Square is the path of least resistance. Setup is quick, hardware is dependable, and fees are straightforward.

Setting Up Square (Step by Step)

Step 1: Create an Account

Visit squareup.com and sign up.

You’ll need:

• Email address
• Business name
• Business type (select services or pet services)
• Bank account for deposits
• Social Security number or EIN

Step 2: Verify Your Identity

Square will ask verification questions. This is required for all payment processors.

Step 3: Order Hardware

Options include:

• Square Reader (magstripe) — Free, swipe only
• Square Reader (contactless + chip) — ~$50, handles tap and chip
• Square Terminal — ~$300, standalone device with receipt printer
• Square Stand — ~$150, turns an iPad into a register

For most groomers, the $50 contactless reader is perfect. The Terminal is ideal if you want printed receipts without using your phone.

Step 4: Download the App

Install Square Point of Sale on your phone or tablet and log in.

Step 5: Set Up Your Services

Add your grooming services and pricing:

• Full Groom Small — $55
• Full Groom Medium — $70
• Nail Trim — $15
• Add-ons — etc.

This speeds up checkout and improves reporting accuracy.

Step 6: Run a Test Transaction

Process a small payment using your own card.

Verify:

• It processes successfully
• Funds arrive in your bank account (first deposit may take 1–2 business days)

Accepting Tips

Clients want to tip. Make it effortless.

Enabling Tips in Square

1. Go to Settings
2. Select Checkout
3. Turn on Tips
4. Choose preset percentages (15%, 20%, 25%) or custom amounts

Tip options appear on-screen before payment completes.

Cash Tips

Still common. If appropriate for your business, keep a visible tip jar.

Tip Tracking

Processors track tips separately, which helps with payroll and tax reporting.

Taking Deposits and Prepayments

Deposits protect your time—especially for new clients or high-value appointments.

Using Square Invoices

1. Create invoice for deposit amount
2. Send via email or text
3. Client pays online
4. Collect balance at appointment

Using Grooming Software

Many systems allow:

• Card on file
• Automatic no-show charges
• Prepayment requirements

Common Deposit Policies

• 50% deposit for new clients
• Full prepayment for appointments over $100
• Card on file required for booking

Be clear about policies in confirmations. Surprises create friction.

Invoicing

Sometimes payment happens after service—especially for mobile groomers.

Square Invoices

Include:

• Service description
• Amount
• Due date
• Payment link

Clients click and pay online.

Best Practices

• Send invoices same day as service
• Follow up within a few days if unpaid
• Set clear late payment policies
• Use automatic reminders when possible

Managing Refunds

Mistakes happen. Handle them cleanly.

Full Refunds

Process through your payment system. Funds return in 3–10 business days.

Partial Refunds

Specify the exact amount to return.

Refund When:

• You made a clear mistake
• There was miscommunication about pricing
• Client dissatisfaction is legitimate

Don’t Refund When:

• They simply changed their mind
• Behavior-related limitations caused the outcome
• The service matched what was agreed upon

Always document refund reasons.

Handling Chargebacks

Chargebacks occur when clients dispute charges with their bank.

Preventing Chargebacks

• Communicate pricing clearly before service
• Issue receipts every time
• Use signed service agreements
• Respond quickly to concerns

If You Receive One

1. Processor notifies you
2. Gather evidence (photos, agreements, communication)
3. Submit response
4. Bank decides outcome

You won’t win every dispute—even if you’re right. Plan accordingly.

Cash Flow Considerations

Timing matters.

Square Deposit Timing

• Standard deposit: Next business day
• Instant deposit: Minutes (with fee)

Avoid relying heavily on instant deposits—fees add up.

Best Practice

Use a dedicated business bank account. It keeps bookkeeping clean and professional.

Security and PCI Compliance

When handling cards, security matters.

What Your Processor Handles

Square and similar providers are PCI compliant. Using their systems keeps you covered.

Your Responsibilities

• Don’t write down card numbers
• Don’t store card info in spreadsheets
• Secure your hardware
• Use strong passwords
• Limit system access

Fraud Awareness

Be cautious if:

• A card repeatedly declines and client pressures you
• Payment requests seem unusual
• Something simply feels off

Trust your instincts.

Reconciliation and Bookkeeping

Payments must align with your records.

Daily Check

• Services delivered match transactions processed
• Tips recorded
• Deposits hitting bank

Monthly Review

• Total payments received
• Processing fees
• Refunds
• Chargebacks

Accounting Integration

Square integrates with QuickBooks, Xero, Wave, and similar platforms. Connect your systems to reduce manual entry.

Frequently Asked Questions

What processor has the lowest fees?

Most charge between 2.3%–2.9%. The difference for most grooming businesses is small. Prioritize reliability and usability over minor fee differences.

Should I charge extra for card payments?

You can in many states—but it creates friction. It’s usually better to build processing costs into your pricing.

What if the card reader fails?

Have backups:

• Manual entry (higher fee)
• Invoicing
• Venmo or PayPal as fallback

Equipment rarely fails—but preparation prevents stress.

Do I need a business bank account?

Not legally required—but strongly recommended. It simplifies taxes, bookkeeping, and financial clarity.

How do I handle employee tips?

Track them digitally. Distribute based on your policy (individual or pooled). Report all tips appropriately for tax purposes.

Setting up online payments isn’t complicated—but it’s essential.

Accepting cards increases convenience, improves cash flow, boosts professionalism, and supports business growth.