The number of best online payment services for Small Business (and Online Business) continues to grow, so selecting the most suitable payment gateway for business can be daunting.
Small businesses, in particular, often have to sort through all of the options available to them and do a cost-benefit analysis for each payment method to understand if it’s a viable option for their business.
While credit card has been the standard best online payment options for small businesses & most eCommerce businesses for some time, the introduction of many mobile payment solutions has further complicated things; many of them require proprietary hardware, devices, terminals, etc.
Providing these various options adds convenience for your customers but can also add substantial costs that eat away at your bottom line. While it’s essential to offer multiple payment options to make it easy for your customers to pay, you should also work to select the best options for your business specifically.
Planning for your business needs now will pay off down the road. Consider other systems that might help you reduce costs, especially if you are a virtual business. VOIP systems, for example, is a way to reduce costs and can be used with many computer systems. Just be sure you have strong cybersecurity in place to handle any potential attacks.
If you are just starting out accepting payments online and you are looking for the best payment solutions, we’ve got you covered. This article will walk you through various ways to accept payments online.
Best Online Payment Services For Small Business
1. Credit Cards
Let’s start with the basics. Every business must be able to accept credit/debit card payments. They are simply too widely used to ignore.
The three types of credit card payments include:
- In-person payments
- Online payments
- Mobile payments
The type of business you have will dictate which payment methods you need. If your business is solely online, you’ll probably only need an online payment system. However, if you sell services online and in person, you’ll probably need to mix and match systems to offer all three payment options.
After you’ve determined which types of payment solutions you need, the next step is to figure out which Payment services you will use to process your payments. Luckily, services like Paypal, Stripe, and Square are the best Payment Gateway options for businesses starting out. Those services make getting started easy and will provide you with the hardware you need.
That said, if you need to process more than credit cards, you may want to look at other providers with wider capabilities.
2. ACH Payments and eChecks
ACH payments and eChecks are the other best online payment services for Business.
If your business deals with many other companies or vendors, you’re likely to need to accept other forms of payment. For many companies, paper checks are a hassle and take too long to process, so other forms of electronic payments that can be frequently used in B2B transactions need to be introduced.
ACH or automated clearinghouse is the method used to transfer money electronically between banks. ACH payments only work within the United States (In India it’s a NEFT\RTGS).
Think about how your business model functions and determine whether this is a necessary payment option for you. Do you have customers you are repeatedly billing, are you already handling payments that can be converted to ACH?
The next step is to find the right ACH provider. Look for a partner with suitable options for you and your needs and one that doesn’t suck you into a long-term contract. Understand the fees associated with the provider and make sure the process is easy to set up for both you and your customers.
Lastly, make sure you understand all of the costs and fees associated with that provider and read the fine print to ensure you aren’t paying unwanted fees/costs. The process for setting up checks is similar to that of ACH payments.
Echecks are an increasingly popular method of payment for many businesses because they are cheap, safe, and easy to use. On average, checks only cost about 1% in processing costs. They are simple to use – normally only requiring that a digital check be filled out in the same way a physical check is. And they are safe to use with many vendors offering fast check verification and additional fraud prevention tools.
3. Mobile Payments
While we mentioned mobile payments as a method for accepting credit cards, mobile payments can be handled without credit cards.
Wondering, what is the best payment app for small business?
Payment systems like Apple Pay, Google Pay, PayPal, and Shopify allow customers to pay from within that system.
If you have a smartphone, you can pay directly from your Apple Pay or PayPal account and have the money debited from your bank account and paid directly to the merchant’s bank account.
As a business owner, accepting these mobile payments makes it easier for customers to transact and buy from you.
Young businesses must realize that new payment options are coming online every day. In addition to the established companies offering payment services, some newer companies provide services geared for new businesses, with annual fees and lower transaction fees than traditional options.
In the end, you want to avoid making basic mistakes. These five areas can cause headaches if you don’t grasp how your provider will handle each.
- Ensure the service doesn’t cost more than you can comfortably afford with your business.
- Read the fine print to understand their entire fee structure and look out for hidden fees.
- Understand how they treat merchants with disputes and chargebacks; you want to be treated fairly.
- Confirm they understand mobile payments. Not everyone does yet.
- If you deal with recurring payments, be sure their system easily allows for subscriptions and other regular charges.
Conclusion: Best Online Payment Service Business
If you want to know best payment solutions for your company, take the time to do the proper research.
Understanding your current and future needs will ensure you pick the best online payment services for small business for your business.
This post was written by guest Author: Katie Tejada is a writer, editor, and former HR professional.
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