How to Accept Online Payments to Scale Faster and Smarterby Sahil Verma SIFIPAY
People are accustomed to doing everything online in today's digital-first world; they share their lives online, shop online, and pay bills online. So, if you want your company to remain competitive, you should allow customers to pay their bills online as well.
When you can collect payments online, your payment process becomes more efficient, faster, and convenient for both you and your customer.
Pros and Cons of Accepting Online Payments
Before we get into how to accept online payments through an online payment gateway, let's take a look at what might be holding you back. You're probably aware of all the reasons why you might want to accept payments online. They are convenient for both your clients and you.
Automating the process of sending invoices and collecting online payments relieves you of a lot of work and allows you to scale your business more easily. You also get paid faster. Digital payments clear quickly and eliminate the need to wait for checks.
Cons of accepting payments online
So, what's stopping you from accepting payments online? Here are a few possible drawbacks:
Technical issues. Payment processing software, like any other piece of technology, has bugs from time to time. Depending on the technical issue, you may be temporarily unable to accept payments. Bugs are usually fixed quickly, but they can cause some inconvenience in the meantime.
Potential for fraud. Customers may use fraudulent information to pay their invoices because you cannot physically see the payment method (for example, a stolen credit card). There have also been data breaches in which customer information, such as credit card numbers, has been accessed.
Fees. Some online payment services charge fees for payment processing. Depending on which payment processor you use, processing payments online may be more expensive than, say, cashing a paper check.
These issues are becoming less of a concern as online payments become more common and technology becomes more sophisticated. Clients are increasingly expecting to be able to pay online.
What Do You Need in Order to Accept Online Payments?
You'll need to set up a payment service provider once you've decided to accept payments online. You must decide what types of payments you will accept and how you will collect them. Finally, you must communicate all of this to your customers.
Step 1: Set up a payment service provider
To make it simple to accept payments online, your payment service provider should provide all of the following:
The payment gateway serves as a conduit for communication between your client or customer, credit card company or bank, and merchant account. It provides customer-facing payment technology and ensures that all data is encrypted and secure and that transactions are authentic.
To process online payments, the payment processor integrates with your website and/or invoice system. It handles credit and debit card transactions and transfers funds from the customer's account to yours.
The funds from your credit card or debit card payments are held in your merchant account. Most of the time, you'll need it to get paid online. A merchant account can be obtained directly from your bank, but when you sign up for payment platforms, merchant accounts are included.
Step 2: Decide the types of payments you’ll accept
To choose the best merchant account and payment processor for your company, you must first decide what types of payments you will accept. Credit cards and digital wallets are examples of this.
Step 3: Decide how you will accept payments
Depending on your business model, you may want to provide your customers with more than just a method of payment. Typical payment methods include:
Invoice payments. Your customers can pay by clicking on a link embedded in the digital invoice you send them.
Recurring payments. You charge clients automatically for recurring bills or subscriptions, eliminating the need to send an invoice that requires immediate attention.
Mobile payments. Your customers can pay with their phones or tablets. Mobile payments are ideal for customers who want to pay in person but in an unobtrusive manner.
Online shopping carts and order forms. This is the online equivalent of in-person transactions.
Step 4: Let your customers know
Once your online payment system is up and running, you must notify customers of their new options. Some ideas for spreading the word include:
Sending a mass email to all clients
Including a note/instructions on future invoices
Including a "payment options" section on your website or in your FAQ
Having a dedicated customer service email address can also help you answer any questions from your clients.
3 Major Types of Online Payments
You can get paid online in a variety of ways, some of which are more convenient than others for both you and your clients. Here are a few options for online payment processing:
Electronic funds transfer or bank transfer
Electronic funds transfer, also known as bank transfers, is a method for people (and businesses) to send and receive money over the internet. ETFs, in particular, enables customers to send money electronically to a specific recipient—in this case, your company.
Debit card and credit card payments
Around the world today, credit cards are the most commonly used method of online payment, closely followed by debit card payments. Here are a few reasons why accepting credit card payments makes sense:
It's a well-known method of payment.
It is simple to set up.
It's convenient for both you and your customers: You can accept payments through the best online payment gateway as soon as they are made, and your customers can pay with just a few clicks.
Mobile payments and digital wallets
To pay without a credit card, mobile payment apps can be linked to all major credit and debit cards (and sometimes bank accounts). Mobile payments could include the following:
Digital wallets can be used at POS terminals or online.
Peer-to-peer (P2P) apps allow you to send and receive money in an informal manner. (These payments do not require a merchant account.)
SMS payments enable you to be paid via text message by using a text-to-pay service.
3 Things to Consider When Choosing Online Payment Options For Your Business
Clearly, there are numerous methods for accepting online payments from your customers. So, how do you know which is the best fit for you?
When selecting an online payment gateway, there are several factors to consider, including:
What types of payments must you accept? Before you can decide which online payment option is best for your company, you must first consider the types of payments you will need to process. Do you want to provide your customers with mobile payment options? Do you require a shopping cart for your website? Do you want to be able to email invoices? Consider what you require from your online payment processing service—and then choose accordingly.
What are your customers' preferred payment methods? You may have your own ideas about how you want your customers to pay you, but in the end, you must consider how your customers want to pay you. Inquire with your customers about the online payment options they'd like to see from your company, and then select a payment gateway that provides those options.
How much money are you willing to spend on payment processing? Some payment gateways charge more than others. So, before you choose a gateway, think about the fees and how they will affect your budget.
Created on Jul 25th 2022 07:33. Viewed 86 times.