The statistics point to what we already know: people are spending time online more than ever. Even traditionally straightforward businesses are changing. For example, 35% of people are now buying groceries online. Simply put, consumer habits are changing and businesses must find a way to adapt. Online payment processing is one of the best ways to do this. Here’s what you need to know.
The Benefits of Online Payment Processing
A paper trail is difficult for two reasons. First, it takes time. You have to send bills through the postal service, wasting several days. From there, you have to wait for your customers to send a payment back to you. All of this adds up and it could be weeks before you receive a payment. Second, this method makes it difficult to track the current financial health of your business. Papers may be lost in the mail or tossed in the wrong pile, leading to missing information.
Online payment processing allows for a seamless process that is more convenient for both you and customers. Your customers don’t have to pay for postage, and you reap the benefit of receiving payments at lightning speed. Plus, automation makes it possible to send reminders and receipts, so you’re always organized and don’t have to waste time chasing payments.
With the right software solution, all of your payment information will be securely stored in one convenient location for easy bookkeeping.
5 Online Payment Options
With so many online payment processing services, it can feel overwhelming to sort through your options if you’re a business owner. That’s why we decided to round up details about the benefits of each of them and how they work.
Here’s what you should know. You can also learn more about accepting payments here.
1. Online credit card payment processing
The most basic and popular way of online payment processing is to accept debit and credit cards. Many people enjoy using this method of payment because of the rewards and incentives provided by credit card companies. The more they use their card, the more points they can rack up to go towards travel, gift cards, and even cash back.
According to one recent study, 42% of people prefer to pay using a debit card, followed by 29% of people who prefer a credit card.
To offer online credit card payment processing, you must decide between a dedicated merchant account or aggregated account. A dedicated account is specifically for your business, while aggregated accounts (such as those provided by PayPal) use a single merchant account to provide credit card processing for a larger group of companies.
There are differences when it comes to security and processing times, which means it’s important to research the best option for your business before making a choice.
2. Process ACH payments online through eChecks
For customers looking to avoid credit card fees, you’ll want to allow them to set up ACH payments online. The customer will simply input the information from a paper check (routing and account number, name, amount, and authorization) into an online payment form. The payment will then be processed electronically without the paper check. This is why it is commonly referred to as an eCheck.
ACH processing is a safe, secure, and predictable method of online payment processing. It is governed by the National Automated Clearing House Association and often has transaction fees that are much lower than credit cards.
3. Online invoice payment processing
Invoices are incredibly important for many service-based businesses. However, no one wants to receive a paper invoice via snail mail anymore. By sending a click-to-pay invoice by email, you can potentially receive a payment within minutes.
Online invoice payment processing is convenient for customers because they can pay bills online and receive a receipt right away. For many people, concerns about saving on paper and postage has made this an easy transition.
With a streamlined experience, your customer database will store payment records securely and also allow for accurate financial reporting. When your customer makes a payment, the invoice is marked as paid automatically. You can even schedule reminders for outstanding invoices that are approaching their due date.
4. Online payment forms
If you’re searching for simple and straightforward online payment processing services, an online payment form can help. Customers can go to your website, create an account, and quickly make a payment online. Returning customers can even save payment information for the future. Whether they prefer using a credit card or eCheck, the process is easy with an online payment form.
On your end, you’ll look for an online payment tool that includes a payment form you can customize to match your branding. Plus, you need secure processing to ensure you keep all of your customer financial information safe. From there, you should also have access to customer account storage. This will make it easy for you to access important customer details at any time.
5. Recurring billing options
The ability to “set it and forget it” is valuable for you and your customers. Monthly services like gyms and daycare centers should always take advantage of recurring online payment processing.
Your customers will be happy to have one fewer thing to worry about every month. Whether they want to use a credit card or schedule a direct debit from their bank account, the money will automatically be deducted every month. You can even schedule reminder emails right before the money is charged.
For you, the benefit is predictable revenue. This method almost guarantees timely payments every month.
Online Payment Processing Services: How PaySimple Can Help
Are you ready to offer more online payment options? PaySimple can help.
Every feature we’ve discussed in this post is available to you in one simple payment software system. PaySimple is an integrated solution for credit card payments, ACH, recurring billing, click-to-pay email invoicing, and more. Plus, you’ll have access to financial tracking that helps you make the right decisions for your business.
At PaySimple, we know how hard you work to keep things running smoothly. That’s why we offer small business payment options for one low monthly price. No contracts and no cancellation fees. When you partner with us, you’ll also have an outstanding team of customer service representatives standing by. You never have to worry about questions or concerns that come up along the way.