The benefits of offering online payments
Did you know the easier it is for people to pay you, the faster you will get paid?
So, how easy do you make it for your customers to pay you?
One of the best things about the digital world is the ability to pay online. And businesses that offer online payments get paid faster.
If your customers can make an instant online payment, they’re likely to pay you more quickly – and they’ll appreciate the simplicity too.
What are online payments
In simple terms, online payments are the methods you offer so your customers can pay you on-line.
Different online payment methods include services like Stripe or Paypal (known as an Automated Clearing House or ACH), credit and debit cards, online wallets like Apple Pay and Google Pay, and recurring payments through direct debit (either from a credit/debit card or bank account).
The right set of payment methods not only offers your customers payment flexibility and convenience, they also reduce the chance of fraud.
It’s important, however, that you choose a provider that can integrate with your accounting software.
What are the costs of online payments
Most online payment service providers won’t charge any set-up fees. However, they will charge transaction fees.
Transaction fees usually range from 2-4% of the payment amount for credit cards. Direct debit transactions are usually a fixed amount - often under $2 per transaction.
On large-ticket items or services, some businesses don’t like to offer online payments. This is because the fees can add up. However, if you include these fees in your profit calculations and offer online payments for these large-ticket items, that point of difference may be the difference between making the sale or not.
What are the benefits of online payments
At the end of the day, businesses that set up online payments get paid faster.
Offering online payments can be a point of difference for your business (especially if you have big-ticket items or services).
Online payments allows you to reach more customers globally.
Offering the right mix of payment options can increase the chances of a purchase.