Do you run a small business that accepts online and offline payments through the internet? Sixty percent of respondents claimed that the United States is going towards becoming a completely cashless society. People are avoiding cash even more since and after COVID-19.
Small business owners may have found it challenging to accept major credit cards or online payments in the past owing to the high processing costs, but it is now possible thanks to modern technology. Considering that over 50% of clients utilise major e-commerce platforms, providing other payment methods is crucial for the future of your company.
In an effort to maintain a successful business, you may find a guide to help small business owners learn about starting online transactions here.
Online Transactions for Small Businesses: 5 Must Know Things
Credit Cards and Debit Cards
Credit and debit cards are two of the most widely used payment methods, both offline and online. The processing and transaction expenses are two of the first things you should take into account when accepting credit card payments. VISA charges reduced processing fees compared to AMERICA EXPRESS, which has higher transaction expenses. Fraud detection for payments to businesses that handle credit card payments is another issue.
The best way for your small business to accept credit card payments depends on your business’ needs and how many credit card transactions it processes monthly. Small businesses are need to make specific tool selections based on these factors.
Point-of-Sale (POS) Software: Many small companies use this option since they have the option of using a mounted swipe/chip/tap card terminal or an attachment to their smartphone to read the customer’s card.
Virtual Terminal: A virtual terminal enters the credit card number into a computer or mobile device during the checkout process.
Card Reader: Because they may utilise a mounted swipe/chip/tap card terminal to read the customer’s card or attach a card reader to their smartphone, many small businesses choose this option.
Automated Clearing House Processing
A bank account to bank account electronic transfer is done using the Automated Clearing House (ACH) Network. Greater security, easy setup using the customer’s bank account information, and a quick and convenient means of initiating and accepting transactions are all features of ACH. Banks have transactional thresholds they won’t exceed in a day or month without paying fees, which is the only drawback.
Repeated Charges or Subscriptions
Recurring billing software eases the hassle of submitting transactions on time.
However, before you can set up automated invoicing, you must first get the client’s approval and arrange a payment schedule. You can set up subscription-based billing after approval. During the checkout process, a virtual terminal inserts the credit card number into a computer or mobile device.
Card Reader: Many small businesses opt for this option because they can use a mounted swipe/chip/tap card terminal to read the customer’s card or attach a card reader to their smartphone.
Online Payment Devices and Tools
The top three payment methods are Square, Stripe, and PayPal.
PayPal: Using PayPal to accept credit and debit card payments online is easy. The purchasing process is made simpler for customers when they use PayPal for online, offline, or mobile transactions.
- Stripe: Small business owners may use a single piece of software from anywhere in the world to accept payments in person or online with Stripe. It provides fraud defence with Stripe Radar. Each successful transaction carries a fee of 2.9% plus $0.30.
- Square: Square offers choices through their point-of-sale (POS) software, which may be utilised in-person or online using a mobile device, including credit card transactions. Chip, registers, terminals, readers, and stands are among the hardware options.
Simply wave your smartphone or smartwatch in front of a designated device, Near-Field Communication (NFC) technology, and do it using Apple Pay and Google Pay. All you need is an NFC-enabled reader.
The more payment options available, the more customers small businesses will attract. As our society moves further away from utilising cash for routine purchases, it is becoming more and more crucial. More sales are generated by adjusting to consumer wants, and fortunately you have a number of solutions at your disposal.