One of the greatest benefits of online shopping is the ability to make instant, hassle-free payments. Just enter your details, click, and you’re done. When your customers can make instant online payments, they’re more likely to pay quickly and will appreciate the simplicity of the process.
Payment Methods
Online payment methods include credit and debit cards, ACH (Automated Clearing House) services like PayPal, and recurring payments through direct debit. These payments are handled by merchant service providers—specialised companies that process transactions on your behalf. Some focus on credit and debit cards, while others specialise in ACH or direct debit.
Select a provider that integrates with your accounting software, and you can add a simple payment button to your invoices.
Cost Considerations
While merchant service providers typically don’t charge set-up fees, they do charge transaction fees. These fees range from 2-4% of the invoice amount for debit or credit cards, and under $2 per transaction for direct debit. These costs should be factored into your profit calculations, which smart accounting software can handle automatically.
Because credit and debit card fees can add up, many businesses choose not to offer online payment for invoices over a certain amount.
Advantages
Businesses that accept online payments often receive payments faster. Although not every client will pay immediately just because the option is available, it generally speeds up the average payment time.
An added benefit? Customers appreciate the convenience of online payments, making it a strong selling point for your business.
Ready to take advantage of online payments? Get expert advice and set-up support from our accounting team.
