Invoices with an option to ‘pay now’ (via credit card or other online payments methods) get settled 50% faster.
Invoices with an option for clients to pay using a credit card via online payments get paid so much faster. Speeding up payment will improve your businesses growth, minimise late payments and vastly improve your cashflow. Imagine what you could do with that extra cash!
Here are just a few reasons why you should consider connecting to an online payment gateway:
1. Clients can make payments 24/7, 365 days a year
Late payments can bring small businesses to a halt. Not being able to pay bills, pay the team or expand the business is extremely demoralising for any business owner. A payment gateway gives your client the ability to pay instantly, whilst on the move and securely. If you make it easy for your clients to pay, then your invoices will be paid twice as fast.
2. Cash and cheque payments are becoming few and far between
More and more people are opting for cashless payment options. By selecting a payment gatewayy, your client has the choice to pay using their credit card, bank transfer/ACH or mobile payments such as ApplePay or GooglePay.
3. Mobile payments are the future
Clients can complete their purchase without entering a single piece of information or having to enter a credit card into a POS machine such as Square. This is incredibly important for the client, but also for merchants as they try to optimise the payment experience.
If you’re looking for touchless or contactless payments, this is the way to go. Your customers can pay from their phone or web and there is no need to process a physical card.
4. Online payments are quick and easy to set up
There’s generally no cost to setting up a payment gateway however there is a charge for each transaction. This charge is somewhere between 0.9% and 2.9% of the invoice value, depending on the payment gateway you select.
Some accounting applications have the ability to automatically match the fee to the payment and add it to your expenses so you can keep on top of your cashflow. There’s a quick set-up wizard to walk you through the process and there are no monthly costs.
5. Get paid in multiple currencies
Small businesses and entrepreneurs are doing more business globally so they need to have the option to receive payments in multiple currencies. A payment gateway provides this flexibility by offering your client the choice to pay in a currency different to your own. And a few apps allow you to invoice in the currency of your choice.
Online payments are seamless when used with online invoicing.
You can link your preferred payment gateway to your accounting software. When you send your online invoice the route to payment is quick and easy for your client.
- The client opens the invoice
- Then clicks on the preferred payment option and enters their card details
- You will receive an instant notification that the payment has been made.
It’s super fast and convenient for both you and your client.
Online payment services are the way to go, especially in the new world, where face to face payments have become more difficult. Having an online payment gateway speeds up payments and provides the client with an easy and convenient way to pay. Just think what you can achieve when you have more cash flowing through your business, the sky’s the limit!
Take a look at the options available as it may take a load off your shoulders.
Online Payments – understanding the main terms used
Before getting started, here are just a few terms you will encounter when settings up an online payments system.
- Merchant account. A merchant account is a type of bank account that allows a customer to receive payments through credit or debit cards. Many processors (such as the ones listed below) act as both the merchant account as well as the payment gateway.
- Payment gateway. A payment gateway allows merchants to securely pass credit card information between the customer and the merchant and also between merchant and the payment processor. The payment gateway is the middleman between the merchant and their sponsoring bank.
- Payment processor. A payment processor is the company that a merchant uses to handle credit card transactions. Payment processors implement anti-fraud measures to ensure that both the front-facing customer and the merchant are protected.
- KYC. Know your customer (KYC) is the process that a business must go through in order to verify the identity of its clients. Many financial organisations are governed by a regulatory body, which states that each and every organisation has to be fully verified. KYC regulations are in place to protect both you as a customer, and the bank that you are using.
- PCI DSS compliance. PCI compliance is when a merchant or payment gateway sets their payment environment up in a way that meets the Payment Card Industry Data Security Standard (PCI DSS). The PCI DSS standard was created by the Payment Card Industry Security Standards Council to increase security of cardholder data and to reduce fraud.