Online Payment Solutions
Whether you’re in retail, online or offering an experience within your own application, your customers will want to be able to purchase easily and securely. Providing this capability not only delivers more value to your users, but it can also organically increase revenue for your business.
With that in mind, it’s crucial for small businesses to offer a variety of online payment solutions that are convenient for their customers. This can include everything from automated follow-up emails to scheduled invoicing. It’s important to find a solution that fits your needs and offers fees that work into your budget.
The first step in making payments convenient is ensuring that your online business has the right payment processor. There are dozens of these on the market, with varying features, fees and integration abilities. When choosing a processor, be sure to find one that offers fraud protection, customer support and accounting integrations for an easy-to-manage experience.
A popular option is Square, which has been a long-time staple in the payment industry. It’s affordable, offers a variety of features and integrates with many other tools like CRMs. While it does require an upfront investment in hardware and a card reader, the monthly fee is minimal and covers most transaction types.
Another option is PayPal, which allows you to accept online payments, in-person payments and debit cards. It offers a variety of pricing plans, but the most attractive is the one that gives you a flat-rate processing fee for all transactions. This is especially valuable for ecommerce businesses that have customers from all over the world.
Some small businesses may require costly or frequent payments, such as home contractors or childcare providers. These businesses can benefit from a direct debit solution such as GoCardless, which is an ACH payment processor that automates bill payments from your clients’ bank accounts. It’s a quick and convenient option for both the client and the business, reducing manual payment admin and eliminating late payments.
DepositFix allows you to integrate with HubSpot, so that any payments made through a HubSpot form will automatically be sent to Stripe or PayPal for processing. It also enables you to create workflows that send follow-up emails, receipts or even requests for reviews after payments are processed. This provides an additional layer of convenience for your customers and makes it easier to build trust with your brand.
Convenience Fees
If you’re a small business owner who wants to take advantage of convenience fees, there are some things you need to consider. While this option can help you lower your credit card processing costs, it may not be a good choice for your customers. Many people resent paying extra to pay with a non-standard method, and it could deter them from buying from your business in the future.
To be legal, convenience fees must be clearly disclosed to customers before they complete the transaction. This is important because customers who are surprised by these fees can file complaints with their credit card companies and potentially cause damage to your reputation. Additionally, you must abide by the rules set by your credit card processor regarding convenience fees, which can be different than surcharges, so make sure to do your research before adding a fee.카드깡 사이트
Convenience fees are typically a flat amount or a percentage of the sale. They’re often added to payments that would be traditionally made with cash or check, such as tuition fees, government fees (like motor vehicle registration), and utilities. However, you shouldn’t charge a convenience fee when there is another way for customers to pay that doesn’t require them to go out of their way, like by dropping a check in the mail.
The reason why is because you’re essentially charging the customer for a service that your business already provides, and you shouldn’t profit from this. It’s also a good idea to keep your convenience fees low to avoid alienating your customers.
It’s also a good idea to be mindful of your competition when it comes to convenience fees. If they’re not using them, you might be able to gain an edge over them by offering more payment options that don’t come with a fee. You should also be aware of any state laws regarding convenience fees and surcharges that you may be obligated to follow. To ensure that you’re complying with all the rules and regulations, work closely with your credit card processor. This will help you be sure that you’re not violating any guidelines set by your card brands, which could lead to fines or even termination of your merchant account.
Buy Now Pay Later
Buy now pay later (BNPL) payment methods allow customers to make a purchase and then finance it with interest-free installment payments. These types of financing are gaining popularity, especially among consumers who are hesitant to use credit cards and are looking for alternatives. Many of these services are also designed to be more transparent than traditional credit card terms, including clear repayment plans and late fees.
A few of the most popular BNPL providers are Afterpay, Zip, Klarna, and Sezzle. Each offers a different set of features, but they all offer the same basic functionality: a simple checkout process that allows shoppers to break up large purchases into small installments, and the ability to try before you buy (although most don’t provide returns).
For merchants, offering BNPL is an opportunity to increase conversion. This type of financing is easier to qualify for than a traditional loan, and it can be especially helpful for shoppers who might otherwise not be able to afford your products or services. It can also help bolster your average order value by reducing the sticker shock of larger purchases—it’s much less intimidating to make four, interest-free $50 payments than one $200 transaction.
Unlike a credit card, most BNPL providers don’t report borrowers’ payment history to the credit bureaus. However, some do report missed or delinquent installments, which can damage a consumer’s credit score. As a result, it’s important to carefully select the service you choose and educate your customers about the risks of using these payment methods.
In addition, BNPL payment methods provide an alternative to lending with high interest rates and can help reduce the number of credit card chargebacks your business might experience. However, you should still monitor these charges closely and consider implementing additional layers of fraud protection to mitigate your risk.
Getting started with a BNPL provider is quick and easy—there’s no separate application or onboarding process, and most rely on a soft credit inquiry to approve new customers. Stripe Connect enables businesses to integrate with most of the popular BNPL options, making it possible to add this convenient option to your product, cart, and checkout pages in minutes.
Embrace Instant Payments
In the payments world, it can be challenging to keep up with all of the new technology and solutions that are emerging. And in some cases, it can also be difficult to determine what solutions ride which payment 'rails' or networks. For bankers, this can result in confusion about how to best position themselves to take advantage of new offerings and opportunities.
In recent years, there has been an increased demand by consumers and businesses for instant money movement. This has fueled the growth of real-time payments, which have begun to be deployed in many countries around the world.
One of the defining features of these instant payments is that funds are made available immediately after the transaction is initiated, whether it is person-to-person (P2P), business-to-business (B2B) or in e-commerce. This has radically changed consumer expectations of how they interact with companies and the ability to pay for goods or services.
The next few years will see the expansion of the instant payments market to a much larger set of users. This will be driven by the fact that many banks and in scope PSPs will begin offering the capability to send instant payments to their customers. This will open up new use cases, such as facilitating international retail and travel payments that currently require the use of wires which can be expensive and not immediately available.
Another driving factor will be the emergence of the FedNow Service, which will provide an opportunity for businesses to receive instant payments from all of the major US banks in a real-time environment. This will make it possible for a wide range of businesses to end the need to manage their cash flow with the delays that can sometimes occur when payments are received from vendors or suppliers.
The key for banking executives is to understand that these instant payments will become a core part of the everyday experience for consumers and businesses. As such, it will be important to identify the use cases that are most attractive and relevant to your customer base and then to develop and implement strategies that help you position yourself as a leader in this space.