Get Paid Faster with Online Payment Options

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Get Paid Faster with Online Payment Options
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• Pay now! Having this button on your digital
  invoice can shave 20 days or more off the time
  you usually wait for customers to pay. People
  love the convenience and flexibility of online
  payment. And that often translates into immediate
  action.
• Heres how small businesses can make online
  payment work for them.

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Online Payment Methods

• There are a variety of instant payment methods
  that dont even require customers to visit their
  banks website. The most popular ones include

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• Automated Clearing Houses
• Well-known providers include PayPal and Stripe
• Credit Cards
• MasterCard, VISA, American Express and Discover
  are among the most recognized. Customers like
  this option because it gives them the flexibility
  to pay you on time even if they dont have the
  money right now. Then their debt becomes the
  credit companys headache, not yours.

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• Debit Cards
• Customers transfer payment directly to you from
  their bank.
• Direct Debit
• Customers authorize automatic, recurring
  payments from their bank to you. This option is
  ideal for retainer agreements or ongoing services
  which you would normally bill monthly.

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Using a Merchant Service Provider

• Merchant service providers are companies who
  will handle the online payments for you. Choose
  one that specializes in the online payment method
  youve decided to offer (its unlikely that you
  will find it necessary to offer more than one or
  two methods). Getting set up is usually free
  after that there will be a fee per transaction.

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• To work with a merchant service provider, you
  will need online invoicing software. If you have
  the software already, there should be a section
  for add-on apps with a list of providers that can
  integrate with your software. Choose your
  provider and use the wizard to install the app
  yourself, or have your accountant do it.

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• Its important to note that you dont have to
  accept online payments every time the service
  can be switched on and off as often as you like.
  Many businesses prefer not to offer online
  payment if the invoice is for more than 5,000,
  because the transaction fee would be too high.

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Dealing with Transaction Fees

• Fees that you can typically expect are
• Credit and debit cards 2 to 4 of invoice
  value
• Direct debit not more than 2 (depends on the
  amount of the transaction)
• Stripe and PayPal 2.9 of invoice value plus
  0.30

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• For accounting purposes, transaction fees are a
  business expense which can be deducted on your
  income tax. Also, be sure to integrate this
  expense into your bookkeeping for the order, so
  that your profit is calculated correctly.

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• For small businesses who are more vulnerable to
  cash flow gaps when payments are late, online
  payment can be a dream come true. By making it
  easier for the customer to pay, you can expect
  more on-time payments and one less obstacle
  standing in the way of growing the business you
  love