As a merchant, you always want to provide your customers with a user-friendly, smooth checkout process while giving them a sense of confidence that their financial details will not get hacked. At the same time, you also want to ensure you will receive payments efficiently and quickly.
Several online payment methods allow businesses to get paid on time while giving security assurance to payments. These methods include invoicing software platforms, mobile payment apps, and direct deposit of ACH. If you want to accept payment online, you can opt for any method that suits your needs and preferences.
Our team of experts has done significant research to provide you with in-depth knowledge of online payment options. Here we discuss features, benefits, and types of most common payment methods. Let’s learn how you can make payment easier for your customers.
Invoicing Software Platforms
Invoicing software are cloud-based platforms that automatically generates billing for purchased products and services. This cutting-edge technology creates a list of products and services that also includes their costs and sends it to your consumers as a binding invoice. These software platforms are perfect for coaches, contractors, small business owners, and freelancers who need fast and easy mobile invoicing solutions.
Invoicing software is not limited to generating invoices. They are more advanced and offer intuitive features and an interactive user interface to solve several payment and billing challenges. Bonsai is one of the best invoicing software you can find in the market. It features smart automation that saves time and gets you paid on time. The best part is that Bonsai allows you to choose from a wide range of global payment options, such as PayPal, credit card, and ACH.
With Bonsai, you can ensure your clients pay you before the due date. This is because you can set automatic payment reminders that will be sent on your behalf, making it hard for your customers to forget to pay for your services. Not only can you accept payments online, but you can also use the money received through a physical card, virtual card, or apple pay.
Worried whether you have a full payment? Struggling with the calculation? Bonsai can help you with account management features as well. It is the perfect solution for all your financial concerns. You can automatically set aside a portion of your earnings in custom envelopes for holidays, taxes, or savings. This way, you will not be empty-handed when purchasing gifts or facing any medical emergency.
Mobile Payment Apps
Mobile payment apps allow you to leave the cards and cash at home and enjoy the digital revolution. These apps allow you to make cashless and contactless interactions, which have become necessary after experiencing life during the pandemic. Mobile apps feature digital transactions to receive or send money.
Businesses can use these apps to offer convenience to customers, as they can easily make online payments whenever they want. Here are some of the most popular mobile payment apps:
- Google Pay
- Apple Pay
- Samsung Pay
Note that these apps are more secure and convenient than using credit cards and save you from worries of theft. Since they are built with high-tech methods, you don’t need to worry about losing your data.
Direct Deposit of ACH
An ACH direct deposit is another method to get online payments. It works through electronic funds transfers into consumers’ savings or checking accounts. ACH is a network that transfers money electronically between bank accounts.
If you want to get payments through ACH, you don’t need any special software or meet specific requirements. All you need to do is to give your direct deposit information to your client or customer. This includes:
- Your bank account number
- Your bank’s routing number
Based on the requirements of a company, you may have to provide an authorization form or voided check from the bank. However, many companies will initiate ACH with simple bank information. Note that the payer also needs to pay fees for ACH transfer. You don’t need to do this in the credit card transaction, as it only requires the recipient to pay fees. But for sure, this method is easy and simple and works best for businesses.
Online Payment Service Provider
If you are running an e-Commerce business, you might receive the payments through an online payment services provider. This is the most common and popular method to accept payments online. PSP or payment service provider refers to a third-party company that offers payment services to online businesses. Some common PSPs are:
- Amazon Pay
Since PSP helps merchants accept digital payments, they must work with banks, merchants, and card networks to create a streamlined transaction process. The primary benefit of PSP is that it supports several payment methods, making it easier for consumers to choose any mode of payment. This improves customer satisfaction and provides excellent checkout experiences.
PSPs accept numerous currencies that allow businesses to sell services and products to a global customer base. This is essential for any company that wants to scale its business beyond the US. PSP can prevent fraud by verifying customers’ card information before approving transaction requests. Only if there is no sign of suspicious activity will the user get the approval to make the payment.
Pros of Accepting Online Payments
Reach to Global Audience
Possibly the most significant appeal to opting for online payment methods is that a business can target a broad range of customers across the globe. As a merchant selling online, having a reach to a global audience is a blessing and helps you expand your sales.
Convenience and Ease
Online shopping has made life easier for customers, allowing them to shop by staying in their comfort zone. But this has only been made possible with automatic online payment features. Not only it benefits customers, but businesses also don’t have to process payment slips and set up payment systems.
Online payments come with lower financial risks for the companies compared to the traditional methods, where merchants must deal with the fees in case of a bounced check or verify the integrity of the cash payment. By accepting online payments, money is instantly deposited into your account.
Cons of Accepting Online Payments
CRM Software Cost
Most online billing and payment methods require you to integrate CRM with it. CRM is essential for storing, organizing, and knowing your customer’s information, which will help improve cash flow and prevent errors during online payments.
If you don’t install CRM, your team will have to spend hours on tedious tasks like manually searching for customer information. However, setting up CRM software requires capital. The cost depends on various factors like:
- Number of users
- Features you need
- CRM type
Non-Technologically Savvy Clients
You might come across some customers who are reluctant to use online payments because they find it challenging to navigate the payment process or don’t know how to initiate the payment. They generally prefer the transitional method of payments. So, you also need to consider these types of people that require you to look for ways to facilitate them.
Based on the online method you choose, you might need to use a password to access the online portal. These passwords are required to protect and secure your bank account details and personal information. You must ensure you integrate the system with high-technology privacy systems that protect your payment method.
Frequently Asked Questions
What Is The Safest Way To Accept Payment?
If you want a safe online payment method, invoicing software platforms are the best of all. They can help you get paid on time.
Can I Accept Online Payments Without A Bank Account?
Yes, online payment service providers like PayPal allow you to receive payment without a bank account. Many other wallets don’t ask for bank account information.
What Is The Best Way To Take Payments Online?
Invoicing software platforms are the best, safest, and most convenient ways to collect money online that you can use or transfer quickly. Bonsai is the best option, and it offers a bundle of features like virtual cards and invoice reminders.
Advancement in technology has made it easier to accept payment online. There are unlimited ways to collect payments, which are safe, convenient, and quick. With these payment options, you can save yourself from the tedious task of collecting receipts and notifying your customers to pay you. While you have multiple choices, not every payment option will work for you. Consider your needs and preferences before choosing one.
If you are looking for the simplest and easiest method, then choose Bonsai. It is a fully integrated, native invoice & billing software that connects to the ecosystem of business tools available to you - Start your free trial today!