Reviewing Some Different Payment Options Available To Small Businesses

General Business

If you are a business owner, you gotta get paid to keep your lights on. Today there are so many ways to accept payment the choices can be overwhelming.

If you’re a brick and mortar or online business, you will need to know which payment option works for your target customer the best.

In this blog post, I would like to explain some of the different payment options available to the small business and some of the pros and cons. Payment options like PayPal, Venmo, Shopify, Google Checkout, Credit Cards, Mobile Payments, Square, Vend, Clover.

PayPal

Do you use PayPal to process your customer’s payments? If not you’re one of the few people left on the planet who aren’t taking advantage of this wonderful resource.

Here are some of the reasons why you should consider accepting PayPal on your website, especially if you’re new to the world of e-commerce and are looking for an affordable and easy to use payment solution.

With 267 million users worldwide, there can be no doubt that PayPal is a hugely popular payment option. Make sure you take advantage of this vast customer base by offering PayPal on your website, even if you already accept card payments.

It’s free to set-up a PayPal account for your business. There are no hidden start-up costs or yearly subscription fees to worry about.

 

It’s often the case that a potential customer has not heard of your business before, but they have heard of PayPal. They are therefore more likely to consider purchasing from your website if you accept PayPal, as they do not have to give you their financial details.

In addition to that, PayPal saves customers time by only requiring a username and password to purchase items from a website, avoiding the hassle of typing out your address and card details in full each time.

PayPal is easy and simple to use, even for those who have little or no experience buying or selling online. Your e-commerce provider should be able to help you to add PayPal as a payment method on your website.

Pros of Using PayPal

  • You can set up recurring payments
  • Your customers don’t need a PayPal account to pay you.
  • You don’t need a merchant account.
  • You can create and send invoices right through your account.
  • You can integrate PayPal with a number of shopping cart systems.

Cons of Using PayPal

  • PayPal’s seller protection policies does not cover digital goods.
  • There’re hefty fees for chargebacks.
  • You’re limited in terms of use and are subject to account suspension at any time which can result in frozen funds for months.
  • It can be difficult to contact PayPal’s customer support.

Venmo

Venmo basic set-up is simple. Customers can link a bank, credit, or debit card to the mobile app from which they can send or request money with the touch of a finger

As a business owner, you can use the app to collect payments for a processing fee of 2.9% plus 30 cents per transaction. Customers are not charged any additional fee unless they pay with a credit card, but using a debit card and bank account is totally free.

Venmo Pros

  • Ease of use is the thing that really stands out about this payment option. Sending money takes about 10 seconds. They won’t be charged any fees if they use their bank account or debit card to pay for transactions.

Venmo cons

  • The downside here is that your customers are charged a 3 percent for using their credit card, which can be a hassle for someone who uses a rewards credit card and wants to rack up points without a penalty.

Shopify

Shopify payments allows you to quickly begin accepting credit cards at your online store. You won’t have to worry about integrating a third-party processor or coordinate payments with separate company. Shopify payments are already integrated into your Shopify account, so it requires very little set-up.

All you have to do is select Shopify payments in your admin and add your banking information, Employer Identification Number, and the average price and shipping time for your orders. Transactions and payouts that some through your store via Shopify payments are then easily viewed and managed from within your main Shopify dashboard.

Pros of Using Shopify

  • Already integrated
  • Integrated fraud prevention
  • Shopify pay

Cons of Shopify

  • The main cons is that Shopify holds funds and chargebacks are an unfortunate and inevitable part of running an online business.
  • If clients file too many chargebacks against you, Shopify may withhold your funds, further complicating the issue.

Google Checkout

Google Checkout was created by Google in response to PayPal. This lets users buy goods via their Google account. Google Checkout major benefit is since lots of people use Google for a couple of services, the fact that the same account can also be used to purchase products.

Pros of Google Checkout

There are a number of pros associated with accepting Google Checkout. The major benefit is, the ease. It’s relatively easy to set up and integrate with your e-commerce website. It’s cost friendly. Google Checkout doesn’t charge any gateway, set-up or monthly fees. The only fees charged are transaction fees.

Cons of Google Checkout

Google Checkout only accepts debit and credit cards, so that can be limiting for those who want to pay with e-check or some other means. Another cons of Google Checkout is that, is not widely accepted as PayPal.

Credit Cards

There are many solutions for accepting credit cards other than the aforementioned options. Businesses selling products through their website are required to accept credit cards.

Pros of Credit Cards

  • Credit cards are the most common payment option. You would have hard-pressed to find someone without credit or at least a debit card. Therefore, accepting credit cards encourages impulse busy. Credit cards are easy to use and quick to process.

Cons of Credit Cards

  • Keeping track of all the laws and security precautions. There are several laws that must be adhered to should you decide to accept credit cards. In order to prevent security breaches and protect your customers, you will have to develop a higher level of awareness. For instance, legally, you can’t hold onto a customer’s information past a certain point without getting into trouble. It also requires processing fees in order to finally receive your payment.

Mobile Payments

This payment option actually encompasses several small options for brick and mortar small businesses. It’s a payment you can receive on your phone, whether it be through an SMS message, a QR code, NFC, or anything else.

Pros of Mobile Payments

  • Nearly everyone has a phone. Like credit cards, it is nearly impossible to find someone without a phone. So, whether your customer is sending you a payment through their phone, or initiating a payment through your phone, you will be covered.

Cons of Mobile Payments

  • Certain mobile methods are phone security leaks. In a survey conducted by ISACA 2015 found 27% claimed that mobile payments are not secure. Depending on which mobile payment method you choose, you may have to worry more about security.
  • Not all card readers are created equal. If you choose a mobile payment option that involves using an app with an actual, tangible, card reader.

Vend

Vend may be the best PROS device payment for retailers, as its software is designed specially to convert iPads into device registers for all retail stores.

Clover

This device is a top competitor of Square’s for its comprehensive, highly customizable PROS solutions. Clover Go is a small, Bluetooth connected device that allows Clover users to accept EMV and NFC cards from their smart devices. Clover Flex is a unique, handheld device with an intuitive touch-screen that can accept all types of credit payments, as well as capture signatures, scan barcodes, and print receipts.

Square

Square is the best mobile payment solutions for several reasons not the least of which is because its software is actually free. All you have to do is download the Square PROS app to your Apple or Android devices to load your smartphone, tablet, laptop with the capabilities to process payments.

 

 

There are many different payment options. It is important that you learn what your customers use most and what works best for your buisness model.

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