There are many avenues of payment on the market today that enable your customers to make payment for the products and services they order from your business. Basic payment methods like wire transfers (Electronic Funds Transfers), cash, direct bank deposit and cheques are accepted by most businesses and offer your clients a good couple of general payment methods. But it is always a good thing to give your customers choice.
Your clients can pay for their online orders via many payment gateways. Traditionally most companies offer wire transfer, cheque, cash and direct bank deposit, but there are a host of other payment methods out there that can assist you to get paid. Let's take a peak at the criteria you should use when choosing a payment gateway for your business.
International versus local customers
First on the agenda is identifying what type of clients your business has. Are the majority of your customers based in your own region or country or do the most of your sales come from clients that are outside of your country or close geographic region.
It is also important to ask yourself what currency your customers will be paying you in. Most payment gateways have support for certain currencies only. So always pick one that supports the currencies your clients will want to pay in.
Once-off vs recurring payment
Now you need to decide on the types of payments you will be collecting. Ask yourself if your customers will be making once off or recurring payments?
If your customers need to make once off payments you can look at services that provide the customer with the ability to make an instant, secure credit card payment. You can also look at an online wallet, like PayPal, that allows immediate payment via an account that can be topped up via credit card, bank account or wire transfer.
If the most of your customers will need to pay on a recurring basis for the products or services you offer you will need to look at a payment gateway that allows the submission of recurring direct debits to credit cards and bank accounts e.g. a monthly payment of rental of self storage units. Remember to make sure you use a recurring payment collection service that supports collection in the currency your customers utilize.
General service and fees
The last deciding factor should be the overall level of service and costs involved in such an undertaking. Use the criteria below to help you make a final decision:
- Online transactions cost money, to save as much as you can shop around for the gateway that charges you the least in transaction fees. Saving few cents on each transaction can save you thousands over time.
- Reporting: Does the gateway provide suitable information for easy account reconciliation? Do they inform you of bounced payments and securely store client payment details.
- Some payment gateways supply you with an integrated merchant account while others require you to have one with a bank. Find out what the requirements are and if you qualify for an account before joining.
- Do they comply with local and international regulations governing payment gateways? Check with your local governing body to make sure the payment gateway you want to use complies.
Your clients can pay for their online orders via many payment gateways. Traditionally most companies offer wire transfer, cheque, cash and direct bank deposit, but there are a host of other payment methods out there that can assist you to get paid. Let's take a peak at the criteria you should use when choosing a payment gateway for your business.
International versus local customers
First on the agenda is identifying what type of clients your business has. Are the majority of your customers based in your own region or country or do the most of your sales come from clients that are outside of your country or close geographic region.
It is also important to ask yourself what currency your customers will be paying you in. Most payment gateways have support for certain currencies only. So always pick one that supports the currencies your clients will want to pay in.
Once-off vs recurring payment
Now you need to decide on the types of payments you will be collecting. Ask yourself if your customers will be making once off or recurring payments?
If your customers need to make once off payments you can look at services that provide the customer with the ability to make an instant, secure credit card payment. You can also look at an online wallet, like PayPal, that allows immediate payment via an account that can be topped up via credit card, bank account or wire transfer.
If the most of your customers will need to pay on a recurring basis for the products or services you offer you will need to look at a payment gateway that allows the submission of recurring direct debits to credit cards and bank accounts e.g. a monthly payment of rental of self storage units. Remember to make sure you use a recurring payment collection service that supports collection in the currency your customers utilize.
General service and fees
The last deciding factor should be the overall level of service and costs involved in such an undertaking. Use the criteria below to help you make a final decision:
- Online transactions cost money, to save as much as you can shop around for the gateway that charges you the least in transaction fees. Saving few cents on each transaction can save you thousands over time.
- Reporting: Does the gateway provide suitable information for easy account reconciliation? Do they inform you of bounced payments and securely store client payment details.
- Some payment gateways supply you with an integrated merchant account while others require you to have one with a bank. Find out what the requirements are and if you qualify for an account before joining.
- Do they comply with local and international regulations governing payment gateways? Check with your local governing body to make sure the payment gateway you want to use complies.
About the Author:
Bill Bapsnill has been in the online payment industry for many decades. He recommends that you do your recurring invoicing via debit order.
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