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A Brief Introduction to Electronic Payment Systems
As a small business owner (who may be selling online too), it’s important to have a secure payment system that helps your customers make payments to you easily and securely. Failing to provide a convenient electronic payment system could mean sending customers to competitors. If you continue to stick to cash and checks only, customers are likely to overlook you in the long run, seeking convenience of making payments with cards.
The best thing about electronic payment systems is that a variety of such systems are available; however, you may feel overwhelmed when trying to choose one if you don’t know that basics.
Are you a Small, In-House Service Provider?
If Yes, then you may want to choose only card processing services if you want to make it convenient for customers to make payments to you using credit cards. This is the best option for an in-person service provider. Customers may not always carry a lot of cash with them and having an option to pay using a Credit (or Debit) Card can make things much easier. You may also opt for mobile credit card processing that allows plugging credit card readers into your smartphone or tablet, without requiring any commitment. That’s a big help when taking payments at your customer’s location or if you have a mobile business.
Are you a Big Businesses?
If you are a big business or somebody that manages huge business operations, selling both online and offline, you may want to choose electronic payment systems that offer full-service products and manage all aspects of how you receive payments. Additionally, you can get access to online shopping carts and online payment gateways, besides credit card terminals. Some such service providers also offer merchant gift card products and other solutions for you to manage inventory or accept bank transfers.
Common Payment Systems
PayPal is undoubtedly one of the most popular electronic payment systems that can integrate with your website for card payments online. Moreover, the platform allows you to send and receive client invoices. However, compared to full-service merchant companies, PayPal seriously lags behind in overall capabilities and it’s charges can get high if you have higher volume.
Another payment service is Square Stand that simplifies point of sale for your store, turning your iPad into a cash register with a small upfront fee. The service is available with software for accepting online payments, inventory management, and making personalized loyalty programs.
Related: Point of Sale Systems
If you plan to sell online, it is imperative to facilitate making payments for customers through an online payment system that allows them to make payments with credit or debit cards.
When it comes to choosing an electronic payment system, also go with one that facilitates streamlining cash flow.
Pros and Cons of Electronic Payment Systems
Pros
Online payment systems facilitate the task of buying products online for customers. The lack of a convenient electronic payment system can force customers to abandon a transaction and go to your competitor.
Some payment processes allow you to include custom loyalty programs and gift cards instantly making your business more attractive to shoppers.
You can choose a system that allows you to design customized ecommerce sites. Depending on the type of products and services you sell online, you may not need to hire a third party to build you an ecommerce store.
Some electronic payment systems are integrated with accounting software. Getting such services makes it easier for you to manage money and/or inventory.
Cons
A processing fee is charged for accepting card payments. Sometimes Monthly Compliance and Statement Fees are also added on.
There is a risk of entering into contracts that are difficult to terminate. This is common with traditional credit card terminals.
Many electronic payment systems require you to have a merchant account in order to accept credit cards. A merchant account is usually a bank account where you will deposit payments.
It’s important to consider all payment services and figure out one that works best for you. Do your research and find out everything about the different payment systems out there and also what you really need.
Contact Us for more info on Electronic Payments or take us up on our FREE Merchant Account Analysis. We’ll analyze your merchant account rates and let you know how to Save! If you are ready, you may be able to Switch and Save!
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