For businesses, accepting digital payments is more vital than ever. The question is which strategy is most appropriate for your company’s needs.
Several small businesses end up paying far too much for a processing agreement because they don’t have enough knowledge about the process, the players, and what’s involv.
What Are Digital Payments and How Do They Work?
A digital payment is anything that isn’t a physical check or cash in the register. They signify a money transfer from a customer’s account to yours. Transactions made with a credit card were not always consider digital payments. After that, point-of-sale terminals were invented, and credit and debit cards became digitis.
When you join up with a digital payment processor, they collect your financial information and streamline payments to and from your bank. When a customer makes a purchase, the processor collects their financial information and communicates with both your and their banks in order to complete the transaction. Top digital payment trends makes transactions easy, and secure and you can perform all your transactions without any hassle.
Transactions, encryption, and permissions are all handled automatically and are not visible to you. You’ll notice changes in your bank balance when each transaction is complet.
Accepting digital payments has several advantages:
- Payments are receiv faster in your bank accounts than cheques and even faster than receiving cash.
- Digital payments solutions are more convenient for most current clients.
- Nobody can loot your store and make off with a bag full of electronic currency.
- Many digital payment processors offer thorough, real-time financial tracking, helping you to better manage your money.
- If you structure digital payments appropriately, they can help you build more predictable cash flow throughout the duration of your business.
There are four different sorts of online payment platforms to choose from.
To accept digital payments through card or eCheck, you’ll need a way to communicate with the customer’s bank for authorization and your own bank for approval. This can happen in one of four ways.
- Mobile apps and digital wallets
Before the infrastructure was fully creat, there was PayPal, an online-only payment processor that allow consumers to make payments over the Internet. It wasn’t, for example, a bank or a communication and verification service like Visa or Mastercard. Even if PayPal was only available on desktop computers at the time, it was ground-breaking.
- Invoices that are enabled
When you bill a client, a pay-enabled invoice adds code to the file. This code will either create a form for entering payment information or a button that will link you to the website of your payment processor.
Not only can pay-enabled invoices save time and money over paper billing, but they also speed up payment and make it easier to track who has paid and who hasn’t. These make it incredibly easy for a customer to pay you what you owe them by automating the process and even automating reminders, late fees, and other bookkeeping tasks.
- Hand-entry of cards
Consider the last time you placed an order over the phone and gave a customer service person your credit card or banking information. The customer service employee was manually entering card data. You must manually enter your credit card information when making an online purchase through a website with its own payment portal.
This method has the advantage of being adaptable, as it only requires a valid credit or debit card from the customer.
- Card Readers
A credit card “reader” was once a physical machine that created a carbon impression of the card. These impressions were sent to the bank in a check-like manner, along with transaction details. Then there were the Internet-connect point-of-sale machines, which were put next to the cash register.
A plug-in or Bluetooth reader may now swipe, chip, or tap in cards and collect payments on any phone or tablet.
Some Key Digital Payment Options
Authorize.net is a straightforward payment processor that integrates with your current e-commerce platform.
You register an account, and they send you code to paste into the pages or invoices of your web store. The code allows for a simple, customizable checkout procedure that accepts credit cards, debit cards, and most payment apps. Mobile payments card readers can also be used for point-of-sale transactions.
Unlike many of the other companies on our list, Authorize.net offers a merchant services account or will work with you if you already have one from another company.
- Google Pay
If another company succeeds, Google will follow suit at some point. Google Pay is the company’s first entry into the world of digital payments.
It, like Apple Wallet, connects to accounts and cards you enter into the app on your phone, and then uses the one you choose to make a payment to someone who accepts Google Pay.
- Payline Data
Payline Data is a bare-bones credit card processing technology that ensures clear pricing so businesses know precisely what they’re getting. It concentrates on in-house retail sales, including web-based transaction terminals. That let you ring up sales using a tablet or laptop in person.
- Payment Depot
Payment Depot assigns a personal account manager to each customer and aids with web-based and in-store payment integration.
They have a tiered pricing structure that offers additional services and a cheaper per-transaction charge as you advance through the levels. And they publish basic recommendations for which tier is ideal for each company.
PayPal is commonly consider the industry standard for accepting digital payments.
It has grown to include person-to-person billing and payments, online commerce, and PayPal Checkout buttons that you may embed in your invoices and website since its inception. They give linked-to-your-account corporate debit cards and lines of credit, allowing you to spend more freely.
Every business has its own set of requirements. Every owner of a small business is in the same boat. That means there is no one-size-fits-all answer to any question you might have about accepting digital payments. Save for one: you must accept digital payments if you want to compete in the post-COVID world.
It can be tough to choose which type of digital payment platform is appropriate for you, but don’t despair. There are so many options available that you’ll be able to find one that properly matches your needs.