June 6th, 2022 | Updated on June 8th, 2022
Setting up online payments for your business is a lucrative way to reduce costs and increase revenue. The process can also be instrumental in establishing a customer base and building customer trust.
Knowing how to set up various methods for payment, including credit card transactions, e-checks, mobile payments, etc., will help you establish a strong foothold in the market. This article will show you different ways to set up online payment for the business.
What Is A Payment Gateway?
A payment gateway is a mechanism that helps read and transfer payment information, from a buyer to a merchant’s bank. The most common method is to transfer customer information from the merchant’s website to an electronic gateway, which processes the payment and performs fraud protection and funds transfer.
A payment gateway can be either a software application or a web service. It allows secure electronic transactions for both businesses and individuals through the Internet.
Ways To Set Up Online Payments
The most basic way to set up online payments for your business is to accept payment through a credit card. Also, you can accept e-checks through direct transfer or local bank transfer and mobile payments by using the credit card reader for mobile devices.
There are also more advanced ways to offer better security and a smoother customer experience, including offering automatic bill pay and giving clients options for paying (e.g., choose between an electronic check or credit card).
Below you can find the most popular ways to set online payments for your business.
Accept Online Credit Card Payments On Your Website
You need a merchant account with a traditional bank to accept credit cards. First, you will need to apply for an account with your bank and go through the approval process. Once you have been approved, your bank will provide you with a merchant identification number.
You will also be provided with your credit card terminal or authorised sales representative to take payments from your customers. You then need to install software on your server to process payments and route them through the proper gateway.
Accept eCheck Payment Through Direct Transfer
To accept eChecks through a direct transfer, simply use an online payment processor that supports e-check transactions.
These processors allow you to fund your account using an electronic transfer from your bank account and then process payments through the gateway. The most important thing is choosing a processor that will allow you to receive payments by check or direct deposit.
Accept Mobile Payments
Setting up mobile payments for your business is a great way to boost sales. Your customers can pay with their phones, eliminating the need for cash or cards. Mobile payment apps see the highest growth in sales due to the ease of buying and paying.
Such payment services are compatible with both iOS and Android operating systems, and they allow you to accept credit card payments directly from your mobile device.
Enable Click-To-Pay Email Invoicing
Email invoicing is a great alternative for those who do not want to go through the trouble of manually creating invoices each month.
Instead, you can enable the click-to-pay function of your online payment processor and let your customers pay online by clicking an email link. This is a fast, convenient, and secure way to collect payments without messing with paper invoices.
Offer Automatic Bill Pay
Automatic bill pay is a faster and more convenient way to get paid than sending paper invoices or credit card statements.
It allows businesses to receive payments from their customers on demand and at whatever time suits them best. For example, PayPal will enable you to accept payments from any account, including checking and savings accounts.
Give Clients Options
An important part of setting up online payment for business is choosing the right options for your clients. After all, they are your customers, so it’s only logical to listen to what they want and try to accommodate them as best you can.
Some businesses offer customers personalised online payment options by setting up customised accounts for them (e.g., an account that uses their name, billing address, and preferred payment method).
You can also provide different options for paying (e.g., pay with a credit card or use a debit card), mobile payments, or direct deposit methods.
Offer Better Security
The last method to set up online payments for your business is by offering better security. For example, PayPal delivers one of the most secure ways to handle payments because it offers multiple layers of protection.
It uses encryption and digital signatures, making it very difficult for hackers to steal your customers’ financial information.
The Bottom Line
After reviewing the different methods of how to set up online payments, it’s now clear that there are many ways to get the job done. You can choose between different credit card processing methods and different payment gateways.
This choice is best left to you and depends on which services will offer you the best way to process payments while ensuring security. The most important thing is to choose the right one that will best suit the needs of your business.