Selecting The Ultimate Payment Gateway For Your Company
So, you are a small business owner or freelancer looking to expand your business and make some more money. You come up with the idea of supplementing your income by selling your products or services online. So you have setup your website and added your services and products. Now you are searching for a method for your clients to pay you.
There are a myriad of options available to the small business when it comes to receiving payments online. Traditional methods like wire transfer, cheque, cash and direct bank deposit are great basic payment methods for any small business, but because there are so many great online payment gateways out there it is possibly a good idea to offer at least one for you customers to use.
Geographic location of your clients
First on the list is identifying what type of clients your company has. Are most of your clients based in your own region or country or do the majority of your sales come from customers that are outside of your country or close geographic region.
It is also important to ask yourself what currency your clients 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 determine the types of payments you will be collecting. Ask yourself if your clients 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 client with the ability to make an instant, secure credit card payment. You can also look at an online payment facilitator, like PayPal, that allows immediate payment via an account that can be topped up via credit card, bank account or wire transfer.
If the majority of your customers will need to pay on a subscription basis for the products or services you offer you will need to look at a payment gateway that facilitates the submission of recurring direct debits to credit cards and bank accounts e.g. a monthly payment for rental of self storage units. Remember to ensure you use a recurring payment collection service that allows collection in the currency your customers utilize.
Overall service & fees
The final determining 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:
- Transaction fees: Investigate the fees each gateway charges and compare them. Some gateways also have security deposits that need to be put in place and strict withdrawal policies, so check it out before committing.
- Reporting: Does the gateway provide suitable information for easy account reconciliation? Do they inform you of failed payments and securely store client payment details.
- When utilizing some payment gateways you do not need a company or merchant account at a bank to use the collection service. This is great if you don't qualify for a business account at a bank. Do your research and find out what you qualify for and what merchant account your gateway offers.
- Check with local and international governing bodies to make sure the payment gateway you want to use complies with their laws. Regulations in the payment gateway industry are there to defend you, so make sure you make use of the protection they provide.
There are a myriad of options available to the small business when it comes to receiving payments online. Traditional methods like wire transfer, cheque, cash and direct bank deposit are great basic payment methods for any small business, but because there are so many great online payment gateways out there it is possibly a good idea to offer at least one for you customers to use.
Geographic location of your clients
First on the list is identifying what type of clients your company has. Are most of your clients based in your own region or country or do the majority of your sales come from customers that are outside of your country or close geographic region.
It is also important to ask yourself what currency your clients 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 determine the types of payments you will be collecting. Ask yourself if your clients 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 client with the ability to make an instant, secure credit card payment. You can also look at an online payment facilitator, like PayPal, that allows immediate payment via an account that can be topped up via credit card, bank account or wire transfer.
If the majority of your customers will need to pay on a subscription basis for the products or services you offer you will need to look at a payment gateway that facilitates the submission of recurring direct debits to credit cards and bank accounts e.g. a monthly payment for rental of self storage units. Remember to ensure you use a recurring payment collection service that allows collection in the currency your customers utilize.
Overall service & fees
The final determining 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:
- Transaction fees: Investigate the fees each gateway charges and compare them. Some gateways also have security deposits that need to be put in place and strict withdrawal policies, so check it out before committing.
- Reporting: Does the gateway provide suitable information for easy account reconciliation? Do they inform you of failed payments and securely store client payment details.
- When utilizing some payment gateways you do not need a company or merchant account at a bank to use the collection service. This is great if you don't qualify for a business account at a bank. Do your research and find out what you qualify for and what merchant account your gateway offers.
- Check with local and international governing bodies to make sure the payment gateway you want to use complies with their laws. Regulations in the payment gateway industry are there to defend you, so make sure you make use of the protection they provide.
About the Author:
Bill Bapsnill has been in the online billing industry for many decades. He recommends that you do your recurring invoicing via a billing system.
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