Are you still manually processing all of your payments? It can be time-consuming and tedious. Regardless of how you send money online, there are several advantages to using a reliable and user-friendly platform.
Being able to connect with all of your consumers and simplify their user experience is more important than ever in this digital world. And one method to do it is with the help of online payment systems.
Let’s take a look at how online payment systems work and some of the best options for your small business.
The Top 5 Best Online Payment Gateways for Small Businesses
What Are Online Payment Systems?
When the term ‘online payment system’ is thrown around it can mean a few different things. And while there are subtle differences, they all refer to a service that facilitates online transactions.
The following terms can be used to describe online payments:
A payment gateway
This is the service that takes online payment requests and directs them to the online payment processor
Merchant accounts
After a purchase is made online, money is moved from the customer’s account to the merchant’s account. To set up a merchant account for this, you often need to deal with your merchant account.
A payment processor
This is the service that validates credit card details and makes sure there are sufficient funds to make a payment
A payment provider
This is the company or business that operates one or both of the payment gateway and payment processor
Why Are They Necessary?
There can be several advantages to implementing an online payment service for your business. And those advantages will positively impact both you and your customer base.
Advantages of using online payment gateways
- Payment processing is faster
- You can better meet customer expectations
- It’s important to remember that some online payment systems will work better for some businesses compared to others. It all depends on your needs, the type of transactions and how frequently those transactions get made.
- Accounting processes become well-defined
- There’s no need to wait for funds to reach your bank and then have to wait for them to clear. Payments are processed almost immediately.
- Your customers want things to happen seamlessly and quickly. And with more and more people making purchases online, an online payment system will help make your processes more efficient.
- Since the payments are automated, you don’t have to go through the process of manually entering and recording transactions. Everything gets done for you on the payment platform.
Before committing to a payment system, take some time to look through the features and services different platforms offer. You can make sure you find the solution that has the features that you need.
Here are the top 5 best online payment systems for small businesses.
1. PayPal
PayPal has been around for a long time and is one of the most popular and widely-used payment systems. You can connect multiple credit and debit cards and there are 56 different currencies available. Plus, there are no monthly membership fees.
You can send and receive money, link your bank account details and even set up recurring payments. And even if your PayPal balance is zero, you can still make purchases through your connected bank account. The app is also available in over 200 countries.
2. Due
More than a payment solution, Due has a broad range of features and services that set it apart from other systems. What started as a time-tracking and invoicing tool now offers services for secure online payments. It even has an e-bank, which is a place where you’re able to securely store your cash online.
You can gain access to virtual wallets, make secure transactions and implement time-tracking software at the same time. The broad range of features makes it a great option for any small business.
3. Barclaycard
When it comes to flexible payment processors, Barclaycard is one of the best on the market. They offer capabilities for businesses of any size, and allow you to get paid in 1-2 business days.
Barclaycard also has fees as low as 1% per transaction, which means more money in your project.
4. Dwolla
One thing that stands out most about Dwolla is the wide variety of integrations offered. You’re able to set up multiple different payment structures if you need to. Things like instalment payments, recurring charges or multiple-stage interests.
There is a monthly fee associated with using Dwolla but it’s a competitive rate compared to other online payment systems. The platform is also incredibly flexible, which will allow you to set it up for your exact needs.
5. FreshBooks
An all-in-one small business invoicing and accounting solution, FreshBooks offers powerful software options. It’s implemented by millions of businesses around the world. And the platform provides a seamless user experience with financial reports that you can understand.
One of the greatest things about FreshBooks is that it has solutions for all your accounting needs and is also a powerful payment processor. This could give you the ultimate reporting tool for all your business needs.
Conclusion
With so many options out there for a payment system, it can be difficult to figure out which one you should use. Do you need to transfer funds to different financial institutions or a credit card company? What different payment methods can you accept? Do you send a lot of electronic checks or are you just exploring payment platform options?
The most important thing to remember is to confirm that the payment system you select has the proper range of features and services. Some of the platforms let users test them out for free or charge no monthly fees. In order to determine which system will work best, you can always test out a few different options.
But regardless of which platform you decide to use, it will help make your payment and accounting processes more efficient. Additionally, you’ll be able to process payments more quickly and meet and exceed customer expectations.