As a small business owner or freelancer you are always looking for more and better ways to get paid. This is especially true when you sell your products and services online. You may have setup shop online, but sourcing a payment gateway that suits your billing and business style may be a bit challenging.
Your customers can pay for their online orders via many payment gateways. Traditionally most companies offer wire transfer, cheque, cash and direct bank deposit, but there are many other payment methods out there that can assist you to get paid. Let's take a peak at the criteria you should use when selecting a payment gateway for your business.
Location, location, location
First on the list is identifying what kind of customers your business has. Are most of your customers 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 customers 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 customers will be making once off or subscription payments?
If your clients need to make once off payments you can look at services that provide the customer with the ability to make an immediate, secure credit card payment. You can also look at an online payment facilitator, like PayPal, that allows instant payment via an account that can be topped up via credit card, bank account or wire transfer.
If the most of your customers will need to pay on a recurring 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 of rental of self storage units. Remember to ensure you use a recurring payment collection service that supports collection in the currency your customers use.
Overall service & fees
The last deciding 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 adequate information for accurate 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 perfect 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 global governing bodies to confirm the payment gateway you want to use complies with their regulations. Regulations in the payment gateway industry are there to protect you, so make sure you make use of the protection they supply.
Your customers can pay for their online orders via many payment gateways. Traditionally most companies offer wire transfer, cheque, cash and direct bank deposit, but there are many other payment methods out there that can assist you to get paid. Let's take a peak at the criteria you should use when selecting a payment gateway for your business.
Location, location, location
First on the list is identifying what kind of customers your business has. Are most of your customers 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 customers 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 customers will be making once off or subscription payments?
If your clients need to make once off payments you can look at services that provide the customer with the ability to make an immediate, secure credit card payment. You can also look at an online payment facilitator, like PayPal, that allows instant payment via an account that can be topped up via credit card, bank account or wire transfer.
If the most of your customers will need to pay on a recurring 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 of rental of self storage units. Remember to ensure you use a recurring payment collection service that supports collection in the currency your customers use.
Overall service & fees
The last deciding 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 adequate information for accurate 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 perfect 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 global governing bodies to confirm the payment gateway you want to use complies with their regulations. Regulations in the payment gateway industry are there to protect you, so make sure you make use of the protection they supply.
About the Author:
Bill Bapsnill has been in the online payment industry for many decades. He suggests that you do your subscription invoicing via an saas invoicing system.
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