How to choose the best online payment method

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As more businesses go digital, online payments are essential to their business. Online payment systems can be used to facilitate payments to your customers, regardless of whether you have a physical store, or sell products.
The modern online payment system can not only process debit or credit cards, but they also allow for digital payments like PayPal. The online payment system you choose will determine the currencies you can accept, how fast money will be deposited into your account, the transaction fees, and the payment methods you’ll be able to accept.
All of this means that the payment system you choose can make or break your business, so it’s crucial to choose the right online payment system.
Prices
When choosing an online payment method, it is important to think about your budget. It’s important to keep both set up costs as well as recurring fees in mind when comparing costs of different systems. This service usually involves monthly service fees as well installation fees.
Certain systems may charge fixed fees per transaction while other systems will have variable fees, based on a percentage. Neither of these models is inherently better than the other – the right choice will depend on your business, the products you sell, and your customer profile.
Security
Your business could be exposed to severe legal issues if it is harmed by unintentional or intentional data breaches. Most countries now have strict laws in place to ensure the protection of customers’ private information. When choosing an online payment method, you should consider its level of security.
Customers must provide personal financial information to make online payments. You could be subject to serious data breaches if you fail to comply with the gateway requirements or the minimum security standards required by law.
It’s important to understand all relevant data privacy regulations, such as screening tools and security protocols, before you offer online payments to your customers. It can be a good idea to consult an expert to make sure you’re across everything.
Payment Methods and Features
Another factor to look for is whether or not the online payment system you’re considering accepts your customers’ preferred payment methods that your customers prefer.  Debit, credit cards and eWallets such as PayPal are generally the preferred payment methods on a  global scale.
However, it’s also important to consider your target customers – if you’re targeting specific local markets, they may have specific payment methods they prefer to use. It is important to research your market and find out how they prefer to pay. Your customers may prefer local options, so your company will need to be flexible to ensure targeted conversion rates.
Transaction limits
Most new businesses don’t need to worry too much about limits on monthly transactions. To grow your business, you will need to process more transactions every month.
Therefore, with a long-term view it’s important to choose a payment system that can meet your business’ needs as it grows in the future. Many online payment systems offer various plans that are divided according to the amount of transactions processed each month. You can start at a lower tier, and increase your plan as you grow your business.
Integration
Integration is another essential factor – being able to integrate your online payment systems with your bookkeeping tools will make your operations so much more efficient. This will allow you to integrate automated invoicing, credit note, tax calculations and refunds.
Not all bookskeeping software can integrate with all online payment platforms. Contact your bookkeeping software’s support team and ask for the list of payment methods the software supports. Alternativly, consider changing to an online bookkeeping software that integrates with your new online payments system.
Holding on to Time
These funds will be held in a bank account for up to a week before being sent. Payments are usually confirmed immediately. For refunds or chargebacks to be processed, you will need to allow for a holding period. Depending on the service provider, these holding periods can be anywhere between one and seven days – so this could make a big difference to your business’ cash flow!
Automated Billing
Your online payment system must be capable of handling billing transactions if you are selling subscriptions, or considering it. This is crucial to prevent time-consuming manual processes and uncomplicated payment intervals.
Providers should have the ability to keep client data and automatically bill credit cards according to predetermined subscription plans. They also need to offer options such as retrying for failed transactions.
Final Thoughts
It’s important to do your research and compare various online payment gateways to find the best choice for your business. Consider integration, fees structure, automatic billing and security. These factors will allow you to make the right choice for your company that will enable you to grow.

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