As a company 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 company culture may be a bit difficult.
Online orders can be settled through several other payment methods. Join me as I take a look at what payment gateways are available to the small business owner and suggest easy to follow methods of identifying which payment method would suit your companies style best.
Location, location, location
Ask yourself if most of your customers are based in your own country or do the majority of your sales come from clients that are outside of your country. Whether you use a geographically general or specific payment gateway is up to where the majority of your customers resides. If most of your clients are from your country you can use a local payment gateway. If most of your business is done with global clients you need to get a gateway that allows this.
What currency will your clients be paying you in? This will help you decide on a payment gateway that's right for you. Most payment gateways only support billing and payments collection in specific currencies, make sure the gateway you pick supports the currencies your clients wish to make payment in.
Once-off versus recurring payment
Another vital factor to establish is what types of payment you will be collecting and on what term. Will your customers be making once-off or recurring payments?
Selling products or services that need a once-off payment alone means you can look at a payment gateway that facilitates your clients to make immediate secure payments online. This is commonly a gateway that facilitates payment via credit card or a service like PayPal that provides instant secure payments for individuals who have accounts with them.
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 allows 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 allows collection in the currency your customers utilize.
Costing & level of service
So you have decided on a handful of gateways that meet your currency, target market and payment type needs. To assist you make your final decision you can use the tips below:
- Transaction fees: Investigate the fees each gateway charges and compare them. Some gateways also have security deposits that need to be paid and strict withdrawal policies, so make sure before committing.
- Remember that you will need to reconcile payment made through your payment gateway. It is therefore vital to ensure that the gateway you select provides adequate and accurate reporting.
- Some payment gateways provide you with an integrated merchant account while others require you to have one with a financial institution. Find out what the requirements are and if you qualify for an account before joining.
- Check with local and global governing bodies to confirm 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.
Online orders can be settled through several other payment methods. Join me as I take a look at what payment gateways are available to the small business owner and suggest easy to follow methods of identifying which payment method would suit your companies style best.
Location, location, location
Ask yourself if most of your customers are based in your own country or do the majority of your sales come from clients that are outside of your country. Whether you use a geographically general or specific payment gateway is up to where the majority of your customers resides. If most of your clients are from your country you can use a local payment gateway. If most of your business is done with global clients you need to get a gateway that allows this.
What currency will your clients be paying you in? This will help you decide on a payment gateway that's right for you. Most payment gateways only support billing and payments collection in specific currencies, make sure the gateway you pick supports the currencies your clients wish to make payment in.
Once-off versus recurring payment
Another vital factor to establish is what types of payment you will be collecting and on what term. Will your customers be making once-off or recurring payments?
Selling products or services that need a once-off payment alone means you can look at a payment gateway that facilitates your clients to make immediate secure payments online. This is commonly a gateway that facilitates payment via credit card or a service like PayPal that provides instant secure payments for individuals who have accounts with them.
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 allows 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 allows collection in the currency your customers utilize.
Costing & level of service
So you have decided on a handful of gateways that meet your currency, target market and payment type needs. To assist you make your final decision you can use the tips below:
- Transaction fees: Investigate the fees each gateway charges and compare them. Some gateways also have security deposits that need to be paid and strict withdrawal policies, so make sure before committing.
- Remember that you will need to reconcile payment made through your payment gateway. It is therefore vital to ensure that the gateway you select provides adequate and accurate reporting.
- Some payment gateways provide you with an integrated merchant account while others require you to have one with a financial institution. Find out what the requirements are and if you qualify for an account before joining.
- Check with local and global governing bodies to confirm 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 payment industry for many decades. He recommends that you do your recurring invoicing via debit order.
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