7 Best Online Payment Methods for Businesses

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June 1, 2022 Business

In our day and age, businesses revolve around customer satisfaction, striving to build trust with their customers and encourage them to come back for future purchases. One factor contributing to the excellent customer experience is enabling secure and reliable payment methods so that your prospects can shop conveniently. And providing them with more than one payment option helps you attract more customers by allowing them to pay for your products and services using their favorite payment methods.

Utilizing different payment methods offer customers better flexibility and allows you to expand your business globally, so it might be a more valuable asset than you might think. In the article below, we share more information about the best online payment methods for businesses today. These include e-wallets (Apple Pay, Google Pay), bank transfers, card payments, as well as alternative methods like ACH payment, PayPal, or Buy-Now-Pay-Later (BNPL). Read on and learn more about online payment methods your business can benefit from.

Bank Transfers

Bank transfers are among the most common online payment method, although a bit outdated. They can be executed through online banking platforms or apps and are usually free of charge. Some banks might charge a small fee for international transfers, though, so it’s always best to contact your bank beforehand to see what charges apply.

The downside of bank transfers is that they can be quite slow, taking up to several days for the transaction to go through. This means that bank transfers are not a great option for online businesses dealing with fast and urgent orders, that is, if you’re in the food industry, for example.

ACH Payment

ACH payment is an electronic payment method that allows customers to make payments directly from their bank accounts. This payment method is often used for recurring payments, such as utility bills or subscription fees. Today, ACH payments can be used to make online purchases, as well. ACH Payment Payment Savvy services, along with Stripe, are a few popular payment processors to mention that allow businesses to accept ACH payments.

Credit and Debit Card Payments

Card payments are probably the most popular payment method worldwide. Credit and debit cards offer a convenient way to make purchases, both online and offline. In addition, they are often integrated with loyalty programs, which can help businesses increase customer retention rates.

That being said, card payments are not without risk – if your business accepts card payments, you’ll need to be aware of the potential for fraud and chargebacks and have the system in place to deal with them. The good news is that there are some effective ways to prevent and defend against fraud, like 3D Secure, AVS checks, and CVV verification.

E-wallets

E-wallets are digital versions of our physical wallets, allowing us to store our card information and other sensitive data in one place. These payment methods are becoming increasingly popular as they offer a convenient way to make contactless payments. On top of that, most e-wallets create virtual cards and accounts in order to protect your identity.

Apple Pay and Google Pay are two of the most popular e-wallets available today. Apple Pay is accepted by millions of stores worldwide and can be used for online and in-app purchases. Google Pay, on the other hand, can be used for both online and offline payments – just like a regular credit card – as well as for peer-to-peer transfers.

PayPal

It is safe to say that PayPal is one of the pioneers of online payment methods. It offers a convenient way to send and receive money online, as well as make purchases on the Internet. Integration with your browser and the mobile app allows you to make online payments with just a few clicks.

Besides, PayPal offers buyer protection, which can help customers feel more secure when making purchases from your business. This means that if the customer is not satisfied with the purchase, they can file a claim with PayPal and receive a refund. The same goes for the seller – if you don’t receive your payment, PayPal offers you to file a dispute.

Buy-Now-Pay-Later (BNPL)

Buy-Now-Pay-Later is an alternative online payment method that allows customers to pay for their purchases over time. This payment method is often used for larger purchases, such as furniture or electronics, but is also a preferable option when shopping for clothes online – you can pay after ensuring that the ordered size fits well.

Such a payment method can be beneficial for businesses as it encourages customers to make larger purchases. After all, customers are more likely to buy a $500 sofa when they can pay it off whenever they feel comfortable, instead of all at once. Most BNPL providers cover the cost of the purchase until it’s paid off by customers, so there’s no need to worry about delayed or missed payments.

Cryptocurrencies

Cryptocurrencies are a relatively new payment method that’s becoming increasingly popular. Digital currencies are a decentralized payment method that doesn’t require the involvement of financial institutions or other third parties, making them a secure and private way to make online payments.

Cryptocurrencies are also exempt from exchange rate fees or international transaction fees, which makes them a suitable payment method for businesses that operate worldwide. However, due to the nature of digital currencies, they can be quite volatile. This means that the value of the currency can go up and down, so there’s always a risk that you might lose money with this type of payment method.

Conclusion

There are many different online payment methods available today, each with its own advantages and disadvantages. Businesses should carefully consider which payment methods to offer their customers, as the best payment method for your particular business will always depend on your specific needs and requirements.

Offering a variety of payment methods can help you attract more customers and increase sales, and ensuring their security and reliability will help you build trust with your customers, making them more likely to return in the future. We hope this article has helped you learn more about the best online payment methods for businesses. Good luck!