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Financial Education

How to accept payments online – All the ways you should know

DNBC Team DNBC Team

May 15, 2023

Table of Content

It is expected that companies conduct their business activities online regardless of whether their main products or services are sold in physical stores. Enabling online payment for your products or services can expand your reach to a broader audience and facilitate a seamless customer experience. We have outlined four straightforward and efficient methods that your business can utilize to accept payments online.

How to accept payments online - All the ways you should
 know

How to accept payments online – All the ways you should know

How to accept online payments for business

The methods for accepting business payments online vary and depend on the type of business you operate.

Online Payment Service Provider

If you own a service-based business or sell products through online channels, using a payment service provider is likely the most common way to receive payments from customers or clients. Popular payment service providers include PayPal and Stripe, and if you run an e-commerce business on platforms such as Shopify or WooCommerce, you can use their built-in payment processors.

Most modern website builders, such as Kajabi, Squarespace, and WordPress, seamlessly integrate with payment service providers. After creating an account with PayPal or Stripe, you can simply input the details on your website builder to enable payment on your website.

Online payment service providers allow you to receive payments through credit card transactions or directly from the customer’s account with the provider, such as PayPal. Setting up an account with most payment service providers is free, and you will incur a transaction fee of approximately 3% per transaction depending on the platform. Many popular points of sale (POS) systems also provide e-commerce modules with online payment processing capabilities.

ACH Transfers

Automated Clearing House (ACH) is an electronic money transfer network that facilitates transactions between bank accounts in the United States. Typically, ACH transfers are used for direct deposit payments.

To accept payments via ACH transfer, no special capabilities are usually required. You only need to provide your bank’s routing number and your bank account number to the customer or client. Some companies may request a voided check, which contains this information, or an authorization form from your bank. However, most companies will initiate ACH with just your bank details.

The payer is usually responsible for ACH payments because they need access to the necessary accounts and tools, including an ACH payment service provider like Gusto, or Stax. As the recipient, you do not cover the fees for an ACH transfer, unlike a credit card transaction where you pay the fees.

Alternatively, you can receive ACH payments via your own Stripe account, with a 0.08% fee per transaction and a cap of $5. The customer must link their bank account using the Plaid network to facilitate the ACH payment.

Mobile Payment Apps

Mobile payment apps such as the DNBCnet app, Google Wallet, and Apple Pay allow businesses to accept payments from customers who are using their smartphones. These apps typically charge a transaction fee, but they can be a convenient way to accept payments on the go or at events.

The DNBCnet App is an app that has received high ratings for its ability to quickly and safely transfer money internationally. Users can send money to over 200 countries at a reasonable cost and with competitive currency exchange rates. The DNBCnet App is designed to be user-friendly and easy to use, with a simple interface that makes sending and receiving money effortless. Additionally, the app offers 24/7 customer support to address any questions or concerns that may arise. The DNBCnet App provides numerous benefits, such as competitive exchange rates, low transaction fees, secure and speedy transfers, a user-friendly interface, and continuous customer support.

Invoicing and billing

One way to simplify payment for your services is to use an invoicing platform that allows for one-click payments directly from clients’ emails. Platforms such as QuickBooks offer integrations with popular payment service providers. It’s possible to use email to send invoices to your clients, and these platforms will create messages that include a payment button to urge them to pay quickly. You can select which payment methods to accept by activating your preferred option or enabling multiple payment methods to give clients more options.

Advantages of accepting payments online

Even if you’re running an online business, it’s still possible to operate without accepting payments online. Instead, you can opt for traditional methods such as mailing invoices and waiting for checks to arrive. However, accepting online payments offers a range of opportunities and benefits that can significantly improve your business.

Regardless of the products or services you offer, accepting online payments can expand your audience by making it more convenient for customers to purchase from you. A smooth payment process leads to a better customer experience, which in turn can increase the likelihood of repeat business.

Online payments also make it easy to set up memberships and subscriptions. Payment service providers facilitate automatic recurring payments, saving you the time and hassle of invoicing customers and collecting payments each billing period. This improves customer retention because customers don’t have to go through the hassle of deciding whether or not to renew their subscription each month.

Finally, online payments are faster than traditional methods of payment. Waiting for a customer to receive an invoice and mail you a check can take days or even weeks. Online payments, on the other hand, can be processed instantly or within a few days at most.

Drawbacks of Accepting payments online

The advantages and convenience of online payments also come with some downsides, although the benefits generally outweigh the drawbacks. When setting up online payments for your business, consider these possible drawbacks:

Fees – Unlike payments made by mail, online payments involve a third-party intermediary who needs to be compensated. Payment processing fees will consume a portion of your revenue.

Data management – When customers make purchases online, the possibility of identity theft and credit card fraud is significantly greater than when they pay in person or with a different payment method. If you use a self-hosted payment gateway, you’ll be responsible for safeguarding clients’ financial information on your servers. You can delegate this responsibility by using a hosted payment gateway or a payment service provider.

About DNBC Financial Group

DNBC Financial Group is dedicated to making global financial transactions simpler. We have expanded quickly to help businesses and individuals worldwide by reducing the costs of international shipping and spending, receiving payments from clients in foreign countries, transferring funds between international branches, and managing the effects of changes in currency rates.

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Note: The content in this article is for general informative purposes only. You should conduct your own research or ask for specialist advice before making any financial decisions. All information in this article is current as of the date of publication, and DNBC Financial Group reserves the right to modify, add, or remove any information. We don’t provide any express or implied representations, warranties, or guarantees regarding the accuracy, completeness, or currency of the content within this publication.