{"id":3033,"date":"2020-12-12T13:13:24","date_gmt":"2020-12-12T21:13:24","guid":{"rendered":"https:\/\/www.cashry.com\/blog\/?p=3033"},"modified":"2023-02-24T05:50:49","modified_gmt":"2023-02-24T13:50:49","slug":"7-best-online-payment-services","status":"publish","type":"post","link":"https:\/\/www.cashry.com\/blog\/7-best-online-payment-services\/","title":{"rendered":"A Study of the 7 Best Online Payment Services"},"content":{"rendered":"
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It\u2019s becoming more and more convenient and practical to send and receive money by simply pulling out your phone (or opening your laptop). Whether you\u2019re ordering something online, sending cash to your kid at college, and so on… The best online payment services offer convenience and limited fees or obligations.<\/p>\n\n\n\n

If you\u2019re a small business owner working your table at special events or offering mobile services to customers, the right online payment service can make your job easier and keep things moving so you can serve more customers. You don\u2019t make money while you\u2019re waiting on payments to clear or trying to run plastic through a machine. You make money when one happy customer wraps up easily and the next happy customer steps up!<\/p>\n\n\n\n

This year, of course, we have to factor in the whole Covid-19 nightmare and how it\u2019s impacting retail, restaurants, and our general patience with being around other people in public \u2013 or not being around them, period. Easy, quick payment methods that don\u2019t involve touching each other, or the ability to safely pay online, with or without a credit card, are more in demand than ever before.<\/p>\n\n\n\n

New Payment Services<\/h3>\n\n\n\n

Historically, figuring out how to process payments has been one of the biggest headaches of any new endeavor. Entrepreneurs were limited by the need to take cash, risk taking personal checks, or hauling around one of those old metal credit card swiping machines. You basically had to establish your own financial infrastructure just to get started \u2013 and that\u2019s assuming your local bank or credit union was even interested in helping you figure it all out. Even with your own website, figuring out payment options could be daunting.<\/p>\n\n\n\n

How many times have you, as a customer, tried to purchase something from a lesser-known online company and finally given up and just gone to Amazon<\/em> or some other name brand? Yeah, exactly. <\/p>\n\n\n\n

Besides, if we\u2019re being honest, it\u2019s about more than making things convenient. The best online payment services for small business owners make impulse purchases as painless as possible and let customers stay \u201cin the flow.\u201d You\u2019ve probably done it yourself. If it takes seven steps to order something, that’s seven opportunities to think the better of it and change your mind. If it\u2019s just a click or two, on the other hand\u2026<\/p>\n\n\n\n

(Oh well, it\u2019s on the way now. I\u2019m sure I\u2019ll love it. If not, one less thing to buy for the next holiday or special occasion.)<\/p>\n\n\n\n

More and More Online Payment Services<\/h3>\n\n\n\n

Little surprise, then, that the number and variety of online payment services has exploded in recent years. It\u2019s great having so many options, but honestly, it can be a bit overwhelming. Where should you even begin? We\u2019re going to spotlight seven of the best online payment services currently setting the bar for everyone else. Some specifically target convenience for small businesses, while others are more popular with individual users. Chances are good, however, that one of them is just right for you.<\/p>\n\n\n\n

First, however, let\u2019s make sure we\u2019re familiar with a few of the terms you\u2019re likely to hear thrown around.<\/p>\n\n\n\n

Let\u2019s Talk Online Payment Terms<\/h2>\n\n\n\n

As with so many things, especially when something is relatively new to many users, you\u2019ll find many terms used interchangeably \u2013 whatever their actual definitions. Our goal here isn\u2019t to pass a vocabulary quiz. We just want to be able to keep up with the conversation or understand the FAQ. No pressure.<\/p>\n\n\n\n

Payment Provider, Payment Processing, and Payment Gateway<\/h3>\n\n\n\n

Q:<\/strong> What is a payment provider?<\/strong><\/em><\/p>\n\n\n\n

A: <\/strong>The payment provider<\/em> is the company you choose to handle your electronic transactions \u2013 especially credit and debit cards. The primary service most small businesses are looking for is payment processing<\/em>.<\/p>\n\n\n\n

Your payment provider generally provides you the equipment, software, or other system for validating customers\u2019 card information and communicating with the appropriate financial institution to make sure they have enough credit or a high enough balance to make the purchase. It\u2019s the provider\u2019s responsibility to detect fraud and to protect both you and your customer from shenanigans.<\/p>\n\n\n\n

Q:<\/em><\/strong> What is a Payment Gateway?<\/strong><\/em><\/p>\n\n\n\n

A:<\/strong> A major part of making this happen is a reliable and efficient payment gateway<\/em>. The gateway is how information is able to pass securely and quickly from your customer’s card to the processing institution and back to you. The term can refer to the equipment, the process, or the technology itself.<\/p>\n\n\n\n

Q:<\/strong> What is a Payment processing?<\/strong><\/em><\/p>\n\n\n\n

A:<\/strong> Payment Processing is a service. It requires expertise and sophisticated technology to do properly. Presumably, you\u2019d like them to be communicative and efficient as well. That means it\u2019s usually not free. You charge for your expertise, goods, and services, and so do quality payment processors. It shouldn\u2019t make the process unprofitable, of course \u2013 just make sure you pay attention to all percentages, fees, and potential additional charges.<\/p>\n\n\n\n

Payment Services \/ Payment Systems<\/h3>\n\n\n\n

Some payment providers offer various services or service packages. These options are generally referred to as payment services<\/em> or payment systems<\/em>.<\/p>\n\n\n\n

The most familiar example of this for most newcomers is PayPal. You can use PayPal to send or receive money for a minor fee \u2013 that\u2019s one payment service. If you\u2019re a merchant, you can use PayPal Here to accept a variety of payment types, from credit cards to Apple Pay or Google Pay. That\u2019s another payment service (or payment system). If you want to accept online orders, PayPal\u2019s PayFlow lets you do that securely, making it a third payment system. Each of these are offered by the same payment provider \u2013 PayPal.<\/p>\n\n\n\n

ACH Transfers<\/h3>\n\n\n\n

ACH stands for \u201cautomated clearing house.\u201d Honestly, though, it\u2019s probably best to just put that out your mind as soon as possible. (I can\u2019t help but think of either big box discount stores or Ed McMahon handing fictional families giant cardboard checks when I hear the full term.) Instead, let\u2019s focus on what it means in practice.<\/p>\n\n\n\n

Q:<\/strong> What are ACH Transfers?<\/strong><\/em><\/p>\n\n\n\n

A:<\/strong> ACH transfers are simply how money is moved between different accounts and different banks electronically. If you get paid via direct deposit, you\u2019ve used ACH transfers. If you pay bills online, you\u2019ve used it as well. Some businesses use ACH transfers to pay their suppliers or make deposits into employees\u2019 retirement accounts. For our purposes, it\u2019s just money moving through wires.<\/p>\n\n\n\n

Merchant account<\/h3>\n\n\n\n

If you\u2019re selling goods or services using an online payment service, you\u2019re required to set up a merchant account distinct from your existing business bank account \u2013 although it can be through the same institution, if they offer such things. Funds from any online transactions are deposited into your merchant account, and eventually into the business account of your choosing.<\/p>\n\n\n\n

Merchant accounts come with their own fees, often based on your business\u2019s history and credit rating. They may be offered through your payment provider, your existing financial institution, or a third party.<\/p>\n\n\n\n

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