What is the best payment method for small businesses? It maybe depend on many factors. When you consider the best approach, consider the size of your transaction first. In this article, let us explore the online payment options for small business and payment processing tools that may be suitable for your company.
Types of payment methods for small businesses
The first thing you need to decide is what types of payments your business can accept. Generally speaking, there are four online payment methods to choose from:
- Bank transfer
Bank transfer, also known as wire transfer or credit transfer, is a method of electronic funds transfer from one person or entity to another. A wire transfer can be made from one bank account to another. The consumer is provided with a unique reference number and details of the bank account where they can make their payment. The whole process is very safe and secure, as both account holders must have a proven identity and there is no possibility of chargeback. Bank transfer is very advantageous for shoppers who do not have a credit card, or do not want to use it to complete a distance sale payment through internet, telephone, or mail.
- Credit card payment
Credit card payment is a way for customers to voluntarily use their credit card to pay to the other’s account via the Internet. After the payment is successful, the payment will immediately enter the account provided by the merchant. The credit card payment method is more flexible and has a wider range of use. There are several ways to use a credit card to complete payment. The first is similar to direct bank transfer, which directly transfers the money from the credit card to the bank account provided by the other party; the second is that the payment can be completed through the credit card payment channel. The third-party payment company, which uses the payment to the third-party payment company’s account, and then the third-party payment company remits the payment to the designated account, this method is a relatively mature payment method that mainly used in online business trade.
E-wallet is a part of Secure Electronic Transaction (SET), a computer software used to allow consumers to conduct electronic transactions and store transaction records. Before consumers can conduct secure electronic transactions on the Internet, they must first install an electronic wallet that meets security standards.
There are two concepts of electronic wallets: One is pure software, mainly used for online consumption and account management. This type of software is usually connected with bank accounts or bank card accounts. The second is the smart stored-value card for micropayments. The cardholder deposits a certain amount in the card in advance, and the transaction amount is directly deducted from the stored-value account during the transaction.
- Mobile payment:
Mobile payment means that mobile clients use mobile phones and other electronic products to make electronic money payments. Mobile payment effectively combines the Internet, terminal equipment, and financial institutions to form a new type of payment system, and mobile payments are not only capable of making money payments. You can also pay living expenses such as telephone bills, gas, water and electricity. Mobile payment has created a new payment method, making electronic money popular.
Online payment methods for small business
Online payment is an emerging technology that can help you get more customers, reduce expensive costs, and simplify the accounting process. But it is wise to find the best online payment method for small businesses to find a solution that suits your needs.
The security of online payment is guaranteed by the bank. When the user chooses online payment, when he needs to fill in the bank card information, he has actually left the server on this site and arrived at the bank’s payment gateway.
Major payment brands have also made unremitting efforts in this regard. Taking Visa as an example, Visa’s strategy to ensure the security of the payment industry is to promote closer cooperation and communication between relevant stakeholders and implement multi-level security protection. In short, safety is a responsibility that needs to be shared. There is no “magic bullet” that can kill it all. Visa believes that the security of the entire payment industry is not measured by the security measures taken, but determined by the weakest link in the payment system. In other words, improving the anti-risk ability of each weak link in the payment system is the best way to effectively ensure the security of the entire payment industry.
Choosing the Online Payment Processor for your business
Ultimately, the payment method you accept in your business will depend on your business model and your customers. The best payment solution for your small business should be affordable and able to provide your customers with multiple payment methods to improve the flow of funds.
After years of intensive work in the online payment industry, Oceanpayment combines advanced global digital payment technology to create a one-stop payment technology solution for small and medium-sized enterprises that is in line with the development trend of global e-commerce.