Web-based businesses that accept online payments for the products or services they sell through their site have an edge over competition. This is since customers who buy products on the Internet find it convenient to pay their purchases instantly and receive their orders immediately. For this reason, more companies are offering the same service, including it in their system. Fortunately, the new security features, fraud protection and encryption allow consumers to make online payments with confidence. As a matter of fact, the majority of people believe that paying online is a lot safer than paying a check through the slow, regular mail.
The facility to pay online allows a customer that has an email, to pay at once for a service. When a payment is made on the Internet, it is approved, then the money is immediately placed in the business account. This removes the financial risk on the side of the business, since you do not have to worry about bouncing checks.
When clients pay by means of checks or money order, they should have sufficient funds to immediately pay for the service. Credit cards let consumers pay for large or expensive items in installments. Therefore, accepting online payments can significantly increase your profit, especially if the services you offer are pricey.
Most consumers are concerned about the security of paying products or services online. According to analysts, there are more concerns when it comes to handing over a credit card to a sales person. This may be riskier than keying in the credit card number into a website with integrated encryption technology. Encryption reassures customers that their personal and financial information stay confidential. This assures the business that the data has not been altered.
Traditional billing can cost around 9.5% of the amount of purchase. Paying online can save both businesses and consumers a considerable amount of cash. They can save on postage, paper, direct costs and late fees. Businesses can also reduce indirect costs like customer service, accounting and administrative costs.
Paying online comes with some costs. Accepting online payments via PayPal has a charge of 2.9% or lower and a small transaction fee. Credit cards acquire processing fees of about 2% of the purchase amount. These fees are considerably lower than traditional billing costs. Adding online invoicing can let a business incur more savings.
According to an American global payment company, 26.7% of all online payments were done on a mobile gadget, which is a 5% increase since December 2014. There appears to be an easing of the growth. With this significant growth, it makes sense for every business to add an online payment system to accommodate all mobile users.
If your online business offers services without an online payment system, it is about time to consider it.
To boost efficiency, choose a solution that provides both online payments and online invoicing. Using electronic invoicing makes it more convenient and quickly expedites the payment process, especially when there is a “pay now” button on the invoice.