Why offer online payments for your invoices?
Businesses with outdated payment options may miss out on potential customers looking for digitally savvy businesses.
When choosing a payment provider, make sure you do your homework. Ensure you select a partner that understands your business needs and can grow with your business. Pricing, support and integration with your accounting system should be part of your selection criteria.
Online payment options for your business
Debit and Credit Cards
Offering Debit and Credit Cards as an online payment option is now the norm instead of the exception. Most online payments system will streamline and simplify your accounting by integrating with Xero as a payment option. Offering online payments can prevent human error issues that often come with cash payments, automate your refund process and streamline your bookkeeping.
Some businesses are wary of the transaction fee they incur when offering online card payments. If cost is an issue, look for providers who provide the flexibility of passing on fees to your customers through surcharging.
Digital wallets: Google Pay and Apple Pay
Digital Wallets allow users to store their banking information and identity documents on their mobile devices, replacing the need to carry around a physical wallet. The Digital Wallet adoption rate is soaring, and this trend will likely continue. Between March 2020 and March 2021, the number of monthly digital wallet transactions increased by 90 per cent, rising from 36 million to 68 million in Australia alone.
Most users are familiar with using Digital Wallets for tap-and-go or online shopping payments. Businesses may not be aware that they can add Google Pay and Apple Pay as payment options to their Xero invoice.
Direct debit allows you to debit funds directly from your customer’s bank account. However, this payment method can come with additional administrative work, such as setting up a Direct Debit authority form between you and your customer.
Direct debit is most suited to scenarios where you’re charging customers on an ongoing basis (e.g. weekly or monthly). Card payments are more appropriate for one-off or irregular payments.