Collecting the Money: An Intro to Payment ProcessesPosted by sabrina
This is a guest post by Megan Webb-Morgan of ResourceNation.com
You have a business plan, and you’re all set to start earning revenue. But there’s still another decision to make: how will you collect payments from your clients? There are a number of different ways that your business can accept payments from clients and customers. While there are enough options to make your head spin, the type of payment process you use will depend upon on your industry, your business needs, and your customers.
Mobile and Ecommerce
Retail websites typically accept credit and debit card payments through a secure online payment portal. You can set up a secure credit card processing page on your ecommerce website that processes cards through your business’s merchant account. Third-party payment processing services can also accept and process credit cards on behalf of your business.
In-Person Customer Sales
A traditional retail POS system can process credit card, check, and cash payments through one central system located on the premises of your business.
- According to the US Small Business Administration, over $50 million in bad checks are written daily. Protect your business by utilizing a check verification service or ACH processing.
- If you complete sales outside your store, a virtual terminal on your mobile device can process payments from anywhere.
Business to Business
A traditional B2B service company has a variety of different needs than those that serve consumers. Because you foster a long-term relationship with your clients – rather than a single purchase – you will likely need a specialized system that can automate recurring payments.
- Look for payment software that is geared towards the needs of companies that engage in business-to-business. Make sure the program you choose is able to integrate with your current lead generation of customer relationship management (CRM) software.
All credit card processing systems must comply with the Payment Card Industry Data Security Standard (PCI DSS) for protecting customer card information. No matter what kind of payment process you use, you must ensure the physical and virtual security of your terminal, network connection, and processing software.
Megan Webb-Morgan is a web content writer for www.ResourceNation.com. She writes about small business, focusing on topics such as traditional POS systems. Follow Resource Nation on Facebook and Google+, too!