Payment methods for online businesses

Companies that do business online have many different options when it comes to payment methods. In this article, I will go over some of those options so you can make a well-informed decision on which payment method to employ for your business.

payment methodsFirst off, if you run an online store, you are in luck, since there are already quite a few payment methods you can take advantage of. It used to be that you needed to open up a merchant account to accept credit cards online. This is no longer the case, however, as payment systems such as Paypal allow you to accept credit cards with very little setup. Be aware, however, that transaction costs can eat into your profits. For this reason, if you expect to do a lot of volume, you may want to explore other payment solutions as well, even though most will require a bit of an upfront cost. As cryptocurrencies gain widespread usage, it may benefit you also to accept bitcoin at your online store.

On the other hand, if you don't sell anything online but just need to send money, the best ways are Paypal, online checks (called eChecks) and sending old fashioned checks by mail. Electronic payments on the whole are the quickest and most convenient, but one big downside of that convenience is that your transaction fees will be high. That's why I prefer to purchase high security checks from good checking companies like Deluxe and send checks by mail myself. (Get these coupon codes here if you want to buy some checks online using a discount on Deluxe checks.) However, be aware that some vendors will frown upon being paid in this manner. If that is the case, the eChecks offered by Deluxe Checks is one option you may want to consider. After doing the math, my preliminary findings are that if you write enough checks, you should save money and come out ahead, compared to using a service such as Paypal. Once again, if your vendor accepts bitcoin or another cryptocurrency, this would be one way to make payments instantaneously while avoiding transaction fees altogether.