When you’re running your own business, you need to find ways to get paid that are simple for both you and your customers. As you will have experienced when shopping yourself, when you are making a purchase through a quality business you get payment options. You can buy instantly online, over the phone or at the point of sale. It’s great, it’s easy, it’s efficient.
So as a business owner, wouldn’t you like to cash in on those same easy, streamlined credit card payment options, while also boosting your authenticity and reliability as a small business? No one will know you are a self-running start-up if all your business transactions look and feel as sleek as the pros.
If you haven’t looked at how you can increase your flexibility of getting paid through credit card transactions, I’ve put together a list of providers I really like and recommended in my courses.
You are probably familiar with all of these through being a customer yourself, which is great, because you know how they feel as a customer, which will give you an edge when you are making your choice.
It’s cheapest and more efficient to run one system, so don’t get too caught up in trying to please everyone. Take your time, do your research and figure out what systems are going to best represent your business and suit your customers.
Four different ways to get paid via credit card
- Online
The biggest and most trusted online credit card payment gateways are Paypal and Stripe. These online merchants are basically inbuilt credit card machines with super strong security. They act as a third party so that the customer’s credit card details and your bank details are never revealed. You get the payment, they get peace of mind and an easy payment process to go through.
To set up a PayPal (or similar) account as a business owner all you need to do is provide the details of your business, proof of identity, and provide your business bank details. If you are running your business from your personal bank account it’s a great way to conceal the bank you belong to and your personal identity (if that is not something your customers need to know). As far as they are concerned they are dealing with a company, not a person who is the company.
I like this system because they do the work for you and you can apply it to anything web based. You also have tech support and assistance if something goes wrong. In terms of actually using it, it’s already been set up all you need to do is select what BUY buttons you want to create and add it to your webpage, Facebook or newsletter. Options include “buy now”, a shopping cart and payment plans. You can use as many or as few as you like/need.
You will be required to pay a percentage of your take to the online merchant. The rates vary, just like interest rates. Before you decide on this one, calculate how much per item you would need to pay in fees and see if that can be added to your product or service cost or if it is small enough (and the system good enough) that the ongoing costs are worth it.
To get the most recent fee data you can do a web search for the current fees for your chosen credit card merchant. Be sure to include your country (i.e Australia) as the fees do vary internationally. Basically you can expect to forfeit around 2.6% of the payment made with added standard fees for smaller transactions (i.e an extra 30 cents for payments under $2500).
This is good for products and services that are seen, shared and sold online.
- A Bank
You see this at just about every retail outlet, most restaurants and grocery stores. The EFTPOS machine. Electronic Fund Transaction Point Of Sale.
These are super professional and handy because they are fully portable, great if you are at a show, stand or event. The only issue is getting an EFTPOS machine is a pretty big commitment so definitely know what you are getting into. Of course, if your commitment is 100%, you’ll get it done with some focus and determination.
In this case, you still have a merchant gateway, which is your bank. With that bank you open a merchant account. A merchant account with a bank gives you access to credit and debit card payments.
As well as EFTPOS payments you can also type a customer’s credit card details into your own bank account (using a login). All you need is their card number, card expiry and CCV (just like making an online purchase) the money is instantly debited. This is a safe option for your customers because all your transactions will link directly to you, your account has been checked thoroughly, you’ve jumped through a few million hoops as a small business owner to prove that you are capable and trustworthy. So there can be no dodgy dealings. To help your case, apply with your usual bank first. Showing you are a loyal customer with a long history of banking with them can make a difference. Also, bring your product for proof, it’s a great time to practice your elevator pitch.
As well as being easy to use and great for ‘Point Of Sale’ transactions it’s also cheaper than the online merchant gateways (more like 1% – 2% each transaction). Keep in mind new laws prevent you from adding an additional fee after the sale, so be sure you have already absorbed the costs in your prices advertised if you don’t want to pay the cost of the fee from your profits.
This works well for people who have a physical presence, like a store and a solid product with a delivery address and known supplier. Banks will especially love businesses where products or services are handed over when the purchase is made. If there is a delay between delivery time and payment there is potential for fraud, long delays or errors that lead to customer dissatisfaction and complaints. Remember, when the bank is your merchant you are advertising their brand as well as your own, you need to assure them that you will represent their business (and yours) honestly and with integrity.
- Direct Debit
Ezidebit is the direct debit payment system I use across my companies and also advise my Coach Now grads to use as a way of taking safe and structured payment plans from coaching clients. There are other companies similar to Ezidebit as well so look around and see what works best for you. These companies allow your customer to set up payment plans with direct debit and they also allow you to accept credit card payments. If you would like to have both an Ezidebit and Bpay online “buy now” button for accepting payments, you can accept Bpay through Ezidebit for a nice simple streamline approach. Simple work best and the easier you can make your systems, the more time and energy you have to focus on your customers and your service delivery.
This payment system is perfect for any service-based business, like coaching, personal training, tutoring, and teachers i.e. music, language or swimming lessons.
Accounts are simple to create and you are given prompts to ensure you have all the right data, and you can be notified when a payment has bounced so you can quickly follow up. In most cases you’ll find that there was a simple miscommunication on when payments would start or a new card was issued to the customer without them informing you or Ezidebit of the change.
The only real downside here is the listing on the client’s statement will read Ezidebit which might get confusing for them, especially if they are working with other businesses on Ezidebit as well. A conversation around what they can expect when their statement comes will help clear up any possible misunderstandings.
- Mobile Card Reader
I love this one. It’s fully transportable, it’s super easy, it’s cheap to use and you look super up to date as this is really on the cutting edge of modern technology. With a mobile card reader you can swipe credit cards on your phone and take tap and go payments with a contactless chip reader.
All you need to do is download the software and purchase the card reader (and these are cheap, like $20 to $30, you can get them from places like OfficeWorks). It simply plugs into the headphone jack of your phone.
The one I like is Square. The fees are low, around 1.8% per purchase, and the funds go directly into your bank account so you can see the transaction has been completed instantly. The money is made available in 2-3 days.
*Just note that the first time you use the service the time the funds will be available is slower, around 4-5 days. After the first purchase it’s half that. You will need to give yourself plenty of time to set up and learn the systems so I seriously advise that you don’t grab this on your way to meet a customer or host an event!
This is significantly easier than PayPal where you need to request the funds and can wait anytime from 3-5 days for the funds to be available from when you make your request.
You and the cardholder both need to be in the same place at the same time for Mobile Card Readers to work. It’s great for ‘we come to you’ home services, like plumbing and handyman, goods drop off, cleaning, massage, gardening, hardressing, dog washing. It’s also great to use in place of an EFTPOS machine at events or promotions, like a book launch, or when a client comes to your home for a service like coaching, dress fittings etc.
Mobile Card Readers are not suitabe for payment plans, just one off direct payments or deposits.
Apart from Square there is Payanywhere, and Paypal also have a card reader function if you are already with PayPal online which might be your prefered method.
Choosing the best ways to get paid
I know when you start your business you might have a different goal in mind, to change the industry, to educate people, to contribute something amazing or fill a gap of need in your community. It is important though that you do get paid, in order to keep making a difference to your life and others you need to have an income to improve and continue your services. So even if payment is not a big part of you business plan, yes you would do it for free, let’s make getting paid a big part of giving you flexibility and capacity to perform. Now let’s make that payment as easy as possible!
Stay troublesome,
Matt Catling
