Welcome to Invoice ayment processing systems

The choice of small business invoice payment processing systems can relatively have a significant impact in their growth and general acceptance.

Small business can offer their clients a range of invoice payment processing systems to help them pay faster for their services and even attract new businesses.

Therefore, it’s just reasonable that business chooses a payment processing system that is in tandem with their business model and meet the need of the consumers.

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It is advisable if businesses particularly, small entities can list all its accepted payment methods on their invoices, within the payment terms section of the document.

By doing that, you can prevent confusion among your customers which may result to slow down in the payment process.

What are the best 5 invoice payment processing systems for small business?

There are different types of payment method small business can adopt to receive payment for the product and services they serve. Below are the best five and most convenient and comfortable for small business.

Online payment

Small business can adopt online payments via credit and debit card to enable client to pay their bill easily and quickly. To accept online payments, you have sign up for an online payment platform such as; PayPal, stripe etcetera.

However, if you use a cloud base accounting solution, its better you accept the online payment directly through your accounting software.

Online payment is more flexible and quick to process and the payment is usually received in your business account within a short period of time.

It is also secured that protects you and your client. Although, there always an amount each transaction which is for service charge.

Bank transfer

Small business can also vouch for the use of bank transfer for the payment of invoices. That is, a direct transfer from your customer’s bank account to your business account.

To accept bank transfer for any service rendered, you have readily made your information such as; your bank account number, bank name and account name available.

Bank transfers are simple, quick and charges a very minimal fee. It is also another secure process of accepting payment from customers or clients.

Automatic payments

While many clients pay for service at the spot, there are some that would like to pay in a fixed time therefore; a small business should get its self ready to make provision for automatic payment.

Automatic payment charge client a specific amount on a specific day each month though, with the client’s permission.

It is a convenient option for your customers because, they set the payment schedule and don’t have to stress about how to come for the payment again.

Small business owners can accept automatic payment through online payment gateway or through accounting software.

Mobile payment

Mobile payment is another convenient payment process for small business especially for those that their services are carried out in work-site like; contractor, landscapers etc.

To accept mobile payments, you need a mobile payment reader that is connected with your Smartphone and processes payment through app like, square, palmpay, etc.

Mobile payment is reliable option and payment made through this method is received in your business account within few days.

However, you will be charged a transaction fee for each mobile payment transaction you process.

Cash and cheques

Despite the wide acceptance digital payment methods, there are some clients that still prefer the local way of paying for service which is either by cash or cheque.

This method has the merit of largely avoiding service charges. However, payment made by either cheque or cash needs the involvement of the admin, are inflexible and can be relatively slow. Late payers may go without getting caught because, there is no notification of overdue invoices as a result, cash flow may be impacted.

Credit or debit card

This is when a customer gives your business or company the permission to take funds from their credit or debit cards.

The customer have given you their card number either by phone  or in person that is connected or linked to their bank account by card networks and authorize the bank to take the money.

Payments via credit card are usually convenient payment process that offers certain level of security protection. To make use of credit card payment, you need to set up a merchant account in a bank and then, you will be charge for service fee per transaction or whenever a credit card transaction is authorized from a client by you.

However, there might be a payment failure in some instance. This may be caused by card been rejected, expired or get lost.

Factors affecting the choice of invoice payment processing systems for your business

All the payment process for small business has its pros and cons therefore, you will have to analyze all of them and select the one that works best for you and require lesser risk.

Below are some factors to consider before choosing invoice payment processing systems.

Cost

When evaluating a payment methods, consider how much is the charges for service fee. Many credit cards processing options charge whenever a transaction is authorized. Sometimes, there are additional cost associated with payment methods that require hardware for instance, in person credit card payments and mobile payment.

Security

You should make research to know how secure and safe the payment method is before adopting it. This ensures that both your business and clients are safe.

Cash or cheque payment methods offers low security as it is vulnerable to get lost or stolen while online payment has a reasonable security level and encrypted data that protect your client and ensure you receive the payment on time.

Convenience

Give consideration on comfort-ability before accepting any payment methods.

For example, if you choose to accept payment by cash where you have to go to the bank to deposit them back in your business account at the end of the day, you will have to go through a lot of stress and in the time need of the money, the bank may not grant you an immediate access to the money as well.

While online payment option require almost no work on your part and the money paid into your account appear in your bank in a short time.

This is it about the invoice payment processing systems for small business owners. I believe the same applies to the medium and big businesses.