Small businesses and startups are thriving on payment processing solutions. The range of companies using payment processing technology starts from traditional to modern fintech startups.
And, with online transactions and shopping becoming the new normal, it's essential to integrate your business with a system that provides your customers with the best service.
Plus, the digital age of online shopping is flourishing and so the need for business owners to facilitate payment methods is growing.
According to stats from Statista, in 2018, more than 8 billion people purchased goods online. Additionally, most experts have predicted that retail sales by 2040 will only hold online transactions.
Most small companies and merchants know about credit card payment processing, but new trends have emerged due to rapidly multiplying payment methods like Google Wallet, Amazon Pay, Apple Pay, UPI, E-Wallets, Mobile payments, etc.
The payment options are great for customers, but small businesses have to wade through cost-effective payment processes to engage new customers.
Moreover, as most Points of Sales services have gone digital now, choosing your online store's digital wallet may be tricky.
Your brick-and-mortar store or small business needs an online payment processing system that integrates your business needs. A system should share customer information and revenue data alike.
Integration with a Payment Processing Company
When you make online payments through credit cards, debit cards, or other payment modes, the payment processing company handles the transactions on your company's behalf.
- It directs the information to the bank and the customer's bank. Following this, it verifies whether the transaction is valid or invalid.
- Most importantly, a payment company connects buyers, sellers, banks, and card network companies.
- It lets you experience a smooth flow of transactions with all the parties involved while making your online transaction more secure.
- There are many payment processing solutions you can choose for your business.
13 Payment Processing Solutions for Small Businesses
1. Square
Square is the most popular payment processing solution that offers simple integrations. Thanks to its intuitive and innovative mobile card reader, it allows accepting payments from any part of the world, converting your mobile phone into the POS system when you make payments. Additionally, it provides deposits on-demand and a fraud protection system.
Plus, you can build customized registers, track inventory, and view sales reports. It lets you manage the timesheet of the record payments. The best part - it charges only 2.75 percent per swipe on the credit card payments. Integrate with the platform without add-ons.
Website: www.squareup.com
2. GETTRX
GETTRX is a payment platform that suits all your business needs. It offers online and in-person payments with POS options that can be customized according to your requirement.
The payment solution offers transparent billing features with competitive rates backed by the industry's best platforms. In addition, GETTRX uses integrations and tools to make payments faster, from flexible payment options to real-time onboarding.
Plus, it provides flexible solutions that reduce your compliance requirements. The flexible options can help to enhance your customer experience. It also streamlines your non-profit solutions that track multiple campaigns and causes. GETTRX charges 2.79 percent plus 30 cents.
Website: www.gettrx.com
3. Stripe
Stripe lets you pay for the usage and supports more than 100 currencies, and supports bitcoins and ACH transactions at a starting fee of $0.8. Stripe has gained a lot of attention for its less complicated payment model.
There are no setup or monthly fees, so it is an ideal payment processing solution for startups. Additionally, it comes with a data and reporting feature that lets you track information on a real-time basis.
The company offers web and mobile payment solutions built for developers. With a set of APIs and business tools, you can enable your business to accept and manage online payments.
Website: www.stripe.com
4. Bolt
Bolt offers a simple click checkout feature to increase sales and convert 50% more customers. Plus, it comes with a 100 percent chargeback guarantee and access to millions of shoppers on its network.
You can easily integrate with the solution, as it's flexible to implement. Moreover, it connects seamlessly with many E-commerce platforms like - Magento and Bigcommerce. You can use the single-click feature of Bolt upon integration and let shoppers check out in seconds. It makes online payments trustworthy for customers.
If you are looking for a payment solution for an eCommerce platform, you can trust Bolt as it offers the best features. Bolt charges 2.9 % plus 30 cents.
Website: www.bolt.com
5. Authroize.net
Authroize.net is the best payment solution to accept credit card payments online, in person, or over the phone. It focuses on customized business solutions - letting you choose according to your business needs.
The platform has a base of 430,000 merchants, which makes it the most trustworthy payment platform. In addition, it handles more than 1 billion transactions every year.
There are many added features of the payment company like - security and fraud prevention tools, recurring billing, and the ability to sync with the QuickBooks. However, there is a setup fee and a monthly gateway fee for the transactions. It charges 2.9% plus 30 cents with no setup fees.
Website: www.authorize.net
6. Dwolla
Dwolla is a Fintech payment solution company that focuses on account-to-account payments. It comes with a standard code API and a robust platform that offers an ecosystem that simplifies the complex integration process with payment networks worldwide.
Most importantly, it lets you create a single end-to-end solution that saves time. By integrating with Dwolla's technology, you can program your business to make real-time payments.
Additionally, it lets you add payments to the debit cards 24/7. Startup companies and small companies with limited cash flow can gain from Dwolla integration. It's time you think out of the box. It charges 0.5% per transaction.
Website: www.dwolla.com
7. BlueSnap
BlueSnap is a payment solution that looks at your business differently. It offers an all-in-one payment management platform that helps small businesses to accept payments globally.
Plus, the features are designed to reduce costs and increase revenue. BlueSnap provides complete backend solutions that simplify payments. In addition, it helps you manage the process from start to finish.
Additionally, it supports multiple payment modes, including mobiles, eCommerce, subscriptions, and invoice payments through a virtual terminal. It supports more than 100 currencies and 100 global payment styles with chargeback management and a fraud protection system.
Other features include - integration with popular e-wallets, accounts receivable, and a built-in solution for tax compliance. BlueSnap charges 2.9% plus 30 cents.
Website: www.home.bluesnap.com/
8. WePay
WePay is a simple payment processing solution that integrates with the look of your business. In short, it makes a brand extension. With WePay, you will be able to customize confirmation emails, checkout forms, customer support emails, credit card statements, and access to mobile transactions.
Moreover, it provides the on-the-go capability to access the mobile chip card reader and mobile SDKs, making it easier to embed payments into the mobile app.
Also, WePay's integration with Apple Pay and Android Pay for the web ensures higher conversions. In addition, it offers a wide range of add-ons that supports the platform's specific needs. WePay charges a fee of 2.9% plus 30 cents per transaction.
Website: https://go.wepay.com/
9. 2checkout
2checkout is the best option for integrated and global payment solutions. Plus, it offers secure payment solutions and compliant gateways in more than 85 currencies. It provides mobile and online payment platforms with hosted checkout and recurring billing features.
Additionally, 2checkout offers features like fraud protection and integration with eCommerce stores. With 2checkout, you can accept all the major credit cards, PayPal, and other modes of payment.
It charges a transaction fee of 2.9% plus $0.30 per transaction, but it depends on the mode of payment. There is no monthly or setup fee with 2checkout.
Website: www.2checkout.com/
10. PaySimple
As the name suggests, it lets you accept various modes of payment and streamlines the billing process. In addition, it provides bank-to-bank transfers via ACH with an acceptable credit card and cash flow reporting.
Plus, it offers secure customer contact management and mobile payments through a credit card reader. Also, the PaySimple mobile solution lets you accept mobile payments through a mobile credit card reader.
It allows customers to enter their bank account details securely and helps to sync mobile payments with customer profiles. Simply put, it reduces the need for reconciliation to save time while charging 2.49 per transaction with minimal monthly fees.
Website: https://paysimple.com/
11. Clover
Clover offers customized point-of-sales payment tools. You can integrate the payment processing system into eCommerce platforms, Counter service restaurants, and retail service organizations. Additionally, the platform's technology stack can handle mobile app integrations and invoices.
During the pandemic, Clover upgraded the services to suit the requirements of the digital age. Customers can accept payments from any part without the POS device with the virtual terminal feature of the platform.
For the actual POS system integration, you can lease or buy clover Mini, Clover Mobile, or Clover Go. Moreover, you can also accept a multi-payment platform. As for online payments, it charges 3.5% plus 10 cents.
Website: https://www.clover.com
12. Venmo
Venmo is a PayPal-owned payment processing company that allows you to request, send, and receive money via the Venmo account. You will be able to send the money into the person's account and link your cards and bank account details.
Also, a direct money transfer can be done from your Venmo account. Plus, it is available through Google Play and the Apple App Store. It is free when you make payments via bank accounts. However, for all the credit cards and some debit card transactions, it charges a 3% transaction fee.
Website: https://venmo.com
13. Wave
Wave is considered the best payment processing solution for small business needs. It can track income and expenses and create professional invoices. In addition, it lets you accept credit card payments at a flat 2.9% plus 30 cents.
It is a known fact that how you accept payments can make or break your business, so you choose to fit your core business requirements. Once you decide on the features, choose a solution based on cost.
Website: www.waveapps.com/payments
Factors to consider while choosing a Payment Processing Company:
1. Payment types
A payment processing company should provide your business with multiple ways customers can pay you.
- Look for all the options that are available in your location and country. Additionally, look for multi-currency options if you want to expand your business globally.
- Apart from debit cards and credit cards, the company should let you accept multiple payment ways, including mobile wallet payments:
2. Customer support:
Customer support is essential if you are stuck with payment issues. It's always better to look for customer support that is reliable and trustworthy.
The support team should be professional and knowledgeable. Also, it should offer you 24/7 customer support.
3. Contract:
Most payment processing companies don't require a long-term contract, or they don't charge an early termination fee.
Once you integrate with the company, they may allow you to pay monthly, which is a good deal for startup companies. However, bigger companies may require you to sign a long-term contract of 5 years.
In this case, you will have to research properly and ask if you need to sign a multi-yearly contract.
4. Technology used
A payment gateway that encrypts the financial data during transactions should be secure.
- Some payment processing companies develop their gateways, while some offer third-party integrations.
- For brick-and-mortar locations, you will need tools like - a credit card terminal, a mobile for on the go, and a point of sales system.
5. Costing
Costing is the main factor to consider while choosing a payment processing company.
- The average fee may range from 1.5% to 3.5% - depending on the transaction. Besides, some companies may charge a flat monthly fee, not a transaction fee. Also, there can be added chargeback fees you will have to look into.
- Small business companies that intend to grow their customer base must focus on feasible payment processing solutions offering easy integration and flexibility.
It's time to review the different options available to make a definite choice. Plus, if you are aware of all the options available, it will become easier for you to decide which one fits your business needs. This way, you can accept payments more affordably and efficiently.
Also, look for new updates and technology in the payment processing solution. Expand your payment processing capabilities to suit your preferences.
Finally, look for reviews and ratings before you choose a payment processing solution. Reviews can give you insight into the features of the company.