When it comes to acceptable online payment methods, there are many to choose from. With this, merchants need to look at which online payment method is best for their business, their customers and their revenue.
Different payment options charge different monthly fees as well as sliding scales for higher turnover.
We look at leading online payment options to see how they currently stack up.
The Best Online Payment Methods for Maximizing Revenue
According to businessinsider, small business owners who want to accept credit card and online payments can expect to pay between 2.2% and 3.5% per transaction.
Techradar reports that some payment gateways are simply a way to charge cards. Fees charged to the merchant can be anywhere between 1.4%-3.5%, with no monthly fees. But, we must note that if you have a merchant account, then processing fees are significantly reduced to around interchange fees, and come with monthly fees.
Merchants should offer debit cards payment as, according to Higherstandards. The interchange rate merchants are charged for debit card transactions is substantially less than those for credit cards. “This is due to a number of factors, chief of which is that debit cards are less of a risk.”
EFT and instant EFT
Similar to debit cards, EFT and instant EFT transactions are deducted directly from the cardholder’s bank account. Merchants are not charged on every EFT payment or instant EFT transaction. However, some online EFT, and instant payments will require small fees from merchants to accept the transactions. This option is a great way for merchants to up the revenue and avoid costly fees that eat away at your profits!
Another popular payment option is mobile money. Customers use their mobile devices to make these payments.
Quickbooks points out that mobile payments can encompass a range of payment options which include payments made through digital wallet apps and money transfer apps. They can also come from near-field communication technology and through a mobile card reader to swipe debit or credit cards.
“Mobile payments facilitate mobile transactions using a method of payment, like cards or electronic money transfers.” These come with lower-than-industry fees and won’t cut into your revenue too much.
One Of The Best Online Payment Methods: Buy Now, Pay Later (BNPL)
Merchants benefit from these interest-free platforms with a small fee per transaction. As a great payment method for merchants and shoppers, we recommend this payment option.
Techradar states “For low volume sales a simple payment gateway will be the most effective option in the short-term, as processing fees are lower. For monthly sales, once sales volume reaches a critical threshold it automatically becomes cheaper to pay a monthly fee for merchant processing with interchange fees.
Diversify Your Online Payment Methods With Payflex Today
If you’re looking for the best payment option for eCommerce, and one that doesn’t eat into your profit, you need Payflex. Not only does it offer your customers a revolutionary way to pay that can increase your profits, but it’s also safe and secure and easy to use.
Furthermore, it can help you gain more customers, cut out those expensive costs you’re trying to avoid and it will also help you simplify and fasten your accounting processes.
Sign up for Payflex now!
Contact Payflex to open a merchant account in 2022 and start using it as one of your online payment method for your store.