In the last ten years, digital online “Merchants” such as PayPal and P2P (peer-to-peer) payment apps like Venmo have emerged that promise to make your life easier, but is that really the case? The Credit Card Payments for Small Business series aims to demystify the world of digital payments. In three short 3 to 5-minute reads we will compare traditional payment methods against new methods. We will dig into the pros and cons of each payment platform alongside each other with helpful infographics to help you decide which is best for your business to play ball.
We’ll cover the following topics in the days to come:
Traditional Merchant Payments
While traditional credit card processing merchants lack cutting-edge technology like their digital counterparts and are often clunky to incorporate into a website, for some, that’s okay because they are reliable in their results: putting money into the bank. However, a set-back for traditional card processing merchants is their less-than-transparent breakdown of transactions in ten-page-long itemized merchant statements. This series will help you decide whether to abandon this method or make it par for the course.
Payment Service Provider (PSP) or Online Payments
Now that the world has moved online, so has taking payments. PayPal, Square and others like it have taken advantage of the secure end-to-end encryption methods provided by Silicon Valley. With an effortless setup, your customers can pay for an item with a mouse click. But while click-to-pay is efficient for taking payments, you may alienate your longest, most loyal customers with confusing payment portals. We discuss whether adopting a new payment methods is worth punting the ball with confusion for the less-than-tech-savvy or older generations.
Mobile Social Payments or Peer to Peer (P2P)
Social payments or peer-to-peer payments, like Venmo and Zelle, are new to the arena. These platforms are geared toward employers on the go, or smaller operations. Where there isn’t a lot of accounting functionality required by the business owner. Convenience is key with peer-to-peer payments. P2P is less feasible for big league businesses, if refunds are a regular part of the business. In this installment, we’ll look at whether increased agility is a benefit over limited functionality.
Stay tuned as we reveal the advantages and disadvantages of each method so that you can knock payments out of the park.