As the world moves ever further away from cash, your customers will expect the option of online invoice payments.
What are the options?
There are three main ways your invoices can get paid online. It’s important to know which of these are right for you and your customers.
Bank transfer (BACS)
This is where the customer directly sends the funds to your account using online banking. This is the cheapest option for the business. All that is required is for the business to provide their account number and sort code. However, for the customer, this is the most inconvenient process. It is also the most exploitable, as it is up to the customer to send the correct amount.
Credit/Debit card
The most common form of online payment is done from a card through a payment processor. With the increased popularity of digital wallets like Google/Apple pay, it’s become the go-to payment method for many people. There are various payment processing providers out there, popular examples include:
- Sumup – Provides payment links as well as offering e-invoices, but does carry a 2.5% transaction fee on the receiver.
- Stripe – This can be used to create your own e-invoices or payment pages. Integrates well with other software. Has a base transaction fee of 1.4% + 20p (2.9% + 20p for cards outside of Europe).
- Paypal – Has the benefit of being a well-known brand, meaning your customers will trust it. Also offers renowned protection for both parties in all payments. Has a transaction fee of 1.2% + 30p for domestic payments.
- Squareup – Offers both in-person and online card payments. An in-person transaction fee of 1.75%. An online transaction fee of 1.9% (2.9% for cards outside of Europe).
How can they help?
Accepting online invoice payments means that your customer can pay you as soon as you finish the job. This gives the customer no reason to pay any later, meaning you don’t have to waste time chasing after late payers. Most payment options are integrated within invoicing solutions, making it easy to keep track of your invoices and pending payments.
Another benefit is that the money is transferred immediately to your bank account, unlike a cash or cheque payment.
Are they safe?
Thankfully, online payments are incredibly secure for all parties involved. All online payments require an extra layer of authentication from the customer at the time of payment. This means that they can feel safe when paying you.