Swift And Simple: How to Accept Payments Online?

You can run any type of business from online fitness classes to children's daycare. But do you know which is the most time-consuming and risky area? Yes, payments! As a business owner, you should always make it a point to provide the most convenient experience to your clients throughout their buying journey along with making it safer to transact.

Payments being a crucial part of the client journey, you should never mess up with it. So, if you think about enabling online payments for your clients, you’ll have questions like, “How do I start with online payments?” and “Why do I need to integrate online payments?”

As an entrepreneur, you should be crystal clear about the latest payment methods and best payment providers like the back of your hand. So, this article is here to guide you through various payment options that businesses should follow these days.

Come on, let’s dive in!

What Are Online Payments? 

Online payments are contactless payments that require no involvement of physical cash and can be conducted by electronic devices. As we know, online payments can be done easily from any device and from anywhere.

According to G2-

“Online payments are the exchange of monetary funds between buyers and sellers via the internet. This software feature helps perform a majority of purchases and sales conducted on the internet.”

What Are The different Terminologies For Describing Online Payments?

Now, let’s learn about the different terminologies that are used widely to describe online payments. As an entrepreneur, you need to stay well informed about the terms used in recent times. So, let's have a look at them now 

1. Payment Gateway 
2. Payment Processor 
3. Payment Provider 
4. Payment System
5. Merchant Account 

Even if all the above terms describe online payments or are mostly used interchangeably, yet they have minute differences. Let's read further to know about them:

1. Payment Gateway 

A payment gateway serves as a seamless link between the merchant and the payment processor. It functions by securely transmitting all payment data, overseeing transaction authorization, and encrypting and transferring customer payment details. This gateway manages authorization requests and effectively communicates transaction status back to the merchant.

2. Payment Processor

A payment processor manages the actual transaction process by receiving authorization requests, verifying payment details, and communicating with banks or card networks for approval. It validates and processes transactions, ensuring funds are transferred from the customer's account to the merchant's account.

3. Payment Provider 

A payment provider is a company that delivers a range of comprehensive payment solutions, including payment gateways, processors, and supplementary services. Their role is to equip merchants with a wide array of payment options, services, and tools, facilitating the seamless acceptance and efficient management of payments.

4. Payment System 

The payment system involves the entire infrastructure of transferring funds, including authorization, settlement, and clearing. It handles the end-to-end process of funds movement between parties, involving banks, financial institutions, payment processors, and customers.

5. Merchant Account 

A merchant account is a specialized bank account designed for businesses to seamlessly accept and process payments, especially those made via cards. This account temporarily holds funds from sales until they are subsequently transferred to the merchant's primary business bank account after the settlement process. 

Why Contactless Payments? 

People now prefer contactless payments to cash-driven payments since the advent of the digital era. When you think about why this transition has happened so quickly, there are a variety of reasons that support this, such as:

1. Safety and Security
2. Convenience
3. Mobile Friendly 

Let’s take a deeper look at these now,

1. Safety And Security:

As new technologies emerge, concerns about safety always arise - what if our data gets stolen? Add a few more concerns.

This is where encryption plays a pivotal role, ensuring secure money transfers without the breach of sensitive information. Online payments offer a convenient alternative to carrying large sums of cash, avoiding the need to carry cash around. These digital transactional methods help guard against fraudulent transactions, providing us with a safe and secure way to carry out payment processes.

2. Convenience

When people used to pay with cash, they had to wait in long lines until they received the correct amount of change and manually filled out invoices. This tended to cause frustration and drained their valuable time which of course is not the best experience to have.

With contactless digital payments, transactions are completed within a matter of seconds, significantly reducing the potential for errors that could happen with manual payment methods. For instance, customers no longer need to search for cash or wait for chip-and-PIN transactions to conclude. This seamless process streamlines the checkout experience, reducing friction and abandoned sales.

Many contactless payment systems offer loyalty programs, allowing businesses to reward customers for repeat purchases. This encourages customer retention, improving brand loyalty for your business. Additionally, the simplicity of these payment methods makes them accessible to businesses of all scales.

Furthermore, these payment methods provide invaluable insights into customer behaviour and purchasing patterns. This, in turn, empowers businesses to effectively strategize and meet customer expectations. So, no more fumbling with traditional payment methods.

3. Mobile - Friendly

We all know that mobile phones have become an inseparable part of our lives. It's overwhelming how much they have changed the way the world functions.

Given that, digital payments made our lives easier by enabling mobile payments. Mobile payments provide a hassle-free checkout experience, making them a preferred option for both businesses and end customers. With the convenience of paying on the go, this transformative technology continues to redefine how we interact with money.

How To Accept Payments Online?

Let’s walk you through the simple steps of setting up a payment platform and starting your payment journey. The most important thing in retaining customers is by providing them with the most convenient platform for them to carry out their bookings or purchases. So, with the motive to provide them with a good payment experience, let's go on and discover the processes to seamlessly accept payments online.

1. Choose a Payment Gateway 
2. Setup your Account 
3. Integrate Payment Gateway to your Business 
4. Use Payment Links 
5. Use Email Invoicing 

Let’s read further to have a deeper understanding- 

1) Choose A Payment Gateway

In the world of business, there's no shortage of options when it comes to payment gateways, offering the easiest mode of transaction. These gateways ensure a seamless and secure payment process, with just a small fee for the exceptional service they provide. If you run a service-based business, integrating these versatile payment gateways will undoubtedly make your transactions simpler.

The most commonly used payment platforms around the world are: 

1. Paypal
2. Stripe
3. Paytrace
4. Razorpay
5. FPX 
6. Omnify Payments

1. PayPal

PayPal has built a rock-solid reputation as the go-to, trusted, and secure payment platform over the years. With a global reach, it offers a seamless solution for sending and receiving money. Users can easily link their bank accounts, credit cards, or use their PayPal wallet balance to make payments for various purchases hassle-free. The platform is incredibly user-friendly and charges small transaction fees for its services. The best part? No setup or monthly fees are required! As a true pioneer in the digital payment industry, PayPal is empowering countless businesses to streamline their payment processes and transactions, making life easier for all.

2. Stripe 

Stripe became a popular and favorite payment gateway among businesses due to its flexibility and advanced features. Stripe handles various payment methods, including credit and debit cards, mobile wallets, and alternative payment options, allowing businesses to cater to a diverse global customer base.

Also, it ensures secure payment with PCI compliance and tokenization, ensuring that sensitive customer data is protected. Stripe provides a variety of features, such as subscription management, invoicing, and customizable checkout experiences. These features make it an attractive choice for service-based businesses.

3. PayTrace

PayTrace enables businesses to accept various payment methods, including credit and debit cards, ACH payments, and contactless payments. This versatility allows merchants to accommodate a wide range of customer preferences.

One of the standout features of PayTrace is its encryption and tokenization, which protects all the sensitive information of the cardholder, reducing the risks of data breaches and fraud.

Along with this, PayTrace provides detailed reporting and analytics, allowing one to gain insights into business performance. It also offers a wide range of features, such as payment forms, invoice creation, and recurring billing options.

4. Razorpay

Razorpay offers a diverse suite of payment options, including the payment gateway, automated accounting, subscriptions, payment links, and Razorpay capital. With Razorpay, businesses can accept payments through various modes, including credit and debit cards, UPI, net banking, and digital wallets. Additionally, it serves as an easier option to carry out recurring payments for subscription-based businesses. Moreover, it seamlessly integrates with business websites, giving it a winning edge.

5. FPX Payments 

Financial Process Exchange is one of the most convenient modes of payment in Malaysia. It ensures secure payments directly from customers’ online banking platform itself. An added advantage of this mode of payment is that there are no additional fees involved, which makes it the most cost-effective method of payment. This method is preferred the most in Malaysia, as it does not require inputting card details

6. Omnify Payments 

Omnify understands the requirements of business owners very well and offers flexibility in almost every feature. When it comes to payments, Omnify Payments offers integration with a list of payment providers so that you can choose whichever way you want to get paid. Choose from Stripe, Paypal, Paytrace, and Razorpay. Get the most out of your business only with Omnify.

Gain a clear understanding of your business requirements and select the payment method that aligns best with your operational needs. 

To know more about Omnify Payments, Book a Free Demo. 

2) Setup Your Merchant Account 

Moving on to the next crucial step, it's time to establish your merchant account. This involves straightforward procedures, including the verification of your business account. During this process, you'll need to validate your business bank account, provide essential business information and contact details, and set up two-factor authentication. Once your merchant account is up and running, you're ready to seamlessly integrate the payment account with your business platform.

3) Integrate Payment Gateway To Your Website

Once you're done setting up your merchant account, you can easily integrate it with your business depending on the platform you use. Each of the platforms has different transaction charges based on your subscription. So, when you're picking a business management platform, make sure it's got all the nifty features that fit in better with your business.

4) Use Payment Links 

After you integrate your payment gateway with your business platform, they'll give you payment links which can be shared with your clients via emails, messages, and chats. For instance, with Omnify, you can send payment links to your clients via email, making it convenient for them to pay from the device of their choice.

So, Now you know how to set up an online payment platform and begin receiving payments. As we all know, whatever business you may be running, ultimately it's all about how client-friendly it is. You can bring in an exceptional client experience by simply making your business platform as user-friendly as possible. Choose a platform that offers a wide range of online payment options, with which you can gain a competitive edge in your business. Just get an idea of the different payment operations Omnify provides with our forever FREE PLAN!