What Are Payment Options for Small Businesses

The best small business payment method depends on several factors. As you consider what's best for you, consider how many and how much your transactions are, who handles money, and which accounting system you have. A range of methods allow your clients to pay conveniently, so it's important to know which payment methods will work best for your customers so you can retain them and get paid quickly and easily.

What Payment Method is Good for Small

That depends on how your business makes sales. The main difference in the equipment and method you'll use is whether or not you accept payments online, in person at a mobile location (vendor fairs, mobile sales, etc.), or if you have a physical store that doesn't move. If you have a website, you'll need a payment gateway to facilitate and authorize payments, which might include credit and debit cards, eChecks, and other forms of payment.

Whatever payment method you go with, be sure to understand the security of your chosen method. If there is a security breach and your customer's information is stolen, that reflects badly on your business and can damage your reputation. You also want to remain compliant, so understand the legal implications of those payment methods, mainly if you operate across multiple states where laws may differ.

How Can Small Businesses Take Payments

In-store payment options are the terminals used at places like boutiques and sit-down restaurants. Mobile payment options are portable and used by landscape companies, food trucks, and others without brick-and-mortar locations. Both can offer the following forms of payment:

1. Credit and Debit Cards
   These are the most common payment methods, in person and online. They do have processing fees per transaction but have fast transaction speeds and strong security.
2. Bank Transfers
   Also known as ACH, this payment method is good for large transactions because it is more cost-effective than other methods like credit and debit cards. They do, however, take longer to process.
3. Bank Transfers
   Also known as ACH, this payment method is good for large transactions because it is more cost-effective than other methods like credit and debit cards. They do, however, take longer to process.
4. Digital Wallets
   Examples include Apple Pay and Google Pay. Digital wallets are a secure and convenient way to pay in person and require NFC (near-field communication) terminals.
5. Mobile Payments
   Just about everyone has a smartphone, so having this payment method for customers is convenient and provides great service. They usually integrate with digital wallets and are fast and easy. You'll need a mobile reader, which can plug into your phone or connect wirelessly and work with a mobile app to process payments from anywhere. You can also get a terminal to process mobile payments for a brick-and-mortar store.
6. BNPL Services
   BNPL stands for buy now, pay later. You've probably seen messages about paying over time for big purchases from companies like Klarna, offering to pay in several installments rather than all at once. Offering this service can increase the average transaction amount and volume because it makes products and services more affordable due to flexibility.
7. QR Codes
   This is especially popular in restaurants. Contactless and secure, they're a quick way to process payments without a physical terminal or cash. They also leave your staff free to continue serving other customers who still need help rather than continually processing payments.
8. Invoices
   Best for business-to-business transactions (services rendered, etc.) and can be paid online to simplify the process and improve efficiency. Consider CollectEarly^™, which allows your business to get invoices paid in hours rather than weeks.
9. Gift Cards
   You can build brand loyalty and drive repeat business with these

How Do I Set Up a Payment System for My Small Business

There are four basic steps to setting up a payment system:

1. Find a Provider
   All have different levels of service, pricing plans, and tech support in place, so take your time comparing and asking for referrals from other businesses to find one that's right for you.
2. Compare Pricing
   Don't just look at price; consider how many transactions each company allows you to process, whether you're required to buy or rent their preferred equipment, and payment processing times.
3. Open a Merchant Account
   Many banks offer business services to accept multiple forms of payment, keep track of sales, and more, all in one place. You can also have payments deposited directly into your business account.
4. Set Up Payment Terminals
   Whether you have a physical card reader or a payment gateway system to accept online payments, the vendor you choose will help you get set up and integrate your new system with the rest of the software you use (accounting)

What to Consider When Choosing a Payment Processing Service

There are a few main things to remember when choosing a vendor to accept customer payments. Some may be more important to you than others, but all are worth looking into.

1. Processing Fees and Pricing Structure
   Many payment processing companies charge higher fees for online credit card payments than in-person payments. Pricing structure varies from company to company, so it can be difficult to compare plans. Card processing can get complicated, so ask for a list of fees to review with the additional services and other add-ons the company might offer. Not all of them will be useful to you or your business, and you want to know how to avoid extra fees. This can also help you better compare vendors and plans, so you only pay for what you need while benefiting your business.
2. POS Features
   Different point-of-sale systems offer different features, some of which could be useful for your business. These include inventory management, analytics, and reporting, the ability to manage loyalty programs, and more. Ask which features are offered and consider which can help your business grow or operate more efficiently.
3. Scale
   Choose a company with a plan that can grow with your business. Will the plan and/or contract you choose allow you to upgrade if you experience increased transaction volumes? If it does, will that mean major upgrades or cost increases? Even if you are not expecting much growth over time, it's worth knowing, just in case.
4. Deposit Timing
   Payment processing companies will collect payment from customers and deposit that money into your business account, minus any fees. The timing of these deposits varies and can affect your cash flow, so ask what the usual timing is from each company you look into so you can compare.
5. Contract Length
   Some are pay-per-month, others require a multi-year contract. Choose the plan that's right for your business, and remember to ask what happens if your business outgrows the current chosen plan.
6. System Integration
   Your new system will only be valuable if it integrates with others you have, such as accounting, CRM, e-commerce platforms, etc. Easy integration saves time and money and reduces errors.
7. Customer Service
   Technology will always have challenges, so you want to work with a company that is happy to help you. Try to get opinions from businesses similar in size and transaction volume to yours to get a good idea of the service you might receive and ensure you can resolve issues as quickly and painlessly as possible. Last, consider simplicity since no one wants to use a complicated system!

Business Services and Perks of Being a WaFd Business Client

WaFd Bank offers a variety of products and tools to help you get your business off the ground or to the next level. This includes business term loans, lines of credit, business services with low transaction fees, the ability to process checks with remote check deposit, and business checking and savings accounts with low monthly maintenance fees. You'll find the tools you need to grow, such as:

1. Small Business Online Banking with WaFd Treasury Prime
   From online and mobile banking to remote deposits, we offer a wealth of Treasury Management services for your convenience. Watch a demo. Features of WaFd Treasury Prime include dynamic online functionality. You can see account balances, stop payments, check images, user administration, and previous and current transaction activity.
   
   
   1. Send payments using ACH, wire, account transfers, check printing, and Bill Pay. Our consolidated payments feature allows you to send all your payments in one convenient file.
   2. Sending information can be as easy or complex as you need it to be. Send files using FTP, SFTP, or WaFd Desktop Delivery. Send reports and account history through scheduled delivery every night right to your email.
   3. Self-guided mapping tools remove the technical support from importing files.
   4. Flexible reporting allows you to export the reports you need in the format you need them in.
   5. Audit reporting tools are available to review and download on demand or regularly to help you mitigate risk.
2. WAFD Treasury Express
   This provides a simplified online account management and treasury approach. Watch a demo to see what you have access to and how easy the platform is to work with. Through this user-friendly platform, you can:
   
   
   1. Create & manage sub-users and set sub-user limitations
   2. Check account balances and activity
   3. Place stop payments
   4. Transfer funds between accounts
   5. View cleared check images
   6. Access eStatements
   7. Pay bills with small business bill pay
   8. Make deposits
   9. Access payment origination; ask about ACH and wire features, as some limitations apply
3. Business Services
   WaFd Bank partners with Heartland to help you more simply manage and grow your business by offering tools like an all-in-one Wi-Fi-enabled device that's a terminal, receipt printer, barcode scanner, and back-office manager for the palm of your hand. Plus, we have a five-year price lock available to save you money!
4. Payroll Processing
   Also offered through industry leader Heartland, this service allows you to quickly and confidently submit payroll and payroll taxes on time and simplify payroll compliance and HR administration.
5. CollectEarly^™
   With FINSYNC, you can get your invoices paid in 4 HOURS, not 4 weeks. You can get the tools you need to seamlessly get your business finances in sync and save on time and administrative costs so you can focus on running your business. Start for free and add other tools as needed.

WaFd Bank is Here to Help

We're in the business of bringing simplicity to yours. Check out our wide variety of business services to find solutions that fit what you need, like payment processing systems, HR and payroll, customer engagement programs, and ways to open your cash flow so you can get paid faster and grow your business. If you're looking for straightforward solutions to help you better manage your business, contact your local small business banker, give us a call at 800-324-9375, or open a business account online.

All loans subject to credit approval.