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C ac Sa e

S a B i e La ge B i e SaaS P a f

Top Pa men Me hod and Ho o

Accep Each Pa men Mode
by Stax

As business owners, it’s important for you to accept multiple payment methods from
your customers, giving them the option to pay for goods or services in their preferred
payment method.

This does mean, however, that you will have to keep up with both traditional and
modern payment systems. To help you select the payment methods best suited for
your business, this post lists different modes of payment and the pros and cons
associated with each.

Pe ai g b i e acce a e

In addition to legally creating your business and opening a business bank account, you
will need to decide how you want to accept payments. If you are just starting out and
only want to accept cash, you can easily track sales on paper or in a spreadsheet. In
today’s day in age businesses usually need a li le bit more technology for tracking
inventory and sales. And customers o en prefer to pay with cards or digital payment
methods, so if you only accept cash, you may be missing out on lucrative sales.

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Wha h d c C ide
ac Sa e he ch i ga
a e i
S a B i e La ge B i e SaaS P a f
Just like your customers, payment methods come in all shapes and sizes. Different
payment types have various benefits, drawbacks, and in most cases, fees. Needless to
say, deciding on which modes of payments to accept will depend on your specific
business and customers.

Here’s a rundown of the common payment modes that you should consider.

Lea M e

P a dc f diffe e a e e

C edi Ca d

Credit cards offer a quick and convenient way to make financial transactions both large
and small. With a credit card, clients use a set credit limit from the company issuing the
card to make offline and online purchases. Some companies like American Express and
Mastercard offer contactless credit cards that use radio-frequency identification to
authenticate card information, saving customers the trouble of swiping their cards
against a card reader and making the process more secure.

If customers pay back their credit card balances regularly, they can build up a good
credit line. However, if they have trouble meeting their payment due dates, they can be
charged interest and their credit card rating can go down. To provide your clients with
the best options for paying with credit cards, contact Stax to learn about the most
secure ways to incorporate credit card payments into your business model.

Debi Ca d

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Debit cards withdraw money directly

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from
ac Sa e
an a ached bank account. A debit card
payment usually doesn’t come with annual fees and does not charge payees interest,
which can encourage use. However, they also come with limited fraud protection and
don’t
S a B build
i e a client’s
La ge B credit
i e score,
SaaS Pcausing
af some customers to prefer using credit cards.

To accept debit card payments, you’ll need to comply with all the regulatory
requirements in your industry. You’ll also need to choose a payment process to
facilitate payment card transactions. In-store, the equipment you need to process debit
cards are the same as the ones for credit cards. Online retailers, be sure to set up your
payments web page to accept financial transactions from debit cards and optimize this
page for mobile devices so clients can enter their debit card information through their
smartphones.

A a ed C ea i g H e ACH

Automated Clearing House (ACH) transfers are electronic, bank-to-bank money

transfers that provide a fast and convenient way for businesses to pay vendors
(including payroll via direct deposit) and receive payments from their clients. These
ACH payments are also sometimes called direct debit payments or bank payments, and
they allow customers to pay directly from their bank account to another bank account.
Bank transfers and wire transfers are usually used for larger and more frequent
payments where cash is not a good fit.

This mode of payment is helpful for businesses like mortgage and utility companies
since their customers can set up automatic recurring transfers to pay their bills.
However, some banks do impose limits on how much money can be sent through an
ACH transfer and multiple ACH transfers can tri er an excess withdrawal penalty for
savings accounts. Since there can be delays in ACH transfers, some clients may be hit
with late fees if their transfer completes a er the due date.

To accept ACH transfers, you’ll need to sign up with payments provider that supports
ACH. This gives your business access to the ACH network and allows direct withdrawals
from customer bank accounts. You’ll also need to request authorization from your
customers and collect their payment details, making sure to verify this information.

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Ca h C ac Sa e

Exchanging cash remains a simple (albeit cumbersome) payment option used by both
S a B i e La ge B i e SaaS P a f
local markets and major companies. It’s particularly popular among older customers and
clients who are less tech-savvy and prefer to use physical currency.

That said, paying in cash is difficult if a client needs to make multiple expensive
purchases. Cash users also need to carry the currency of the country where the
transaction is being made. Finally, unless you keep careful records, cash transactions
carry a higher risk of accounting errors.

Pa e Chec

Paying via paper check is a convenient way to make large financial transactions. The
payer can also cancel the payment until the payee presents the check to the bank,
adding extra security. However, it takes time for a check to clear, making this an
inconvenient mode of payment if you make several day-to-day transactions.

Businesses that accept checks as payment should create a check acceptance policy for
their clients. This policy should detail the types of ID clients who pay by check should
display, the dollar limits for the checks, and the information on the check—such as the
payer name, bank ID, and signature— that needs to be verified.

eChec
eCheck payments are conducted online. In the U.S., businesses use the ACH merchant
network to withdraw money from the payer’s checking account and deposit the funds
directly into the payee’s checking account. Customers validate their eCheck payments
by authorizing the transaction on a website or signing a contract.

This mode of payment can be processed faster than a paper check and may offer lower
processing fees than certain credit cards. However, there is the potential that online
hackers can gain access to customer banking information and computer glitches can
lead to faulty withdrawals.

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To accept eChecks, businesses useCan acACH-supported

Sa e
merchant account to withdraw
customer funds online. They also need their customer’s banking information, including
routing and checking account numbers.
S a B i e La ge B i e SaaS P a f

Digi a Pa e

Beyond credit and debit cards, digital payments include paying by PayPal, Venmo, and
Zelle as well as through digital mobile wallets like cell phones and smartwatches.
According to McKinsey, of Americans already use digital payments.

All of these payments enable money to be transferred from one account to another
electronically. Customers appreciate these payment options for their fast transaction
speed and the reduced dependency on cash.

Businesses that choose to accept digital payment need to invest in a Point of Sale (POS)
system that can handle multiple types of digital payment methods. You’ll also need to
consider your return on investment (ROI) when factoring in the setup fees, per
purchase fees, and flat monthly usage fees that come with processing digital payments.

Digi a Wa e

Digital wallets are available in various payment modes such as credit and debit. A wallet
typically needs to verify customers’ identities (such as address, email address and
phone number), to pay. These o en use biometric verification like a fingerprint or face
recognition so ware (ex: Apple Pay and Google Pay).

M e O de

Usually issued by a government or banking institution, money orders are certificates

that allow your business to receive cash on demand. Since money orders do not include
personal information like bank routing numbers, they are considered safer than paper
checks. Money orders can also be cashed in other countries, making them useful in
international business dealings. However, you may need to pay a fee to cash a money
order and the lack of personal information makes them hard to track.

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If your business accepts money orders,

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you should endorse each certificate with your
ac Sa e
business name, your name, and your job title. Be prepared to present personal
identification as well as proof of your position in your company. Having a business
checking
S a B i e account
La gealso
B i makes
e it easier
SaaS P a f to deposit the funds.

E ec ic F d Ta fe EFT a d O he O i

Electronic Funds Transfer is a term you may also hear, but this is an umbrella term for all
types of digital payments, including credit card payments, debit card payments, mobile
payments, PIN transactions, and online purchases.

Wire transfers are usually used for larger and more frequent payments where cash does
not fit. In most cases, payments by manufacturers to suppliers are made via wire
transfers, especially for domestic transactions. The ACH is commonly employed for
direct deposits in payrolls by a business. Although both electronic transfers exist, the
differences are between ACH and wire transfers. ACHs only operate in the United
States. Sometimes they require a couple of days to fully process them.

Ch e he igh a e a eg f a e
a d cha e
Providing a variety of payment options to customers is easy if the payment API
integrates with your existing system. Using the API, payments can be seamlessly
integrated into your other applications. With Stax, our innovative technology easily and
quickly connects you and your customers to your chosen online payment methods or
offline payment method.

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C ac Sa e

S a B i e La ge B i e SaaS P a f

Pa e Me h d Fi a W d
Providing your customers with multiple modes of payment improves your customer
service experience and facilitates stronger relationships with your clients. Given the
number of payment options today, it’s important to invest in a secure payment platform
like Stax that provides you and your clients with the best-in-class service.

Stax doesn’t have any hidden fees, contracts, or markups. Its integrated payment
system is also designed to work with multiple so ware applications and provide your
business with a number one rated payment processor that saves you time and money.
Make sure you’re accepting the right payment methods. Our specialists are standing by.

Get in touch to learn more about the different modes of payment that Stax supports
and how to leverage them in your business.

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C ac Sa e

S a B i e La ge B i e SaaS P a f

FAQ ab Pa e Me h d

Q Wha a e he a e eh d ha b i e e
h dc ide acce i g

The top payment methods are credit cards, debit cards, Automated Clearing House
(ACH) transfers, cash, paper checks, eChecks, digital payments, and money orders.

Q H ca a b i e acce c edi ca d a e

To accept credit card payments, businesses should contact a payment processing

service like Stax to learn about secure ways to incorporate credit card payments into
their business model.

Q Wha a e he e ie e f acce i g debi ca d

a e

To accept debit card payments, businesses need to comply with regulatory

requirements in their industry and choose a payment processor to facilitate payment
card transactions. For online retailers, it’s important to set up a payments web page that
accepts debit cards and is optimized for mobile devices.

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Q H ca b i e e C acce
ac Sa e ACH a fe

To accept ACH transfers, businesses need to sign up with a payments provider that
S a B i e
supports ACH, La ge B i e
giving SaaS P a f
them access to the ACH network and allowing direct withdrawals
from customer bank accounts. Businesses also need to request authorization from
customers and collect their payment details, verifying this information.

Q Wha e h db i e e a e acce eChec

a e

To accept eCheck payments, businesses need an ACH-supported merchant account to

withdraw customer funds online. They also need to collect customers’ banking
information, including routing and checking account numbers.

Q H ca b i e e acce digi a a e a d digi a

a e a ac i

Businesses need to invest in a Point of Sale (POS) system that can handle multiple types
of digital payment methods. They should also consider the return on investment (ROI)
when factoring in setup fees, per purchase fees, and flat monthly usage fees that come
with processing digital payments.

Q Wha i he ce f acce i g e de a a
f f a e

Businesses should endorse money orders with their business name, personal name, and
job title. They should also present personal identification and proof of their position in
the company. Having a business checking account makes it easier to deposit the funds
from money orders.

Q H ca S a he b i e e acce ai a e
eh d

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Stax offers a secure, integrated payment

C ac Sasystem
e that works with multiple so ware
applications, providing businesses with a top-rated payment processor. Their specialists
can help businesses determine the right payment methods to accept and how to
leverage
S a B i ethem. La ge B i e SaaS P a f

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SaaS P a f

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