AAB Online Payments

Electronic Payment Forms for Small Businesses

By Heather Molzon

Adopt-A-Business Intern

What is an electronic payment form?

A way for consumers to

pay for goods or services

electronically, instead of

using cash or a check, in

person or by mail.

What are some benefits to using online payment forms?

1. Expanded Reach

● Allows your business to not only interact

with in-store customers but also

operate/expand to an online presence

● E-commerce allows for increasing

demographic on state-wide, national, or

global level which can lead to increased

revenue

What are some benefits to using online payment forms?

2. Increased Security

● Avoids forged and void checks

● Limits internal fraud and theft by the

elimination of large amounts of cash

in-store

● Leaves an electronic “paper-trail” for

businesses to track payments

3. Faster Payments

● Avoids lag between invoicing and

usually allows you to immediately

receive payment from customers

● Makes it easier to manage and

predict cash flows and cycles on a

regular basis

What are some benefits to using online payment forms?

4. Convenience for Customers

● Many customers do not carry cash on them

● Making and giving change can be difficult and

inconvenient for customers

● Mailing checks or cash can be risky for long

distance customers

What are some benefits to using online payment forms?

What are some online payment forms small businesses can use?

Paypal

● 3 different levels for business accounts (free

account accepts all major credit cards, paypal

payments, and gives customers options to pay

over time)

● Easy money transfers, doesn’t necessarily

require a website

● Paypal is a trusted online payment forms for

many customers

● Paypal takes a small percentage of each

payment

Checkout by Amazon

● Optimal for an already created online

store with a checkout

● Allows customers to not have re-enter

their credit card information and use

Amazon information

● Amazon is an established corporation and

secure payment form that is widely

known, legitimizes your small business

● Encourages regular purchases

● There is a small processing fee, based on

how much customers pay

Apple Pay

● Free in-store or online options (separate

programs)

● For in-store you need to contact your

payment provider so they can set up a

terminal

● Many other online payment forms are

integrating Apple Pay into their systems

● Requires customers have an iphone, ipad

or apple product

● Extremely secure, requires touch ID or

password

Square

● Free to receive a free smartphone dongle

once you sign up!

● Allows you to process all types of credit

cards in person

● Perfect for businesses who attend markets

● Square also takes a minimal percentage of

the online payment for each swipe

How to decide which electronic payment form is optimal for your small business● Consider your business, how do customers normally pay? Why?

● Think about the customer--what will be most convenient for

them?

● Analyze pros and cons of using an online payment form cost

wise; will the small percentage taken by the specific form be

worth it?

Questions?