5 Tips for Setting Up Your Business to Receive Payments

While you are busy creating your website, listing the services or products, and planning for their delivery, there is one part you are likely to forget: deciding how you will receive payments. Setting the payment system is as important as other preparations you make to ensure your business runs smoothly.

Key factors that guide selection of your payment system are the type of payments you plan to work with and how you intend to monitor your business. If you are fine accepting cash, then all you need is a cash register and a sales book. However, if you prefer cards and digital payment alternatives, then you should have a system to track inventory and sales closely.

Follow the steps below when setting your payment method:

Create a Legal Business Name

Business preparations should commence with creation of a legal name and registering the business. This helps you to acquire the documents and information, like your Employer Identification Number, which is necessary when opening a bank account.

Open a Bank Account for Your Business

Open a bank account for your business to ensure the money you get paid ends up in a safe place. You can find business checking account alternatives with both traditional and online banks. Ensure that you read the instructions carefully to identify the associated fees and also understand how to stay away from the avoidable charges. Additional settings will be determined by your preferences such as allowing clients to deposit funds directly to your bank account.

Create a Merchant Account

A business bank account form helps you to process debit and credit card transactions. If you have this type of account, the payment from clients goes through it before entering your bank account. When considering the merchant services, beware of the associated charges such as startup and transaction fees.

Get an Online Payment Processing System

You may choose to work with this option instead of a merchant account. For this to work successfully, online payment alternatives such as PayPal and Due may be the best, as they let you send invoices and receive customers’ payments. Due’s transaction fees tend to be lower than of a merchant account. Other features include live account monitoring and chargeback and fraud protection.

Buy a Point-of-Sales (POS) Device

Ensure that you have a device for customers to insert, tap or swipe cards or smartphones to make a payment. A POS system allows you to receive payments and track sales. You need a phone or tablet that is internet-enabled and a POS app to use this payment method. Once you connect your POS to a mobile device, get a credit card reader to help your customers make secure payments while in-store. The type of your device will determine the card reader you choose. For instance, you will need a credit card reader for Android or iOS for compatibility.

Endnote

Selecting a payment method that works best for your business is important, and it is even better that multiple options may be applied simultaneously. The process of setting a business to accept payment is as well very easy. You are free to select two or more alternatives that match your business payment system’s monitoring requirements.

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