Anyone considering launching an ecommerce business must answer numerous questions about the amount they must invest, the products they will be selling, the customers to be served, staffing and equipment requirements and much more. 

It is just as crucial that entrepreneurs carefully look at the most effective methods by which they can accept customer payments as efficiently and securely as possible. Since each has its own advantages and suits particular types of businesses, the best way to make a decision is to learn about all of them.

Credit and debit cards

Checking out with a debit or credit card from Visa, Mastercard, Discover or American Express is by far the most popular way for customers to pay for your products and services. Since each of these card companies has its own fees and processes, you will need to work with every one separately. 

When you partner with a payment processing company offering a top-of-the-line online payment processing system, you will not need to have a separate merchant account. Best of all, that provider is responsible for providing an omni-channel payment platform that complies with the Payment Card Industry Data Security Standard (PCI DSS). 

This set of measures created by the major credit card companies is designed to protect cardholders from fraud and data breach.

In general, the processing of credit and debit card payments takes two to four business days. For example, if your customer makes a purchase on Friday, you should have the funds in your business account by Tuesday or Wednesday.

Digital wallet payments

Customers are becoming increasingly familiar with the giants in the digital wallet industry such as PayPal, Apple Pay, Google Pay and Samsung Pay. In order to use these services, a shopper must first set up their credentials with the provider, including links to the account from which funds will be drawn. 

When the time comes to make an online purchase, the customer simply presses the appropriate icon on your shopping cart, provides their login credentials and seamlessly submits the payment. They don’t even need to input their contact details since everything is already stored by the digital wallet provider.

In general, you should be able to access your funds within one to three business days. In this example, you will probably be paid on Monday or Tuesday for a purchase made on Friday.

ACH payments

There are situations when a customer does not have a credit or debit card or digital wallet or simply prefers not to use either of these methods. In these cases, Automated Clearing House (ACH) payments can offer the ideal solution. 

With this method, U.S.-based customers can transfer funds from their bank account into yours with no need to use a credit card or make a wire transfer. The ACH network can also process electronic checks (eChecks), which function in the same way as paper checks.

Just as is the case with digital wallet payments, funds from ACH transactions usually appear in your account within one to three business days. In the instance of ACH credits from vendors or direct deposits, the process only takes one business day. 

For an extra charge, you can also get same-day ACH for the speediest turnaround.

Direct debit

Increasingly popular in recent years, this model allows a customer to set up an arrangement with the merchant whereby a set amount of money is withdrawn from a specified account on a predetermined date each week, month or on another time frame. 

Businesses that offer subscription or membership services find this structure to be ideal since it offers greater predictability and transparency. Additionally, customers feel more comfortable paying for big-ticket items when the charges can be distributed over a longer time period as opposed to being required in full at the time of purchase.

Of the different payment methods we have discussed, direct debits take the longest to clear. You might have to wait for up to five working days before the funds make their way into your business account. 

However, the preset nature of the arrangement means that you are still able to budget intelligently with these delays in mind.

The bottom line

Given all of these trusted payment method options, you may be concerned that you will only be able to choose one. The reality is quite the opposite. In fact, as long as you partner with a payment processing company that allows you to do so, you can take multiple forms of payment with ease. 

You can also configure your ecommerce site to integrate with your point of sale system’s customer loyalty features in order to further personalize the buyer’s purchasing experience. With just a few clicks, you can even send invoices via email, text or SMS that contain a link that takes people directly to your 3D secure payments checkout page. 

These seamless features increase the chances that you will receive your payments in full and on time with a minimum of effort on your part.

As we have demonstrated above, each form of payment has its own qualities and time frames. For the most rapid turnaround, it is definitely in your best interest to incentivize customers to pay using ACH since you can pay more to get your money on the same day. 

But if you’re willing to wait and operate in a more delayed but equally predictable time frame, direct debit just might be the right choice for you.

As you map out your complete payments ecosystem, always keep in mind that each payment method has its own associated costs and fees. The documents provided by your payment services provider will include terms and conditions that specify exactly how much you will be charged for every type. 

Over time, you can track how frequently each payment type is used in order to predict your monthly or yearly expenses. If a particular one is too costly or is not used by many of your customers, you might want to remove it from your website to save yourself some money.

Integrating several popular payment methods into your website benefits your business while simultaneously pleasing your customers. Take the time to choose the ones that best meet your business needs, and everyone will reap the rewards.