Online payment options for small business

The pending Strike / Lockout (depending on which side you ask) of Canada Post could very well be a signal to small business that it is time to reconsider just how they actually handle invoicing and payment collection for their companies, and the answer is in Technology.

In an article posted on CBC's Website Small business owner Frank Baizik was quoted as saying

“"We send invoices and we receive cheques by mail,"

The fact is, this practice is no longer the only option for businesses like Mr. Baizik’s.

Modern times have brought users to a world where online transactions are easier than ever to set up and deploy through services like Square Payments, Braintree, Interac, Stripe  and Paypal.  Many of these services have their own API protocols so that it they can be integrated into an existing Website with ease and some of the services have very reasonable, if any, fees involved.

the benefits of including payment services, like the ones listed above, include the fact that a small business can actually cut out the postal service all together when it comes to invoicing and collecting payments from customers. In this article, I thought I would take a bit of time to go over some of the options available to merchants.

Interac: interact.ca

In Canada, Interac is a major player in the payment industry. They are associated with all the Major Banks and run the infrastructure on the back end of the Debit Card Market. Through the use of features like Interac’s e-Transfer service, transfers are handled through linked email addresses and once notification of a e-Transfer is acted upon the funds are in the account of the receiver almost instantly. Fees per transaction may apply through the bank processing the transfers.

Stripe stripe.com/ca

Stripe, offers the ability to implement into one’s Website payment options, however this does come with a confirmed fee of 2.9% plus $0.30 per transaction. Transfers are not as instant as with Interac’s service as Stripe’s website states that they do transfers on a 7-day rolling basis, and disputes, such as chargebacks, incur a fee of $15 fee unless the dispute is resolved in your favour in which case the fee is fully refunded.

Square squareup.com/ca

Square has been around since May of 2010, and was created by the founder of Twitter, Jack Dorsey. Much like Stripe, Square offers the ability to set up payments via ones Website, but offers much more. Square’s services include Payments through both online and point of sale, including the use of the Square reader which turns your iOS or Android mobile device into a payment terminal. Square also allows businesses to invoice clients online and even offers a online mobile marketplace for businesses. Invoices are sent via email and are free to send.

If your client pays via the invoice online there is a 2.75% fee incurred and funds are in your business account in one to two business days. Invoices can be generated directly from the Square app on one’s phone and emailed directly to customers.

Paypal paypal.com
Long associated as the payment method for Ebay purchases, Paypal is one of the older companies in online payment options. For businesses they have 3 tiers of payment processing options ranging from $0 /month to $35/month and a 2.9% + $0.30/transaction fee. Much like Square, they do offer the ability to produce invoices from one’s account that can be emailed to clients.

Braintree braintreepayments.com

Braintree Payments, is a subsidiary of Paypal, and much like Square and Stripe can be integrated into an existing website or app to allow for payments directly from customers. Pricing for Braintree states that the Merchant gets fee-free processing up to their first $50 thousand dollars in transactions and then there is a 2.9% + $0.30 fee / transaction

Braintree states that they work with all payment formats, including Credit/Debit cards, Apple Pay, Android Pay and Venmo payments.

Overall there are many options for handling the payments for a small business that do not rely on Canada Posts services. I hope this gives you a few options to consider that in the long term may well speed up and streamline the process of accepting payments.