Modern business owners are always on the lookout for ways to facilitate their customers’ payments and to improve their reputation in the marketplace. By offering a wider selection of payment methods, companies can increase their reach and can also boost their revenue exponentially. If you are ready to accept credit card payments from customers, the only decision left to make is which type of online bill pay services for business to set up in order to process those payments.
Running a quick search on Google will immediately reveal a wide selection of merchant account providers. So, how do you know which provider to choose? Which one is the right one for you? A couple of big names in the payment processing industry might come to mind first — Square and PayPal. But, are either of those options right for your company? Or should you look into other options, as well?
What Does PayPal Offer?
PayPal is a name that is well-known in the payments industry and offers basic software free of charge. However, it does charge a monthly fee for the Pro Plan. PayPal is often a good choice for small business owners who only process a small number of transactions, and especially those who run online auctions. But, it charges for credit card processing, and ACH payments are not accepted as an option. This could prove to be prohibitive for larger scale companies that process a lot of transactions since costs can quickly mount up from additional processing fees that end up being added to the initially quoted processing rates due to volume.
What About Square?
Square offers a low-cost, or even free-of-charge, solution for taking credit card payments. It allows business owners to register for an account and then request a card reader that can instantly take card payments at any location through the downloadable app. While this payment option works especially well for occasional users, such as sellers at art fairs, or those running small businesses, again in much the same way as PayPal, Square charges fees for processing. These can rapidly run up into high figures when large transaction volumes are being handled on a regular basis, and the actual processing rates being charged many times end up being much higher than the quoted rates due to additional fees and adjustments.
Aggregated Merchant Accounts – What You Need to Know
Both Square and PayPal are aggregated merchant accounts, which means that a large number of businesses are sharing a single account. This means that there are a few disadvantages to bear in mind before choosing one of these two options. Aggregated merchant accounts mean that the transaction proceeds first go to the service provider before being deposited in the company’s bank account. Because there are no set industry standards to govern the way in which your money is handled, the aggregated merchant account provider can change the terms and conditions as it sees fit at anytime. Not only that but if the other companies that are processing their transactions through the same provider are fraudulent in anyway, or are even linked to any 3rd party partner or vendor that might be operating fraudulently, you risk getting your own processing account terminated, thus making it hard for your organization to process any payments in the future.
How Can BillingTree Help?
BillingTree presents a real alternative to aggregated merchant accounts, such as Square or PayPal. As a dedicated merchant account that offers multiple payment channels, BillingTree is able to charge much lower processing fees, ensuring better value for larger companies and those who process large transaction volumes. Because funds are also deposited immediately, in some cases same or next day into the bank account of the company, there are no delays in payments reaching your accounts. There is also no risk posed by other potentially fraudulent companies. For any company that takes more than 50 payments per month and is keen to offer the greatest flexibility in payment methods to its customers, BillingTree represents one of the best-valued online bill pay services for businesses of all sizes in the payments marketplace today.