One of the most important thing in your business is being able to accept payments and getting paid on time. There are a variety of ways to get paid, and it is important to offer payment types your customers use.

Cash

Cash is always nice, but it is only viable if you are face-to-face with the customer. You would need to either be a "brick and mortar" type business where customers come to you, or you will need to go to your customers. If you have employees handling your money, there is also the risk of it disappearing. And some businesses, like internet businesses and mail order businesses cannot accept cash without risking that it gets "lost in the mail" which can and does happen. Accepting cash only makes sense if you are see the customer face-to-face.

Checks & E-Checks

Accepting paper checks gives people the flexibility to pay from their checking account, however, you, as the merchant, take a risk that the check will bounce. This is why many places have stopped taking checks. Thanks to technology, you can now accept checks and electronically debit the money from their checking account at the time of purchase. This means you know whether the check is good at the time of sale, and the money is deposited into your account electronically in 2-5 days. It is also possible to take checks via the internet as well. Customers enter the information on their checks and authorize the debit, and you receive the money electronically. If your typical customers do not have credit cards but have checking accounts, this may be a viable way to accept payments from them.

To accept e-checks, you need a merchant account. We recommend FDIS Westheimer.

Debit Cards

There are actually two types of debit cards: once that require a PIN and ones that don't.

Debit cards that require a PIN are issued on a variety of networks including Pulse®, STAR®, NYCE®, Maestro®, Interlink® and many more. PIN-based debit cards are cheaper per transaction to accept because there is less risk involved since a PIN is required for the transaction and the card must be physically present. You will need to purchase PIN pads to attach to your credit card terminals to accept PIN-based cards. If a lot of your customers use debit cards, then it may be worth it to accept PIN-based debit cards, because of the lower fees. PIN-based cards cannot be used online or in any situation where the customer & card are not present.

Debit-cards that do not require a PIN are typically called Signature-based since they are used just like a credit card, where the customer normally signs their name. Signature-based credit cards have a Visa®, MasterCard® or Discover Network® logo on the front, and are processed just like a credit card, typically at the same rates as a credit card transaction. Signature-based debit cards are the only type of debit card that can be used online or when a customer is not present.

To accept debit cards, you need a merchant account. We recommend FDIS Westheimer.

Credit Cards

Probably known the best is credit cards. Most people know Visa®, MasterCard&reg, Discover Network® American Express® and Diners Club®, but there are also two other major cards accepted in the U.S. which are JCB® and UnionPay®.

JCB and UnionPay are based out of Asian and have millions of cardholders there. JCB does issue cards in the U.S., but most of their cardholders are from Asia. Because of their alliances with Discover, any merchant that accepts Discover Network® cards also accepts JCB and UnionPay automatically. If you company has customers who are from Asian, you should show those logos in addition to the standard ones.

MasterCard and Diners Club also have an alliance. Diners Club is accepted anywhere MasterCard is accepted in the U.S.

It is recommended that you accept all of the major credit cards. and let customers know you accept them. Customers can be finicky and if you don't accept their favorite card, they may just go elsewhere.

To accept credit cards, you need a merchant account. We recommend FDIS Westheimer.

PayPal

If you are an online business, you may want to consider PayPal as an alternative or as an add-on payment option. If you sell on eBay, then PayPal is a must. But we would not recommend PayPal as your sole payment provider. Accepting credit cards through your own merchant account looks more professional, plus you have more control over transactions than you do with PayPal.

If you are a small business with only a small amount of sales, PayPal may be cheaper than a merchant account, but if you do any volume, a merchant account typically will be much cheaper.

You can visit PayPal's website for more information on accepting PayPal.

Google Checkout

Google Checkout is also a viable alternative which allows you to accept credit cards online. Like PayPal, it reduces your credibility since you do not have your own merchant account, but for an online business, it may be a good way to start.

Visit the Google Checkout website for information about Google Checkout.

In Summary

There are many ways to accept payments, and it is important to accept the payment types your customers are likely to use. For most businesses, accepting credit & debit cards with their own merchant account makes the most sense. But PayPal and Google Checkout are viable options for those just getting starting on a part-time basis. "Real" businesses typically have a merchant account, however.