Since our economy seems to be getting tighter and tighter, business owners might want to take a look at ways to save money and not pay so much in different types of bank and payment fees. Alternative payments might be a way to pinch some pennies this year. Alternative payments are payment options such as Pay Pal, Google checkout and Bill Me Later, which can help business owners cut their credit card processing fees.
Pay Pal acts as a middleman and isn’t just for auctions, anyone can accept money or send money using Pay Pal. I have been using them for 11 years now and have never had any problems. Setting up an account is free, and many people already have accounts so it is simple, quick and easy. Money can be transferred from a bank account or taken from a credit or debit card. You can also send out Pay Pal invoices.
Google Checkout allows customers to customize an electronic wallet with the cards they want to use to pay their bills.
Bill Me Later is an instant card service and attracts customers by acting as an open-ended credit card for online transactions.
Alternative payments are not a trend, they have been out there for quite a while but are becoming even more popular as we become a more electronic nation. Many customers would rather make an electronic payment at their convenience 24/7 from home or work rather than write and mail a paper check.
If your business doesn’t accept any type of electronic payments, maybe 2008 is the year for your to upgrade and see if you can collect more and pay less in fees.
Michelle,
I appreciate your recent article on the usability of the MasterCard Small Business website, but must ask a question about the article on alternative payments. I am guessing the point of the article is to point out that alternative payment methods save merchants money as an alternative to accepting credit cards, and while I'm not sure what the fee structure is for BillMeLater or Google Checkout, I also have been using PayPal for the past 13 years and know that they charge a 2.9% fee for accepting credit cards and other direct payments to merchants with those accounts. Since our effective rate was quoted recently as 2.1% in the U.S., I'm not sure how that is saving that merchant any money, especially in light of the extensive Commerce Development programs we have with merchants to drive business to them.
Can you comment? Thanks.
Andrew Smart
Vice President, MasterCard
Posted by: Andrew Smart | January 8, 2008 11:17 AM | Permalink to Comment