How to Pick the Best Payment Channel for Your Business

 Sometimes as a business owner being subjected to credit card processing jargon can be overwhelming. What is a payment channel? Which payment channel to choose for my business? In this article we have compiled all the answers to your questions.

What is a Payment Channel?

A payment channel is a method where a customer can pay for their purchase anywhere or you as a merchant can accept payment anywhere. Payment channels are related to the mechanism of payment. The following are included as payment channels-

  • Over the phone payments such as MOTO
  • Physical POS systems
  • Mobile Payments
  • Online checkout solutions

Payment channels are related to retail channel even if they do not specifically refer them. Brick and mortar stores, catalogue business and e-commerce are retail channels.

Payment channels in relation to your business

You do not need every single payment channel for your business. You can select the payment channel that is the most applicable to your business currently and then grow your business from there. You can start with digital mobile payments or physical POS systems as applicable to your business. 

Here are some payment channels from physical terminals to e-commerce solutions and more, pick one that is the most effective for your business process. 

Physical POS Terminal

The physical POS is a traditional payment channel that supports cash registers. It is often found in small stores where customers pay in person. 

POS retail solutions are of two types. EMV smart terminal which is a simple countertop terminal solution and Mobile Checkout POS which is an all in one point of sale system. You can use an iPhone or iPad to process sales remotely. It can be integrated with existing POS systems as well.

Virtual Terminals

With a virtual terminal you can manage and process transactions via phone or face to face in real-time. A virtual terminal uses software to process transactions and hence physical and traditional credit card terminals are not required for it. This payment channel is best suited for business owners that do not have a store and take customer details online or via phone.

A virtual terminal is excellent for service companies, B2B companies and owners who process recurring billing. Payments can be processed directly using virtual terminals as long as there is a working internet connection. 

Mobile Payments

Mobile payments are for on the go businesses that do not want a lot of machines. Mobile payments are faster and better than physical POS systems. It is the best choice for service professionals who work in the field and collect payments in customer's homes. 

With mobile payments, merchants can accept payments anywhere. NO equipment purchase is required as the merchant only has to download an app on their mobiles, activate it and have a handheld terminal ready to use. 

Online Payments

 Ecommerce websites are excellent online payment channels for merchants that sell online. It is great as it lets customers sign up for memberships, pay bills, donate, and pay rent and more things online. 

All you need is an online shopping cart and payment processor to set up your very own online store.

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