• Introduction
• Online payment providers
• Electronic funds transfer (EFT)
• Mobile payments
• Online invoicing
• The benefits of accepting online payments
• The drawback of accepting online payments
• Frequently asked questions

Understanding how to accept payments online is crucial for any business in today's digital age since many customers expect online payment options when they're looking to complete their transactions.

While some people may have avoided online payments due to increased costs and technological updates, implementing digital payments is surprisingly easy. Here's how to accept payment online in Canada.

Online payment providers

Any business that wants to accept payments online will likely find online payment providers to be the easiest options. Alternatively, you could use e-commerce platforms, which have payment processing built right into their platforms.

What makes online payment providers appealing is that they can easily integrate with most major website builders, such as WordPress. All you need is an account with the online payment provider, and then you can connect your information with your website to enable payments.

If you're setting up online payments for the first time, check your website builder to see if there's a plug-in already available that allows you to add them. For those who aren't tech-savvy, online payment providers usually have customer service staff who can walk you through the process. 

Electronic funds transfer (EFT)

Businesses can accept electronic funds transfers (EFTs) in two ways: Interac e-Transfer and direct deposit.

For businesses that lack online infrastructure or the ability to accept debit and credit cards at the point of sale, Interac e-Transfers can be highly appealing since it requires minimal set up.

To accept an e-Transfer, you need an email address or a mobile number linked to your bank account. When someone sends you money, you will receive a notification via email or text. Typically, e-Transfers require a password, but you can set up your account for auto deposits so the money arrives almost immediately.

With an EFT, money is transferred directly to your bank account, but the sender requires the following information:

• Your bank's institution number
• Your bank's branch number
• Your bank account number

This information can be found online by generating a "direct deposit" slip from your desired bank account. EFT transfers are typical for companies with a dedicated payroll department, as the accounts receivable team can track payments.

It's worth noting that some companies use a dedicated online payment portal, such as Bill.com and Ariba.com to manage their vendors. That means you would need to create an account and add your banking information for you to get paid. 

Mobile payments

Many consumers have started to shift away from cash and have gone digital only for payments via Apply Pay and Google Pay. While this payment type is traditionally done in stores by tapping your mobile device at a point of sale system, the payment option is now becoming popular online.

• If you're using an e-commerce website, then mobile payments are likely already supported. You just need to add it as one of your accepted payment options. However, if you're building your website from scratch, you'll need to go through some set up, such as linking your banking info and creating a developer account.

Learn how you can save more time and easily accept payments with QuickBooks Payments solutions.

Online invoicing

Many business owners in Canada now use online invoicing as a way to accept digital payments. Invoicing programs like QuickBooks allow you to manage payments through your QuickBooks Payments account.

The process is straightforward. You can create and send invoices directly through QuickBooks Online. This prompts your clients to pay immediately via credit card, debit card, Apple Pay, or Google Pay, reducing payment times.

Once set up, payment can easily be tracked with QuickBooks, so you can see your cash flow, average time of payment, and any outstanding balances. Since the software auto-updates your books when payments are received, there’s less manual data entry. That means more time for you to focus on your business.

The benefits of accepting online payments

• Potential for increased income: By accepting online payments, you increase the potential for sales as customers can make payments at their own convenience. Think of it from a customer's perspective. If they can make a payment immediately online or wait until a store opens to provide payment information over the phone, they'll likely choose the path of least resistance.
• Get paid faster: Whether it be Interac e-Transfers or online invoicing software, payment times typically increase when accepting online payments. Some digital payments are done immediately. Even if a vendor requires a few weeks to process your payments, you don't need to worry about depositing a physical cheque as the digital payment will go right to your bank account.
• Less admin work: Since online payments are digital, you don't need to worry about counting or depositing cash. In addition, online payments are trackable, so you can see outstanding balances and the average time it takes to get paid.

The drawback of accepting online payments

• Fees for payments: Besides Interac e-Transfers, each online payment option charges a fee for using its services. Generally, fees are set at a fixed percentage. However, some providers also offer a subscription model where the fees can be lower if you meet a certain volume.
• Additional work: Since accepting online payments could increase sales, the amount of work you put into your business may increase. For example, you may need to ship more products or provide additional services. The additional volume may require you to work more or hire extra staff.
• Will need web support: Integrating digital payments in Canada is straightforward, but if you're not the most tech-savvy, you may need to hire someone to integrate things for you. Additionally, if there's ever a problem with accepting online payments, you'll need your web support team to determine the issue.

Disclaimer

Money movement services are provided by Intuit Canada Payments Inc.

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