Payment methods your small business can offer

This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.

All over the world, small business owners may be always on the lookout for ways to thrive and expand their businesses with the right tools. And that can start with payment processing.

Small business payment methods to grow your sales operation

Whether you're selling online, offline or a combination of the two, some great payment solutions for small businesses can help you accomplish a central part of doing business: getting paid.

The result? Selling your perfected salsa with ease no matter where you are – online, in your local storefront and even at the annual jalapeño festival.

In this guide, we’ll cover the payment solutions business owners can benefit from, including PayPal payment tools.

Payment methods for small businesses

When it comes to small business payment options, the key is to keep the payment process as quick and hassle-free as possible for both your customers and your team.

Not only that, simplifying the payment process can help enhance the overall experience for everyone involved from increased customer satisfaction to streamlined operations.

Not sure where to start?

Read on to discover how to accept payment methods from various sources that may align with your unique needs as a small business.

  1. Card payments

    With a growing preference for credit cards over cash and other payment methods, small business owners stand to benefit from offering card payment options for shoppers.

    As one of the great payment methods for small businesses, here are some of the advantages of card payments:

    • Increased sales potential: By accepting card payments, you open your business to a broad customer base, including those who prefer the convenience and security of card transactions.
    • Streamlined checkout process: Card payments offer a fast and efficient checkout experience for customers, reducing waiting times and improving overall customer satisfaction.
    • Security and reduced risk: Card payments come with built-in security features that help protect both the customer and your business from potential fraud.
    • Digital recordkeeping: Card transactions generate digital records, making it smooth to track and manage payments.

    Here are some cons you may need to consider:

    • High fees: Card payment processing fees can be significant, particularly for small businesses with tight profit margins.
    • Chargebacks and disputes: Customers can dispute card transactions and initiate chargebacks, which can result in the loss of funds for businesses.
    • Equipment and maintenance costs: Accepting card payments requires investing in payment terminals or online payment gateways, along with associated costs for equipment purchase, installation and maintenance.
  2. Cash payments

    Unlike card payments, cash payments allow for immediate receipt of funds – which can help manage cash flow and meet urgent financial needs. Plus, there are no fees associated with accepting cash from customers.

    However, running a cash-only business does come with its challenges.

    One of the main concerns is the risk of theft, both from external sources and internal employees. Cash transactions can also be more difficult to track compared to digital transactions.

  3. Online payments

    One of the great ways to accept payments for small businesses is via online payment processing. Online payment gateways provide a smooth and secure way various operations – from retail to food service – to accept payments on their websites or ecommerce platforms.

    By integrating an online payment gateway, you can offer customers the convenience of making purchases directly on your website, eliminating the need for manual processing or offline payment methods.

    These gateways also support various online payment methods such as credit cards, debit cards and digital wallets.

    Some of the downsides of online payments can be that the choice of accepted payment options might be limited depending on your chosen payment processor, and that varying fees and pricing structures can make comparing providers difficult.

  4. Cheque payments

    Cheque payments involve customers writing a physical cheque for the desired amount and businesses depositing the cheque into their bank account.

    Accepting cheques can provide a paper trail for recordkeeping and attract customers who prefer this method. However, it can be time-consuming to process and deposit cheques, and there is a risk of accepting bad cheques or encountering insufficient funds.

    To start accepting cheque payments, businesses should establish a relationship with a bank or financial institution that offers cheque processing services. This involves setting up a business bank account and following the bank's guidelines for cheque acceptance and verification procedures.

  5. Digital wallets

    Digital wallets are electronic payment methods that allow users to securely store their payment information on their mobile devices or online platforms. The technology will even accept QR code scans by allowing customers to make purchases via QR code or using Near Field Communication (NFC) technology.

    If you accept digital wallet payments, it offers convenience, streamlined transactions and enhanced security for customers. However, businesses will likely need a compatible POS system or payment gateway to process these payments.

PayPal payment solutions for small businesses

PayPal can help you do business almost anywhere.

Take orders for your delicious pasta sauce online with our credit card processing system, sell recipe kits on an online marketplace, accept payments for sales at the local maker’s market with a mobile point of sale or QR code, and email invoices to clients for catering.

As your end-to-end ecommerce solution for platforms and marketplaces, PayPal delivers a payment platform with the global scale and flexibility your business needs to help you stay competitive.

As a great payment solution for small businesses, we’re here to help you reach customers and make it easy for you to get paid, however you do business.

Sell online easily

PayPal online checkout is a one-and-done payment solution that lets your business accept a range of payment types.

Whether you choose something simple or need a completely custom integration, PayPal can intelligently present relevant payment types to your customers, making it easy for them to pay using PayPal, credit or debit card and other payment methods.

If you're looking for something simple that you can implement yourself, try creating a payment button.

Setup takes just minutes and includes basic customisations like changing the button’s alignment, shape and colours. By copying prebuilt code and pasting it next to the products or services you want to sell on your website, you can start accepting payments right away – no developer help required.

When you want to fully integrate a more robust checkout process into your website, PayPal Checkout has an integration with the features you’re looking for. You can choose almost everything from the colours to the layout and language, designing a checkout process that is customised for your business.

As a payment gateway for small businesses, you can also process card payments over the phone, by fax or by mail with Virtual Terminal. Virtual Terminal allows you to enter a customer's card information directly into your PayPal account, so you can be flexible and accept payments in the way that’s most convenient for your customer.

Sell on-the-go or in-store

Meeting customers where they are is important to keeping your business relevant for the times – that means adapting to changing consumer behaviour and buying preferences.

PayPal Point of Sale lets you accept credit and debit chip and contactless cards, as well as other payment options like mobile wallets. In addition to accepting payments, PayPal Point of Sale can help you streamline your operations with features to manage inventory, generate sales and performance reports, and more.

With PayPal QR codes, there's no need for you or your customers to handle cash or cards. This option allows customers to pay by simply opening the PayPal app and scanning your unique code, and then you receive payment quickly.

Your PayPal QR code is free to create, reusable and never expires. (Limits apply. See all merchant fees here.)

Manage cash flow and business expenses

With PayPal Invoicing, you can generate professional-looking invoices in minutes. The online invoices make it as easy for your customers to pay as it is for you to create and track.

Just as importantly, you can effortlessly keep tabs on your invoices, monitor their status, and track payments in real time, allowing you to stay organised and support that payments are received promptly.

With the right tools, you can simplify your processes, save time and focus on what truly matters: growing your business.

Choosing the right payment solution for your small business

Every business is different, there’s no one-size-fits-all. Picking the right payment system comes down to matching your business model, customer habits and budget.

  • Business type: A café or market stall may need a mobile card reader or QR code functionality. An online store, meanwhile, might need a hosted checkout or embedded ‘Buy Now’ buttons.
  • Customer preferences: Do your customers lean on digital wallets like Apple Pay®, or do they still prefer chip-and-PIN or even cash? Survey or observe to find out.
  • Transaction volume & value: High volume, low-value sales benefit from flat-rate fees; low volume, high-value items can absorb higher per-transaction fees.
  • Budget & overheads: Account for monthly fees, per-transaction percentages, PCI-compliance costs and any hidden charges. A lean startup can benefit from flat-rate models, while growing businesses may save with interchange-plus pricing.
  • Integration & support: Look for solutions that plug into your ecommerce platform, accounting software or POS, with robust developer docs and UK-based support when you need it.

Accept multiple payment options using PayPal

PayPal’s ecosystem lets you serve almost every buyer, almost everywhere, from within one account by natively accepting multiple payment options. It’s a versatile solution designed to meet the needs of small business owners and enhance customer satisfaction through choice and convenience.

  • Digital wallets: Offer Apple Pay® and Google Pay®. They are all vaulted into PayPal’s secure checkout.
  • Cards & guest checkout: Customers can pay by Visa, Mastercard, Amex or as guests. No PayPal account required.
  • QR code payments: Generate a reusable PayPal QR code in the Business app and let customers scan & pay right from their phones.
  • Bank transfers & direct debit: In select markets, Direct Debit powers low-cost recurring billing and subscription plans.

Integrating PayPal’s various payment methods into your ecommerce platform, website or physical POS system makes your business operations easy. You can go live quickly and depend on PayPal’s robust encryption and fraud-monitoring to keep every transaction secure.

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