Filter by integration
Subscribe for weekly news & updates.
Product’s SEO for Online Sellers
New-ebook-1 Download
What Is Required to Build an eCommerce Website?
old-book Download

What Every Entrepreneur Should Know About Payment Systems

3 minutes read
what-every-entrepreneur

Unlock powerful payment systems for your small business! Discover how to enhance cash flow, security, and efficiency with smart processing solutions.

Table of contents

According to the ABS (Australian Bureau of Statistics) 97.2% of companies in Australia have less than 20 employees in their ranks, which means that small business is the backbone of the Australian economy.

However, 20% of all new businesses fail within the first 12 months of their operation and 60% within three years, so becoming profitable and sustainable is no easy task. Despite this, many entrepreneurs continue to try, with more than 406,000 new businesses being launched in Australia in 2023.

With the current business landscape being as tough as it is, if any of them are to avoid falling by the wayside, they are going to need to maintain a good level of cash flow.

Doing this requires a high revenue in sales, that will have to be processed, which is why having a good payment system is so important.

But what exactly is a good payment system, and what benefits will it bring to your venture?

In this post, we’ll explore these questions in more detail.

What is a Good Payment System?

Every business – startup or established – needs a good payment system in place to process debit and credit card payments for sales made by their customers.

The company that processes payments for your business will provide you with a merchant account that accepts various types of digital payment methods such as credit cards, debit cards, digital wallets and even, increasingly, cryptocurrency.

Generally, businesses are charged a fee by the payment system company to rent out their processing terminals. They are also charged per sale for every sale they process through the gateway technology.

This amount can either be a percentage of the overall sales total or a flat fee, and it will vary depending on the provider. However, some companies, including Smartpay, offer packages where you don’t have to pay these costs if you meet certain conditions.

 

What Benefits Can Using a Robust Payment System Bring for Your Business?

According to the RBA (Reserve Bank of Australia), Aussies make 650 electronic transactions every year on average, the overwhelming majority of them to businesses.

This figure is only set to rise in the coming years which is why a good payment system can be an invaluable asset for your venture.

Thankfully, there are some tangible benefits that having a good online payment system can bring for both buyers and sellers. Below are some of the main ones:

1. Faster Processing

The modern customer wants a quick and easy process when it comes to paying for their purchases, which a good payment system provides them with.

There was a time when processing transactions used to take several days. But now, they are completed in a matter of seconds, often by simply tapping a credit or debit card or placing a phone next to the card reader.

For the customer, this means shorter queuing times and an improved shopping experience. While for the merchant it results in them receiving their money quicker, which is a win-win situation for both.

2. Enhanced Security

Back in the day, many companies accepted cheques as a form of payment only to discover later that they had bounced, causing disruptions to their cash flow.

Even today, many businesses have been hit with chargebacks when customers claim to have not authorised an online purchase (often after the goods have been sent to them).

A good payment system can eradicate these threats by processing payments in real-time at the point of sale.

Additionally, these payments are processed in a very secure way, using encryption technologies that keep your customer’s details safe, and multi-factor authentication (MFA) methods to ensure fraudulent activity has not taken place.

3. Reduced Chance of Human Error occurring

Human errors can be very costly for businesses. However, with a good payment system, they are less likely to occur because the process is automated.

This means that the likelihood of situations such as invoices not being sent out, your business paying twice, or an incorrect amount being charged won’t happen, which in turn will save you money, streamline your operation and improve your overall customer experience.

4. Much Cheaper Invoicing

Research by the ATO (Australian Tax Office) has revealed that Australian businesses spend, on average, $27 to send an invoice to a customer via PDF (taking into account the cost of the employee’s time). Additionally, a paper invoice can be as much as $30 when the price of postage is considered.

By contrast, as it only costs $10 on average to send an electronic invoice to them, having a good payment system in place can potentially save businesses thousands of dollars a year.

That said, the amount they save will depend on how many invoices a business sends out per year and how quickly it creates and sends them. But nonetheless, the cost-saving opportunities are there.

5. Excellent Reporting and Analytics

Most payment processing systems will provide you with excellent reporting and analytical data that can give you valuable insights into your business and, in particular, the sales you make.

For instance, it can tell you exactly how many sales you made and of what products. It can also tell you what time of the day or week they took place.

Armed with this information, you will be able to roster staff accordingly and also better understand what products sell more than others.

This can help you improve your overall net income.

Was this news helpful?

grinningYes, great stuff! neutralI’m not sure frowningNo, doesn’t relate
Share this article:
Table of contents
prev_l next_l

Also Popular on Sellbery

Understanding Digital Ownership in WoW: A Deep Dive into Game Assets

Explore the evolving concept of digital ownership in World of Warcraft, its benefits, challenges, and the future of in-game assets. Discover how blockchain technology is set to revolutionize player engagement and game economies.

From Manual to Automated: Enhancing HR Practices with Technology

Explore how technology is transforming HR practices from traditional manual methods to automated processes, improving efficiency and employee satisfaction.

How To Craft Abandoned Cart Email Layouts That Win Shoppers Back (+ Real Examples)

Craft irresistible abandoned cart email layouts with these elements: catchy subject lines, clear CTAs, incentives, and social proof to win back shoppers.

Navigating eCommerce Pricing Strategies in 2024

Navigate eCommerce pricing in 2024 with strategies like dynamic pricing, psychological tactics, subscription models, freemium options, and cost-plus pricing.

How to Calculate and Forecast Annual Recurring Revenue for Your Business

Master the calculation and forecasting of Annual Recurring Revenue (ARR) to accurately monitor your SaaS or subscription business's growth and financial health.

How to Choose the Right Custom Home Builder

Learn how to choose the right custom home builder. Discover key factors, essential questions, and tips for a smooth process to bring your dream home to life.

Critical Tips for eCommerce Sellers to Avoid Bankruptcy

Protect your eCommerce business from bankruptcy with these expert tips. Learn financial strategies, inventory control, and the value of certified credit counseling.

Designing Your Ecommerce Website for Success: Best Examples and Guidelines

A comprehensive list of eCommerce website design examples that will inspire you and attract more buyers. Top tips and best practices at your service!

Transforming Retail with Seamless In-Store Payment Technologies

Revolutionize retail with Antom In-Store Payment. Enjoy fast, secure, and seamless transactions through innovative QR-based technology in physical stores.

2025 Trends: Digital Health Startups Leveraging eCommerce Automation

In 2025, digital health startups leverage eCommerce automation to streamline operations, enhance patient care, and drive growth in the healthcare sector.