Using a Payment Gateway Vs Direct Bank Deposit

[Deactivated] on 27/03/2023 - 15:34
Last edited 27/03/2023 - 17:07 by 1 other user

If a person is running small local business, has relatively few transactions daily. Is it really over engineering to be using a payment gateway (and paying additional fees) over just providing my BSB and Account Number for the customer to copy paste and send me the money directly?

I have the bank statement and can easily (CTRL+F) search up transactions than dealing with the fees, processing charges and issues of having a payment gateway. I was wondering if there is an easier and cheap/free way than what I see.

What do you to manage payments efficiently?

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  Jimothy Wongingtons on 27/03/2023 - 15:45

  Well it’s up to you but many of my clients for my side gig prefer to use credit card as I don’t give accounts to them.

  If I didn’t have the option, I would say my sales would take a hit.

  Otherwise just put your price up 3 or so %?

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    [Deactivated] on 27/03/2023 - 16:17

    I have a handful who prefer to use credit card and only make payment due to convenience/ security but I offer that as a second option. Most clients are happy to make bank deposits without any issues.

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      Jimothy Wongingtons on 27/03/2023 - 16:19

      +1

      I guess to answer your question, the only easier way I know that doesnt have fees would be payid. But some folk are unfaimilar with payid.

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        [Deactivated] on 27/03/2023 - 18:14

        Yes, I am getting paid by PayID mostly.

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  askbargain on 27/03/2023 - 15:45

  Fast paced environment?

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    [Deactivated] on 27/03/2023 - 16:16

    Just a few transactions everyday.

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  Seraphin7 on 27/03/2023 - 17:49

  +2

  Everything, including this comes down to value and convenience, both for you and your customers.

  There's nothing to stop you offering BSB-based payments only.

  There's also nothing to stop some of your customers who prefer other payment methods choosing a different supplier.

  There will be an equilibrium point between those two statements in terms of your customer base, but you will need to determine what it is.

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    [Deactivated] on 27/03/2023 - 18:07

    Not many suppliers in my case. I can choose to be like the soup nazi

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      Settero on 27/03/2023 - 19:54

      you do know how that ended right ?

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        [Deactivated] on 28/03/2023 - 13:42

        Eventually it will happen. Making the most of it.

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  AustriaBargain on 27/03/2023 - 17:52

  If there's very few sales then there will be very few fees. It's easy to calculate what it will cost as a percentage of revenue. If revenue per year is 5k then even the largest fees with Squareup or Stripe will be insignificant. If revenue is a million a year then those fees will add up and as long as you are sure every client will still pay and it won't cost you sales, then sure bank transfer will save a lot of money. Squareup and Stripe and such will issue invoices automatically though, is it going to be free to do that manually? And if it will cost you one in every one hundred sales because someone won't be bothered doing bank transfer, will those lost sales actually cost you more than the fees would have?

  There's cheaper options than Square and Stripe mind, their bank probably even has a solution with lower per transaction fee, but probably has a monthly fee, plus will probably be harder to integrate into a website or app on their phone.

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  [Deactivated] on 27/03/2023 - 18:00

  Squareup and Stripe and such will issue invoices automatically though, is it going to be free to do that manually?

  Currently doing it manually. Not a big issue due to the low volume. I have stripe but at this point attempting to save on the fees. So far customers have been pretty happy doing the bank transfer. However I may have to reconsider the convenience aspect after reading your post.

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  Blokeinhisundies on 27/03/2023 - 19:11

  +1

  As a buyer I am more comfortable not using direct deposit. Much easier to dispute a transaction using a credit card or paypal etc.

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    [Deactivated] on 27/03/2023 - 20:25

    Fair. I would be as well.

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  meowsers on 27/03/2023 - 20:23

  Just give them both options. Add the fee on for card payments. Or get a Commbank account which is 1.1% for all cards…

  When you use a payment gateway (for example stripe) be absolutely sure that you are not typing in their card number onto stripe with them over the phone etc, send them an invoice and have them click to pay.

  Otherwise it counts as a card not present transaction and your risk of chargeback failure is higher, not to mention potential PCI-DSS requirements.