Accepting online payments is a must for your business – customers expect to pay invoices online in today’s digital economy.
What are online payments?
Online payments let people transfer money between bank accounts over the internet. They can use a credit or debit card, mobile payment system, digital wallet or bank transfer. Less commonly, online payments may involve cryptocurrencies or a buy now, pay later system.
Online payment methods
Online payment methods include:
Credit and debit cards
Credit cards and debit cards let businesses or individuals buy online easily. When you accept credit card payments, the money usually appears in your account within three business days.
Mobile payments
Mobile payments are made using a mobile device through apps like Apple Pay or Google Wallet, Venmo or PayPal. If a customer has mobile payment options set up, they generally tap to scan their phone rather than a card.
Digital wallets
Digital wallets are a type of mobile payment used for online transactions. However, they’re not only used on mobile devices. Digital wallets let you store and use payment details to make mobile payments or buy online.
Bank transfers
Bank transfers work when customers make payments from online banking. These transactions can also be set up as recurring payments.
Cryptocurrencies
Cryptocurrencies are alternative currencies used for online payments and investment. While some businesses accept cryptocurrency, they can be risky – you can’t be sure the currency will hold its value.
Buy now, pay later
Buy now, pay later (BNPL) allows customers to pay for a purchase in regular instalments. Popular BNPL options in New Zealand include Zip, Humm, Afterpay and Laybuy.
Methods to accept online payments
The methods used to accept payments online are relatively simple. Here’s how payment processing works:
Online credit card processing (payment gateways)
Online credit card processing is managed through a payment gateway. This software reads credit or debit card details, sends this data to the issuing bank, then transfers funds.
To accept online credit card payments, find a processing gateway that integrates with your invoice software or e-commerce software.
Online invoicing and billing
For online invoicing and billing, you can use accounting software to add a payments gateway to each invoice. This lets the customer pay online straight from their invoice.
Tip: Use MYOB to accept online payments. With MYOB, customers can pay you directly from the invoice using their mobile devices. MYOB offers many payment options for customers: Apple Pay™, Google Pay™, VISA and MasterCard. ^
Benefits of using online payments
Improved convenience: Your customers can pay invoices from any internet-connected device.
Better cash flow: Online payments are easy to track and reconcile to help you better manage cash flow.
Tip: MYOB lets you see your daily, monthly and yearly cash flow figures at a glance from your dashboard. With detailed, real-time insight into your outgoings and income, you keep tighter control of your budgets and make smarter spending decisions.
![Example of graph showing difference over time between incoming and outgoing expenses.](http://images.ctfassets.net/aguk64kkrmhj/6pjDFc9dKetIPlZ81eLFoO/34b8a603e5ebff265d25861ac9b8f543/take_payments_-_cashflow.png?fm=webp&q=75)
Smoother customer experience: Online payments let customers pay with a few clicks using their preferred payment method.
Lower transaction costs: You can also choose to surcharge your customer to cover the costs associated with online payments.
Challenges of using online payments
Compliance: You’ll need extra care to comply with personal and credit card data regulations.
Security & fraud risks: Online payments may be more vulnerable to fraud and cybersecurity breaches.
Tip: Use MYOB to solve these challenges. Our payments gateway fully complies with PCI DSS standards, keeping you compliant while securing customer data.
How to accept online payments
Here’s how to accept online payments in your business.
Identify your business needs
By identifying your business needs, you can choose the best payment methods. Will customers pay at point of sale or later via invoice? Will they buy online only or in person, too?
Factor in all transaction costs
Look carefully at fees — some payment options will be more expensive than others.
Select your payment processor
Select a payment processor that integrates seamlessly with your accounting software. This will enable you to invoice, take payments and reconcile transactions with ease.
Create, set up & configure your account
Follow your new payment processor’s instructions to set up and configure your account.
Connect the payment processor to your website
Integrate the payment processing software with your invoicing software.
Start using your online payment system
Start using the system, monitoring closely to make sure payments are going through.
Stay on top of all accounting requirements
Track all payments coming into your business – online and off – and reconcile them in your accounting software. This ensures you pay the correct amount of tax and meet other accounting requirements.
Tip: Use MYOB to set up online payments quickly and easily. ^
To get started, you’ll need to verify your business in the software and enter some information about your business. Then, just accept the terms and conditions and submit your application.
When approved, online payments will be available the next time you create an invoice. You can decide which payment options to include and whether to surcharge your customer the transaction fees. When your customer pays your invoice, the payment will be automatically reconciled in your MYOB file to save you time.
Online payment FAQs
What are the most secure online payment methods?
The most secure online payment methods are processed by reputable companies that adhere to strict security regulations, such as MYOB.
What online payment methods have the lowest transaction fees?
Bank transfers are the online payment methods with the lowest transaction fees – most banks let people make these payments for free.
How long do online payments take to process?
How long it takes to process online payments depends on the type and provider. Bank transfers can appear in your account almost immediately, whereas credit cards may take up to three business days.
Optimising online payments with MYOB
These days, online payments are a standard part of doing business — and for good reason. They’re quick and easy for customers, which makes it more likely you’ll be paid on time.
With MYOB, you can set up online payments quickly and easily. Then you can offer multiple payment options to your customers – mobile apps, credit or debit cards, bank transfers and more. By streamlining the invoicing, payment and reconciliation process, MYOB helps you focus on business growth rather than invoicing admin. Get started today.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.
^ Applications for online invoice payments are subject to approval. Online invoice payments in New Zealand is managed by MYOB and delivered by Stripe. Fees apply when clients pay their invoices with online invoice payments i.e. 2.7% + $0.25c per transaction. No set up or cancellation fees. Rate applies to VISA, MasterCard, Apple Pay and Google Pay transactions.