2. Payment Processor

If you don’t plan to sell information, coaching, products or services online, you likely don’t think you need this. However…even if you have a lawncare business or babysitting service, I’d recommend a way to have online invoicing and recurring billing available.

I’ve suggested this to my kids’ piano teacher umpteen times (technical term). I could sign in and she’d be paid directly into her account on the same day each and every month. No rebill. No ‘am I going to continue with lessons’. No ‘I forgot the check’ or bounced checks.

The less ‘friction’ you can provide to getting payment from your client, the better. That being said – this can SEEM like a complicated process and is daunting to some.

If you are going to accept currency online, you need a payment processor (think of that like the cash register at the store.) There are some stand alone payment processors (like Paypal and Clickbank) that don’t require a merchant account. However, if you use a more comprehensive cart solution, you will need a merchant provider behind the cart.

Think of the cart as the cash register and the merchant provider as the bank that will actually scan the credit card and turn it into spendable income for you. (This is not a perfect visual, but might help.)

At the bare minimum you will need your payment option to:

integrate with your website, blog or email with a ‘click here to order’ button or link
ensure secure processing and encryption for your clients
deposit to your bank account either automatically or through your request
accept major forms of payment such as Visa/MC (Disc & AmEx are optional)

Just like email services, you can find services from the simple to the complex…but some other features I find helpful are:

easy integration with my email provider (above) so an automated email goes out confirming purchase and giving ‘next steps, guarantees, contact info, etc.’
affiliate tracking (this means you are tracking referrals from online partners so you can reward them with commissions later – your software will need to be able to track this) — might not apply for you
upsell or cross-suggestion features (think like Amazon.com) for additional exposure to what you offer
intuitive reporting so you can track daily, weekly or monthly sales, returns, popular products, etc
tracking of returns, refunds, voids, etc
recurring billing for subscriptions, memberships, payment plans, etc
coupon codes for promotions, sales and loyalty rewards

Toolbox:

==> Paypal: If you aren’t using this service as a stand alone or in combination with accepting credit cards, you’re leaving money on the table. (I hate that cliche’, but it’s true.) This is a trusted gateway that has been the security standard for many households for years. Even the most ‘online skittish’ tend to trust Paypal. So integrate it into your systems.

Make sure you set up a merchant services account through them to do business with less limits. I love the ‘inventory tracking’ that is available for hard goods and the ease in creating a button using their wizards. I’ve seen that when I offer the option to pay with credit card and/or Paypal — adding Paypal increases my sales by about 30%.

The downside is that this is a payment processor ONLY, not a ‘cart’ solution. This is a start, not a total system. You cannot track affiliates, handle upsells or downsells and I still feel like their reporting is not the most user-friendly. (The merchant fees are a tad higher here too, but if you’re not having to use a ‘cart’ yet – this might be your best solution.)

==> Automation Wiz: I mentioned this one yesterday in email services, but this is also my preferred shopping cart. It does everything I mentioned above and more. What’s really great is that if you choose not to get a merchant account (yet) – you can use Paypal inside of this cart solution. Love that! (see sales increase I mentioned above).

If you want to be able to take other forms of payment, then you will need to apply for a merchant account in addition to the Cart. This cart does everything I need it to and since they’ve been around awhile and are used by thousands, I feel like they stay on top of programming, updates, integration and more. PLUS – the owner of this label, Don Schnure, is a friend and provides great tutorials and customer service! I have zero desire to leave this payment system, ever.

==> Clickbank: I’ve used this for publishing several digital products and I know several online multi-millionaires that do the same. Clickbank will help you track your affiliates, manage returns, accept all forms of payment and cut you a check without fail (as long as you are over your payment thresholds.) There are no monthly fees. You are only charged if you sell something. They offer recurring, pay your affiliates (no remember to set aside funds or write checks) and have detailed reporting. They have upsells, too

So, what’s the downside? Their fees are higher, for one. The other is that you have less control over returns and refunds. For instance, there is an iron clad, no questions asked 60 day refund policy. Your customer doesn’t have to go through you or your office, they request through Clickbank and it’s done.

Also, your product should be instantly available, so you cannot use Clickbank for physical products, merchandise, etc. And I’d advise against using it for service businesses or coaching because of the lax refund policy. Don’t get me wrong – I want my clients to be happy – but if they don’t have to go through my office…how will I know if they’re unhappy?

The setup process can be a little tricky – but once you go through it one time, you should be set. Don’t write it off, but if you have a low cost, recurring product…the fees make it hard to justify using Clickbank for that.