Stripe, PayPal and others allow website owners to accept payments online; each comes with different transaction fees and this article will help you select which option best meets your needs.
Squarespace supports additional payment processors such as Afterpay and Clearpay – buy now, pay later companies that act as lenders.
Stripe
Stripe is an established payment processor offering an extensive suite of features for both online and in-person sales, from developer tools and APIs for integration, through customization options, to tracking daily earnings, new customers, payments and sharing access among team members.
Stripe offers you the ability to accept payments in over 135 currencies. This enables you to charge customers in their native currency for enhanced customer satisfaction and increased sales. Furthermore, Stripe supports various other payment methods like bank transfers and debit cards as well as buy now pay later services, bank redirections and vouchers.
Stripe has recently introduced Terminal, an on-site point-of-sale (POS) device similar to Square. Terminal follows Square’s pricing structure by charging $0.30 per transaction and 2.9% of processed total amount; making it ideal for businesses that conduct the majority of their transactions online.
When selecting a payment gateway, it is crucial that you understand all costs associated with processing credit card payments. If you opt for flat rate pricing plans, knowing what your average interchange and card type costs are will enable you to push back against any fee increases that arise – this information can be obtained by reaching out to a Stripe account representative or using their online portal.
PayPal
One of the key decisions when starting an online business is choosing how to accept payments. There are many options available, from Stripe or PayPal – both offering various features – with different price structures for each option, so it is vitally important that you fully understand each before making your choice.
PayPal is an ideal solution for selling products and services online, as customers can pay in multiple currencies. Furthermore, its secure environment makes it ideal for small businesses looking to protect customer data. Furthermore, customers can easily add items to their cart with one click; plus you can even create personalized payment pages to reflect your brand.
Afterpay and Clearpay provide customers with the opportunity to purchase high-value items in installments, providing a great way to encourage customer purchases and boost sales; however, these payment processors aren’t widely used within the US market and may come with their own risks.
Squarespace differs from Stripe by not charging transaction fees when payments are made through their site, although a flat order fee applies if selling digital products. As plan charges vary depending on sales volume and product pricing, it’s wise to assess these factors prior to selecting your plan.
Integrating payment processing options into your Squarespace site can be as easy as signing in and selecting a processor, activating payment settings and accepting orders. Plus, the Squarespace app includes an in-person sales feature to complete this process!
Afterpay
Buy now, pay later (BNPL) services are an attractive way for shoppers to finance their purchases, yet they come with risks for consumers. Many users fail to manage their debt responsibly and end up with large bills they cannot repay. Furthermore, these services often increase credit card spending as well as encourage impulse buying.
Even with its downsides, BNPL services remain an effective means of increasing sales and decreasing cart abandonment. They are particularly useful for targeting younger buyers with poor credit who may not qualify for loans or lines of credit; however, transaction fees associated with using this payment method tend to double those charged for using other payment methods.
Square, the US FinTech giant, recently purchased Afterpay – an instalment payment provider to subscription services such as Boxycharm and Fabletics – giving it greater market reach within America. The acquisition will likely give Afterpay more exposure in this country.
Merchants utilizing BNPL services can customize the terms of their agreements to match business goals and customer preferences, finding a balance between affordability for customers and profitability for businesses. Furthermore, maximum financing durations can be set in order to encourage timely repayment and minimize outstanding balances.
Responsibility of both parties involved in an agreement includes abiding by relevant laws and regulations. For example, merchants should ensure they use the BNPL service in compliance with applicable data protection laws, while providers of this service must maintain records of transactions covered under their agreement and make them available upon request from Supervisory Authorities.
Clearpay
Clearpay offers customers a convenient payment plan with zero percent interest. Customers pay their initial installment at time of purchase, with subsequent payments automatically deducted every two weeks from their bank account. As well as helping attract and retain more customers, Clearpay reduces cart abandonment while helping grow your business – all available physical products can easily be included within it’s scope and enabled within minutes!
Enabling Clearpay on your Square site is free and requires no technical setup. Simply set it up so it appears as an additional checkout option for online stores, in-person POS terminals and virtual terminals – customers can then use Clearpay when they place orders or via links sent via email or SMS text messages; additionally it also supports offline payments in your Square POS.
Clearpay can bring many benefits to your business; their website outlines them perfectly. Customers who use Clearpay spend 40% more per transaction and shop 50% more frequently than traditional customers, leading to increased brand loyalty and reduced return rates. Furthermore, Clearpay helps grow your business by bringing highly qualified organic traffic that is likely to make repeat purchases.
Depending on the payment types you accept and your location, merchant fees for third-party processors such as Stripe or PayPal may differ depending on what rates apply to your business. Be sure to look at your country’s merchant fees to learn which rates pertain. Additionally, shipping costs and other costs must also be factored in to calculate total fees per sale.
BNPL
BNPL (buy now, pay later) services offer consumers an easy and attractive means of financing their purchases. Available online, these services allow shoppers to split the cost into multiple installments which are typically due every two weeks. Compared to credit cards, they typically feature lower interest rates and more accommodating terms; additionally they often don’t require hard credit pulls when applying – making BNPL increasingly popular among both consumers and retailers alike.
While BNPL may make spending easier, its financial implications should not be overlooked. Consumers must be wary of its risks – including overspending and excessive fees – as some providers don’t always make clear how much a user owes when making purchases; as a result they could incur unexpected charges that quickly add up to large sums.
To use a BNPL service, a customer will fill out a short application on the checkout page of their favorite retailer and provide their name, address, phone number and Social Security Number in addition to payment method details. Depending on their provider, their application could be approved or denied within seconds; some even offer instant approvals for specific groups like millennials and Gen Z shoppers!
Most BNPL services do not charge upfront fees; however, some require a minimal down payment at time of sale, which typically ranges from 0%-70% of total purchase cost. Furthermore, companies operating as BNPL generate revenue through transaction fees from merchants, late payments from users, development costs, and operational expenses.
