Starting an Online Business? Use PayPal or Dwolla or SOMETHING

If you are starting an online business, you need to use some sort of third-party payment system, like PayPal or Dwolla.

Recently, I did business with a home business owner in my area. When it came time to pay for the product I wanted, I asked if the owner had PayPal. I could just zip the money over to her.

Unfortunately, she said that she didn't have PayPal. In order to pay for my order, I'm going to have to make a trip with the money. Even though she doesn't sell much online (and she really probably should), it would still be nice if she accepted some sort of electronic payment. It's more convenient, and in a world where convenience rules, a home business needs to make it easy for customers to pay.

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Accepting Third Party Payment Processors for your Online Business

If you have an online business, you?need to accept a third-party payment processor. I accept PayPal. I like PayPal. It's worked well for me for years, and using it with Freshbooks has provided me with a way to save on the fees.

PayPal isn't the only third-party processor out there, though. It's possible to use Amazon Payments and Google Checkout as well. And there is the up-and-coming Dwolla. Some of these processors, like PayPal also make it possible for you to accept credit cards on top of payments through the processor. Others, like Dwolla, limit the forms of payment you can use.

For the most part, accepting third-party processors provides you with a way to add convenience and simplicity to your transactions. I love it when I visit an online retailer and I can use PayPal. It makes my life easier. (PayPal is also branching out to offline transactions, which is pretty cool.)

If you have an online business — and even if you have home business that doesn't do a lot of business online — consider accepting third-party payment processors. At the very least, make sure that you can accept P2P payments.

Fewer customers are carrying around cash, and that means that you don't want to be caught in a bind. What if your customer doesn't want to pay cash? What if your customer doesn't want to make a trip to the bank for cash, and then make a trip to meet you so that you can complete your business exchange?

Money TreeConsider your customer base and your clients. Think about what would make it easier for them to pay. Offering more payment choices is generally a good thing. And you don't even have to make credit cards one of them. If you can accept PayPal, Dwolla, or P2P payments, it will make your customers' lives much happier, and it will make it easier for you to expand your online business.

6 thoughts on “Starting an Online Business? Use PayPal or Dwolla or SOMETHING”

  1. Grayson @ Debt Roundup

    Third-party payments are crucial. When I had my online store, I had quite a few options because people want them. I would always make sure I had the most that I could because I didn’t want to miss out on any opportunities.

    1. Miranda Marquit

      🙂 I have a few clients who send checks. It’s a little odd, but whatever. I just tell myself it means fewer fees.

  2. Alan@escapingmydebt

    I agree with Grayson. I have done some dabbling with online selling. I accepted checks but made it clear it will delay the process as I will wait for check to clear before I released the product. Glad you mentioned Dwolla, I have never heard of it before.

  3. Miranda-

    In your new “home business” is your office in your bed? I’ll bet you advertise on Craigslist too….

    1. Miranda Marquit

      “New” home business? My freelance writing business has been in place, as an LLC, since 2007, and before that I was a sole proprietor beginning in 2004. I wouldn’t call my business “new.” Although sometimes I do work from the couch, or a hotel room, most of it is done in my dedicated home office space.

      I think I did once buy something locally off Craig’s List, but I’ve never used it to sell anything.

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