I think it is a no brainer that for anyone starting an online business that one of the must-haves is a merchant account that provides credit card processing.  It also goes without saying that the ability to handle the exchange of finances immediately reduces any delays in payment and being able to collect the cash from your sales is always good.  The only issue with this is that some people (like my Dad) are wary of using their credit cards to purchase products online because of fraud.  Not offering an alternative means of payment could mean the loss of a potential customer who might otherwise have been willing to shop at your website.

So what other options are there for paying online if you don’t use a credit card? 

Well, there is Paypal, but not everyone has a Paypal account.  Sure they could sign up for a free Paypal account but that would also mean that they would have to link their credit card to it online which is then not very much different if their original objection was against using a credit card online.  While you could argue that Paypal represents a trustworthy brand name, I could also tell you that someone like my Dad wouldn’t know the difference between Paypal and Brand X. 

What I found really interesting is that there is a way that you can give your consumers the option of using online cheques to pay for products or services that you offer.  It is even better than receiving a paper cheque because you don’t have the risk of accepting a bad cheque as the system will decline any high-risk transactions.  Unlike paper cheques there are less errors due to incorrect data entry, and because it automatically fills in your business name on the cheque, there is no mistake where the money is being sent to.  It also transfers the funds automatically from the customer’s account to the merchant account to reduce any payment delays.

Since this facility comes together with a regular credit card service, you don’t have the complication of having to run two merchant accounts side by side.  It is definitely worth considering if you are serious about running an internet business.