As more and more accounting firms look to operate virtually, having the right payment system is important. That payment system should not only be beneficial for the accounting firm, but also easy for the client to use. With the right payment system, accounting firms can get paid faster with less fees while retaining happy clients. Here we will take a look at the top forms of electronic payments, as well as the top five payment systems for accounting firms. Finally, we will take a look at how TaxDome easily integrates the most popular payment systems for accounting firms.
Types of payment options
There are two types of payment options available with the most popular payment systems: ACH and card payments. Here’s a look at the pros and cons of each payment option:
ACH or automated clearing house is an electronic payment system. This system supports debit payments and credit transfers. The main benefit with ACH is that there are no fees for the accounting firm. However, ACH may be more difficult for the client as opposed to card payments.
Credit card payments are smooth and seamless for the client. However, the downside with card payments are the fees that eat into the accounting firm’s revenue. Accounting firms will have to choose whether to absorb the fees or pass them on to the client.
Top Payment Systems
Here’s a look at the top five payment systems that accounting firms should consider. With each payment system, we have provided a look at its payment types, fees, number of transactions, and supported countries.
Stripe is the most popular payment system. However, with this popularity comes a price. An accounting firm can expect to pay higher fees on the Stripe system. However, if an accounting firm is looking for a trusted and easy-to-use payment system, then Stripe is a top choice.
Stripe provides easy credit card processing. However, PayPal is not supported. Volume discounts start for companies that make over $80,000 per month.
- Credit cards (MasterCard, Visa, Discover, and American Express)
Online: 2.9% + $.30
ACH and Bitcoin: $0.8 ($5 cap)
No monthly fee
$15 chargeback/dispute (Fee is waived if the bank rules in your favor).
Stripe is currently available in 44 countries, including first tier countries: U.S, Canada, U.K, Australia.
With Bill.com, an accounting firm can automate accounts receivable and payable with integration with Quickbooks Online and Xero. Bill.com is also popular thanks to its simple, standalone site and clear interface. The downside of Bill.com is the high fees that can be charged with low volumes.
- Credit card payments via Vantage
Essential Plan: $29.99/month
Team Account: $49.99/month
Corporate Plan: $99/month
Bill.com is supported in 136 countries and works with 106 currencies. All tier one countries, U.S., U.K., Canada, and Australia, are supported.
CPACharge is a popular platform due to its ease of use. CPACharge can also be used on top of Quickbooks, which makes it a popular choice for a number of accounting firms. In fact, over 150,000 accounting professionals currently use the CPACharge platform. The platform also includes an easy to use mobile app as well as a Bluetooth card reader/swiper.
- Credit Card
- Debit Card
- ACH payments
1.95% + $.20 for Visa and MasterCard transactions
2.95% + $.20 for specialty cards
3.5% + $.20 for American Express
0% + $2 per eCheck/ACH transaction
Card brand network fees may apply
CPACharge is available in tier one countries: (U.S., U.K., Canada, and Australia).
For those looking for a less expensive alternative to Stripe, there is Authorize.net. This payment processor offers broad support over a number of currencies, excellent security, month-to-month billing with no long contracts, and easy, flat fees. While Authorize.net is intended more for eCommerce than accounting services, CPA firms can take advantage of what Authorize.net has to offer.
- Credit Cards (Visa, MasterCard, American Express, Discover, and JCB)
- Apple Pay
All-in-one option (Merchant and payment gateway)
Monthly fee: $25
2.9% + $.30 per transaction
Payment gateway only
Monthly fee: $25
$.10 per transaction plus $.10 daily batch fee
Tailored pricing is available for accounts that process more than $500,000 per year.
Authorize.net is available in tier one countries: U.S., U.K., Canada, and Australia. The service also supports European Union countries.
Square is a top payment processor that offers both point-of-sale and online payment solutions. As a pioneer in the merchant payment processing space, Square offers some of the most innovative payment solutions. However, Square is not designed for high volume transactions and 24-hour customer service support is not available.
Credit cards, debit cards, prepaid cards, and reward cards. (Visa, MasterCard, American Express, Discover, JCP, and Union Pay)
Swiped chip fee: 2.6% + $.10 per transaction
Online fee: 2.9% + $.30 per transaction
Square is currently available in the United States, Canada, Japan, Republic of Ireland, and the United Kingdom.
TaxDome integrates top payment systems
TaxDome is a leading accounting software platform that is integrated with Stripe, QBO, and CPACharge. These payment integrations allow firms to charge clients faster via card or ACH payments. Accounting firms can avoid sending a client to a processor’s side to make a payment. All transactions are handled within the firm’s user-friendly client portal. Clients can now easily pay recurring invoices, get reminders if they forget to do so, and pay in a couple of clicks from their mobile client portal.
Learn more about how TaxDome can easily manage client paymentsJoin demo
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