I receive check payments from some customers who mail it to me. Recently, some priority mail express packages have had to be redelivered or lost. Yes, they do lose mail! I spoke to a local mailman who told me to file a claim, but that is not the point. It is a lot of hassle to request the customer to send the check again as they ask me why don't I take their credit card. I can not afford credit card processing my margin is around 4% and bulk of it will go to Stripe, also I do not make a lot of sales. Q. What can I do to receive payments without spending a lot in transaction costs? Both I and my customers are based in the US. I do have a business checking account.

  • Are your customers business (B2B) or consumer (B2C)?
    – user71659
    Apr 29 '19 at 21:41
  • It is B2C with payment ranging between 400-2000 USD. Apr 30 '19 at 22:28
  • You could charge a payment processing fee for credit cards so you'll end up coming out even either way.
    – xyious
    May 2 '19 at 20:22
  • @xyious I have tried that before. Did not work so well in terms of conversion. My niche is very price sensitive. May 3 '19 at 21:12

For businesses paying you, ask them to send you money via automated clearinghouse (ACH). This is the same system as direct deposit and is equivalent to writing you a check. You will need to provide the routing number and account number for your bank. In fact, if you ever do business with the US Government, they are required by law to use ACH instead of sending a check.

Consumers can pay you by ACH, but most are not familiar with the system and some banks charge a fee to originate one. The consumer version is Zelle, which uses e-mail and phone numbers. Most banks support Zelle on small business accounts but large businesses do not use the system.

For huge purchases, you can use wire transfers, but those cost tens of dollars on both sides to send and receive. The benefit is that they are instant and irreversible. You typically don't use them for anything that costs less than a house.

Note that all of these services don't offer consumer protections like credit cards do. Also, some companies have simplified purchasing procedures for credit card (P-card) purchases. These services are not substitutes: if your customers really want credit card payments, then you need to adjust your cost structure to take processing fees into account. It's just cost of doing business.

  • I understand that customers like the convenience and security of a credit card. But my customers are able to sacrifice that for a much effective price and service. So, I don't plan to offer credit card processing. Can I use zelle for a business checking account? Apr 30 '19 at 22:31
  • @Hustlepreneur My bank supports Zelle on a small business account, it all depends on the bank.
    – user71659
    Apr 30 '19 at 22:47
  • Can you please name the bank you use? May 1 '19 at 4:58
  • @Hustlepreneur BofA. I just checked, they take incoming Zelle payments but not outgoing. These things may also vary by state.
    – user71659
    May 1 '19 at 5:11

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