Cloud accounting software Xero has a new feature - a 'Pay Now' button on online invoices that allows customers to pay their account by credit card or PayPal.
From the customer's perspective, it's extremely simple. When viewing an online invoice, click the Pay Now button, type in the account details (eg, cardholder's name, card number and expiry date, and click the Pay button to confirm the amount.
The idea is that customers will be more likely to pay invoices immediately, improving your cash flow. And once the payment has been processed and reaches your bank account, Xero's bank feeds mean the transaction automatically shows up in your books.
Xero supports multiple payment services - eWay (coming soon), DPS Payment Express and PayPal are probably the most relevant to Australian businesses. While you can't give your customers a choice (eg, PayPal or credit card) on their invoices, it is possible to set up different invoice templates using different services.
It's up to the business to set up an account with the selected system: Xero doesn't act as a intermediary, it just connects its system with the payment services' systems. So you'll need to take their different fees and charges into account when choosing between them if you don't already have a merchant account with one of the supported services.