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Getting paid is the foundation of any business. But if you’re just starting out, the world of payments may feel a bit overwhelming. If you’ve been operating your business for years, you may even notice that the payments landscape is constantly changing. But not to worry – this guide walks you through everything you need to know about payments as a business owner.
What is payment processing?
Ever tapped your card or phone and walked away with your coffee in seconds? That’s payment processing in action.
It’s the tech behind the scenes that moves money from your customer’s account to yours when they make a purchase. Your payment processor securely verifies the transaction, transfers the funds and ensures you get paid.
To accept and manage payments, you need a point-of-sale system (POS) that connects with a payment processor. The two work together: your POS handles the sale, while the processor moves the money.
What to look for when choosing a point-of-sale system
A POS includes hardware (to process payments) and software (to help you manage sales, inventory and more). Your POS system also takes care of directing your funds to your bank account after you make a sale.
A good POS does more than just accept payments – it can help you run your business from top to bottom. Think of your POS as a command centre for your business.
Here’s what to look for when choosing a POS:
- Accepts multiple payment types: With Australia rapidly becoming a cashless society, accepting not only cash but also cards and mobile wallets is essential.
- Helps manage your business: Look for a POS with features like sales reporting and analytics, inventory management, rostering, and even email marketing and a loyalty program.
- Gets your money to you quickly: After a sale, your POS should deposit funds straight to your bank account without delays.
How to access your earnings
To access the money you earn from sales, you need to link your POS to your bank account. This is quick and simple with Square. It can take up to five business days to verify your bank account, but during this time, you can still accept payments with your POS – Square will hold your funds and transfer them as soon as your bank account is linked and verified. Read more about how to connect your bank account to Square.
Reliable, fast transfers are key to keeping your cash flow healthy. Square deposits your money as soon as the next day, for free. Need it even faster? You can transfer funds instantly for a small fee. If your business has unique hours, you can customise your ‘close of day’ (the time you choose to close your business each day) to ensure your full day’s sales are grouped in one transfer.
How to manage receipts
You need to give your customers a record of their transaction (or offer to do so). Your POS should be able to take care of that as well, either through a paper receipt printer or through digital receipts sent via SMS or email.
Increasingly, businesses and customers prefer digital receipts for payment confirmation; they save paper and reduce reliance on secondary hardware and connectivity. They’re also a lot easier to keep track of (because, let’s be honest, paper receipts often end up in the bin).
Receipts have seen a revolution in recent years. Not only are digital receipts convenient, but they can also offer features like customer feedback to improve customer service.
In addition to all the transaction details (including taxes, fees or any discounts), your receipts should include your business’ name and contact information.
Square digital receipts (which you can SMS or email to a customer directly after you make a sale) also come packed with other goodies – including a place where customers can quickly send you feedback about their experience. Read about all the features of Square receipts.
How to manage invoices
If you offer services as part of your business, it’s likely you need to create and send invoices to get paid. Just as with receipts, you can opt for paper or digital invoices.
On your invoices, always ensure you include:
- Your business details (name, physical address, contact info, and ABN if needed)
- The customer’s details (full name and contact info)
- The invoice number and date (for your records)
- Payment terms (specifically outlining when you expect to be paid)
- The price, description and quantity of the items/services
- Any taxes, fees or discounts
By providing a more robust level of detail, you’re helping to protect your business against chargebacks.
Invoices are an extension of your brand, and the right templates can help establish a sense of trust and professionalism.
As with receipts, it’s much more streamlined to use digital invoicing. Square has professional-looking, ready-to-go invoice templates that you can email to clients. From there, they can pay you by card, bank transfer or digital wallet with a click. You can also keep track of all your invoices in one place in your Square Dashboard – and sort them by what’s been paid and what’s outstanding. Learn more about Square Invoices.
How to manage chargebacks
Chargebacks occur when customers dispute a transaction on their statement with their card-issuing bank. People contest charges for a number of reasons: Perhaps they don’t recognise the charge, or feel the services supplied didn’t meet their expectations. Whatever the reason, the process can be a headache for business owners.
When there’s a chargeback, the funds in dispute are held from the seller while the card issuer works things out and decides what to do. ‘Working things out’ can be a complicated, slow and time-consuming process involving a lot of paperwork and documentation.
Protect your business by providing a high level of detail on your customer’s invoice or receipt, as well as keeping a paper trail (whether that’s physical or digital). This can help you build a strong case to respond to a transaction dispute. Read the top FAQs for resolving payment disputes to help you better understand and navigate the process.
Payment types to accept at your business
With very few customers carrying around cash nowadays, accepting card and digital payments is a given for most businesses. Future-proof your payment processing by ensuring you can accept a variety of payments that come across the countertop.
Debit and credit cards
Paying by card is the go-to for Aussies, with credit and debit card payments making up 73% of transaction volume in 2023. So, taking debit and credit card payments is a no-brainer for your business. It’s fast, convenient, reliable and secure.
Even if you’re on a shoestring budget, it’s easy to get set up to accept debit and credit cards. Square offers affordable payment processing hardware starting at $65, with a simple 1.6% fee per tapped or inserted card payment.
How to accept international credit cards
Ideally, your payment processor and POS should be able to accept any credit card – that includes international credit cards from tourists, too. Check the processing fee and any other costs when accepting international credit cards. Some payment providers may charge you a higher fee than what you’d pay to accept an Australian credit or debit card.
There are no hidden costs with Square – local or international, you pay the same low 1.6% fee for Visa, Mastercard, American Express and JCB.
Mobile wallets
More than one-third of retail sales are now made using digital wallet payments. Customers love them because they’re quick and secure, and all they need is their phone to pay.
Instead of using a physical debit or credit card, customers tap their smartphone or smartwatch on the card reader, using a mobile wallet app like Apple Pay, Google Pay or Samsung Pay.
To accept mobile payments, you’ll need a POS that supports contactless payments. Square’s POS hardware makes it easy, with a range of options to suit your budget and needs. Plus, you’ll get built-in data security, 24/7 fraud protection and payment dispute management at no extra cost.
Buy now, pay later
Offering buy now, pay later (BNPL) as a payment option can help make purchases easier for your customers. BNPL services like Afterpay let customers split their purchases over time, usually interest-free – while you still get paid in full upfront.
Benefits of offering BNPL:
- Customers tend to spend more – Afterpay users have an 18% higher average order value.
- Appeals to younger, tech-savvy shoppers – BNPL is especially popular with Millennials and Gen Z.
- Great for high-ticket items – it makes larger purchases more manageable.
Afterpay payments work just like contactless payments; customers tap their phone using the Afterpay app or an Afterpay card in their mobile wallet. The good news is that you can accept Afterpay with any Square POS hardware – simply follow this help article to enable and accept Afterpay in-person payments.
Bonus Tip
Letting your customers know you accept all major cards (Visa, Mastercard, Amex, etc.), mobile wallets (Apple Pay, Google Pay) and Afterpay helps boost trust and encourage sales. You can order a free marketing kit from Square, which comes with stickers and a table tent to display these payment brands at your business window/door and countertop.
How to process payments on the go
The ability to accept debit and credit card payments while you’re on the go can get you paid faster and reduce your time issuing invoices after a long work day. Square Reader is small enough to fit in your pocket, packs a powerful battery and is affordable ($65) – ideal for markets, events or mobile services.
Just connect it to your iOS or Android device via Bluetooth, and your customer can tap their card or phone, or insert their card, and check out in seconds.
How to process payments at the counter
A streamlined countertop can completely transform the way your business operates. A fully integrated POS and payments solution that gives you everything you need to power your checkout process and run your business – such as Square Register, Square Stand or Square Terminal – can ensure you’re set up to accept every payment, whether it’s card, contactless or mobile wallet.
Your countertop POS is designed with different needs and use cases in mind. Your POS should complement your business environment without creating a barrier between you and your customer. It should also allow you to connect compatible hardware – barcode scanners, receipt printers, whatever your business needs – to improve the customer and staff experience.
If you’d like to get your staff out from behind the counter and accepting payments directly with customers on the shop floor, you can combine a countertop POS with a mobile POS (using Square Reader or Square Terminal, for example) to provide an improved level of customer service.
For busy businesses, pairing your POS with a self-service kiosk (like Square Kiosk) can help speed up service, free up staff and reduce bottlenecks at the counter. Customers can place and pay for orders themselves, or staff can use it to punch in orders without crowding the checkout.
You can pick up Square products in major retail stores, such as JB Hi-Fi, Officeworks, Harvey Norman, Bunnings and more (check their stock before visiting to ensure the hardware you’re after is available!). You can also order online with free shipping anywhere in Australia.
