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Merchants Payment

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When you have a company, one of the main problems you have to face is to decide which means you will use to collect money from your clients. Let’s look at the main means of merchants payment solutions that can be found in the market.


It could be considered that it is the best means of merchants payment solutions and the safest. However, it is impractical and carries the risk of theft or loss, especially for large sums, which is why little is used in the payment of invoices between companies, being reserved for businesses that sell at retail. In many European countries, cash payments are limited and this trend seems to go further afield. In many countries, it is prohibited to pay in cash for certain transactions or money sums.

Credit card

As in the previous case, it is usually reserved for businesses that sell at retail. It has the advantages of security of collection for the company once the issuer of the card approves the payment and its acceptance as a means of payment on the internet and by the final consumers. The drawbacks are the high banking commission involved, as well as the need to install a point-of-sale (POS) terminal in the company connected to the bank’s computer that allows processing (in the case of electronic commerce, the bank provides a virtual POS, that is, a specific software that allows the collection process to be performed).

Wire transfer

It is the most used method in the companies for merchants payment solutions, through which the client gives instructions to his bank to charge a certain amount of money to yours with a charge to his account. There are laws which allow you to make payments without limit of amount, between bank accounts in a fully electronic and automated way. This type of transfer can be used when the issuer and beneficiary bank accounts are located in countries belonging to the European Economic Area. As the main advantage of the transfer is that you do not pay the commission as a beneficiary. As main drawbacks are that the payment initiative is the client and that you do not have a physical document on which to initiate legal action in case of default


An instrument used by many businesses for merchants payment solutions by which the client, who issues and signs it, orders a bank in which he has an account to pay you a certain amount of money. The main advantages of the check are that you can choose the bank, among all those you work with, where to enter it; that, in case of non-payment, based on the document itself you can initiate legal actions and that if it is a “shaped” check (where the bank that has to pay it ensures the client has funds) or “banking” (where it is issued by the own banking entity that responds of its payment) you have security in the payment. As disadvantages are that the payment initiative is from the customer and that when you enter it in your account you will have to support, as a rule, a cost.

Direct debit

An instrument that allows you to collect by debiting the client’s account made in your name by the bank with which you work, for this you must have prior authorization (order of domiciliation or mandate) of the client. There are two types of direct debits: “basic” (where your client can be both a private individual and a company) and “B2B” (where your client must necessarily be a company). The main difference is that in the case of the B2B, once it is debited, the client can not request the return (in the basic it has up to 8 weeks to do it), so it is much safer for collection purposes and at the same time harder to agree with the client.

Commercial effect

The customer commits to a document to pay you an amount on a certain date. Commercial bills include mainly promissory notes and other less used documents, such as bills of exchange. As the main advantages, they allow financing through their commercial discount, as well as having a physical document on which to initiate legal actions in case of non-payment. As the main inconvenience, you have to wait to have the document signed by the client to be able to finance you or take it to the collection. Also when effects are issued “to order” you have to pay stamps (taxes).

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