Business payments aren’t one-size-fits-all, and different payments require different approaches. Because of this, the best payment platform for small business owners is one that offers a range of payment options, including debit and credit cards, digital wallets, ACH, wires, and checks. Below, we’ll compare different payment types and solutions that’ll help maximize conversions, minimize fees, and keep your cash outflows predictable.
What you need to know
- A mix of payment types is best for handling different situations—e.g., business debit or credit card for in-person purchases, ACH for recurring payments, and wires for large, time-sensitive transfers.
- To start sending business payments, open a business checking account that provides detailed transaction and tax information, multiple payment options, and a payment terminal or gateway.
- Bluevine Business Checking offers physical and virtual debit cards, standard and same-day ACH, domestic and international wires, and check payments.
Comparison of small business payment solutions
There is no one best way for all small business owners to send payments. However, a mixed strategy involving several options for different purposes is best for most. Bluevine supports debit and credit cards, digital wallets, standard and same-day ACH, wire, and check payments.
Here are the pros and cons of the most common ways for small business owners to send payments:
Debit and credit card
You can send business payments via debit or credit card at any point-of-sale (POS) terminal or online payment portal. Credit cards often provide cash back on certain purchases and perks on travel, dining, insurance, and other business expenses. Some online payment platforms, including Bluevine, will also allow you to issue additional cards to employees.
Debit and credit card payments are best for: in-person and online purchases, travel and other cash back–eligible expenses, small recurring subscriptions
| Debit and credit card payments for small businesses | ||
| Pros | Cons | |
| Convenience | Familiar and easy, near-universally accepted, issue multiple cards or quick reimbursements to employees | High credit usage can limit purchase size or harm your business credit |
| Your fees | No fees to pay (unless recipient charges their credit card surcharge to you), receive cash back and other rewards | Some business credit cards charge an annual fee for additional perks |
| Payee fees & funds availability | Funds available in 1–3 days | Recipient pays fees per transaction |
| Security | Very secure: fraud-detection by several federally regulated institutions | – |
Did you know?
With Bluevine Business Checking, you can issue up to 50 physical and virtual debit cards for your main account and sub-accounts. Plus, easily set spend limits and restrictions for employee cards.
Digital wallet or virtual card
You can make business payments via your digital wallet (Apple Pay, Google Pay, Samsung Pay) at any tap-to-pay-enabled terminal or online payment portal. All your credit card benefits are available, and your transaction information will be scrambled for further protection from hacking. Virtual cards (including additional cards issued to employees) are able to make purchases as soon as they’ve been activated on your digital wallet.
Virtual card payments are best for: tap-to-pay or online purchases, single-use vendor payments, employee expenses
| Virtual card payments for small businesses | ||
| Pros | Cons | |
| Convenience | Familiar and easy, accepted at any tap-to-pay or digital portal | High credit usage can limit purchase size or harm business credit |
| Your fees | No fees to pay (unless recipient charges their credit card surcharge to you) | Some business credit cards charge an annual fee for additional perks |
| Payee fees & funds availability | Funds available in 1–3 days | Recipient pays fees per transaction |
| Security | Extremely secure: standard credit card security + biometrics and scrambled card information | – |
ACH transfer
When you send an ACH transfer, your money is securely sent from your banking account to another via an automated clearing house, which processes all ACH payments in batches throughout the business day. You can automate recurring payments by authorizing ACH direct debit, which pulls funds directly from your account each payment term. (Same-day ACH is also available for time-sensitive payments.) ACH payments can only be sent within the United States.
Standard ACH payments are best for: recurring payments (payroll, rent), high-value or high-volume transfers
| Standard ACH payments for small businesses | ||
| Pros | Cons | |
| Convenience | Offered by almost all banking providers, easily automated | Returns are slower to resolve |
| Your fees | Free or very low cost to send | – |
| Payee fees & funds availability | Free to receive, funds available in 1–3 business days | – |
| Security | Very secure, transfers federally regulated and facilitated by non-profit Nacha | – |
| Same-day ACH payments for small businesses | ||
| Pros | Cons | |
| Convenience | Offered by many banking providers | Returns are slower to resolve |
| Your fees | – | Moderate fees to send, up to $10 |
| Payee fees & funds availability | Free to receive, funds available same business day | – |
| Security | Very secure, transfers federally regulated and facilitated by non-profit Nacha | – |
Wire transfer
A wire payment is a direct electronic transfer between two accounts that can be securely sent domestically or internationally. Wire transfers are a more expensive payment option, but are also one of the fastest and safest ways to send a large payment.
Wire transfer payments are best for: large, time-sensitive, or international vendor payments
| Wire transfer payments for small businesses | ||
| Pros | Cons | |
| Convenience | Accepted by most banking accounts, globally | Returns are slow to resolve |
| Your fees | – | High fees to send, up to $25 for domestic wire, more for international |
| Payee fees & funds availability | Extremely fast, funds available within 1 business day | Recipient pays high fees to receive, up to $15 for domestic wire, more for international |
| Security | Extremely secure, funds go directly from one bank account into another | – |
Did you know?
You can easily send and receive international payments in as fast as 24 hours with Bluevine.
Check
One of the oldest forms of payment, checks are bills of exchange that order a banking provider to issue funds from one account into another. They tend to have lower processing fees and don’t require technology to use, though options like mobile deposit have made them a convenient option for sending business payments. If you don’t want to manually write checks, some banking providers will write and send checks on your behalf, for a small fee.
Check payments are best for: one-time payments or reimbursements, payments to low-tech vendors or vendors that want a paper trail or decentralized payment option
| Check payments for small businesses | ||
| Pros | Cons | |
| Convenience | Familiar, no technology required, physical record of transaction, choose when to begin payment processing | Manual process requires printing, signing, mailing; harder to automate at scale |
| Your fees | No fees to write and send yourself, small fee for banking provider to write and send on your behalf | Requires paid checkbooks and postage |
| Payee fees & funds availability | Free to receive/deposit | Slower to cash, funds available in 1–7 days, bank may hold funds |
| Security | Very secure, decentralized exchange network with no central authority, provides physical record | Physical checks vulnerable to postal delays or misplacing |
Cryptocurrency or stablecoin
Cryptocurrency payments are made using digital assets such as Bitcoin, Ether, or Tether, which are exchanged on decentralized networks called blockchains. These networks (and all transactions made on them) are publicly accessible at any time, permanent, and can only be edited via an electronic consensus mechanism. Your funds are stored in a crypto wallet or exchange, which are largely unregulated, lack federal protections, and require you to manage a private key to access your funds. While some cryptocurrencies are highly volatile, stablecoins are cryptocurrencies whose value is based on a specific asset—for example, the value of Tether is tied to the US dollar.
Stablecoin payments are best for: payments to crypto-native vendors, international payments to vendors in nations with unreliable banking systems
| Cryptocurrency or stablecoin payments for small businesses | ||
| Pros | Cons | |
| Convenience | Available globally and 24/7, doesn’t require banking account | Non-banking account transfers require technical set-up and knowledge, not widely accepted, transaction errors can’t be reversed (only re-written) |
| Your fees | Potentially low fees to send (depending on chain and exchange) | |
| Payee fees & funds availability | Funds available instantly or up to several hours on most chains, including internationally | Possible fees to convert to fiat currency, cryptocurrency value can fluctuate during settlement |
| Security | Varies, decentralized exchange network with no central authority | Varies, little legal protection, exchanges vulnerable to hacking, private key required to access funds with no second option |
Mobile payment app
Simple and mobile-first, mobile payment apps like Venmo and Cash App allow for fast peer-to-peer payments—provided your vendor is using the same app.
Venmo and Cash App payments are best for: small one-time payments, quick reimbursements between individuals
| Venmo and Cash App payments for small businesses | ||
| Pros | Cons | |
| Convenience | Extremely easy and convenient, fast refunds | Can only send funds to users of the same app, privacy/social features need to be switched off for business payments |
| Your fees | Free to send | |
| Payee fees & funds availability | Funds instantly available in app wallet, 1–3 days to transfer funds to business checking account | Moderate-to-high fees to receive, 1.9% or more + fixed fees per transaction, moderate fee for quick transfers to banking account |
| Security | Mixed, app features 2FA and biometrics, payments are encrypted | Mixed, in-app funds are not FDIC-insured, accounts vulnerable to hacking |
The best payment solution for small businesses
The best payment platform for small business owners will offer a mix of different payment methods that allow the owner to pay vendors while maximizing speed and convenience and minimizing cost. Bluevine Business Checking supports debit and credit cards, digital wallets, standard and same-day ACH, wire, and check payments for small business owners.
The best type of payment to send for any one transaction will depend on your immediate needs. Here are some common scenarios and the best payment solution for each of them:
- One-time, instant, in-person payments → Debit or credit card (physical or virtual)
- Low-cost recurring payouts to vendors → ACH direct debit
- Large, urgent, or international payments → Wire
- Legacy vendors or vendors with a paper requirement → Check
- Very small transfers between individuals → Venmo or Cash App
Tips for startups to save time and money on payments
If you’re a first-time startup owner, follow these four tips to quickly prepare your business to pay vendors:
- Open a business checking account. This is required for card, ACH, wire, and check payments. It will also help you build business credit by separating your personal and business finances.
- Use sub-accounts for different operating expenses. Platforms like Bluevine allow you to open sub-accounts with unique account numbers, so you can separate your budgets for payroll, operating expenses, and vendor payments within one main business checking account.
- Automate payroll and recurring vendor payments. Most business banking platforms allow you to easily set up recurring payments and any associated actions like tax withholdings and direct debit. Automating these payments saves you time and eliminates human error.
- Plan for tax/record keeping. Make sure your business checking account offers detailed, exportable transaction information and syncs with common accounting platforms like QuickBooks Online.
See why Bluevine could be the best payment solution for your small business.
