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Keeping cash flowing is critical for businesses, but traditional invoicing can slow it down. Payment links give customers an easy way to pay and allow merchants to receive payments immediately. Independent software vendors (ISVs) and value-added resellers (VARs) who enable their customers to accept payment via payment links can add value to the solutions they provide by removing friction from settling a bill.
What are Payment Links?
Payment links enable a simple and direct payment between the consumer and merchant. Sellers can send a clickable link or a scannable code, so the customer can complete the transaction immediately. An extremely versatile tool, merchants can configure payment links for a specific customer or for a particular product or service and send them via text or email.
Instead of waiting for a paper invoice, customers can make payments for professional services, healthcare, or monthly fees with just a few clicks.
How Do Merchants Create Payment Links?
Payment links are easy to create. Once a merchant logs into their payment solution portal, they create the link, much like an invoice. They have options to customize the link for a one-time payment or to allow the customer to set up recurring payments, for example, for a membership or monthly fees. Merchants can also give customers payment choices, including credit, debit, and bank transfers.
How Secure Are Payment Links?
Payment links are very secure when they are provided by a payments company that complies with the Payment Card Industry Data Security Standard (PCI DSS). When offered by a reputable payments company, payment links use encryption and tokenization to protect card data, ensuring sensitive information is never in the merchant’s system. Merchants also have control over access, so only authorized employees can set up payment links.
Which Vertical Markets See Clear Benefits from Payment Links?
ISVs and VARs can add value to the solutions they provide to merchants in several verticals and niches:
- Professional Services
Legal, accounting, consulting, and contract organizations can replace paper invoices with payment links. They help these businesses get payments sooner, reduce accounts receivable costs, and make payments more convenient for clients. - Automotive Sales and Service
Auto dealerships can leverage payment links to set up monthly payments for car purchases or leases. They can also use payment links for one-time payments for service or parts purchases. - Health or Veterinary Care
Veterinarians can send a payment link after service to improve cash flow. Healthcare providers can use payment links for copays or services not covered by a patient’s healthcare plan. - Parking
Parking facilities can automate payment by sending a link rather than using a paper ticketing system. Facilities can also set up recurring payments for reserved parking on a monthly basis. - Field Services
Businesses like landscapers, cleaning services, and home repair can send their customers a link for immediate payment. This gives customers the convenience of paying with a card rather than a check or cash, and businesses have more secure ways of collecting what’s due. - Gym and Fitness Centers
Gyms and fitness centers can use payment links for personal training services, classes, or supplement or equipment purchases. They can also create a set-it-and-forget-it way for members to pay monthly or annual fees. - Salons and Spas
Salons and spas can use payment links to secure a deposit for services and collect final payment. This option also allows clients to pay from their phones while relaxing after treatments, rather than making them stand in a queue. - Nonprofits
Payment links make fundraising easier. Whether nonprofits need to collect membership fees, sell tickets to events, or accept donations, payment links increase efficiency and convenience. With 25% of donations now coming through mobile devices, this is a technology nonprofits can’t afford to overlook.
How ISVs and VARs Can Enable Their Merchants to Use Payment Links
The first step that ISVs and VARs need to take to offer payment links is to choose a payments partner with a solution that includes them. The best option is to choose a platform that allows your clients to create no-code pages and set up pricing and payment options. Datacap’s Brandable Payment Links allow your merchants to send them via SMS or email, with options including adding tips, fees, and surcharges.
If you serve markets where payment links offer value, or plan to expand into them, contact us to learn how you can capitalize on this budding market.
FAQs
When you create a payment link, it generates an encrypted URL. Creating a link for each transaction assures you that it is related only to that customer and the amount due. For additional security, avoid putting sensitive data in the body of the email.
Yes, a payment link is considered a card-not-present payment, so it will have higher processing fees than card-present payments that customers make in person. The increase is usually less than 1%. Merchants should evaluate the benefits of receiving payments immediately, eliminating paper invoicing costs, and other related expenses when determining the financial benefits of payment links.
Many providers, like Datacap Systems, give merchants the ability to brand payment links with their logos. Branding builds trust in the security of the process.
