As you configure the foundations of your online alcohol sales business, one of your first considerations should involve how you plan to get paid. 

There are two basic options available to you: direct payment processing and third-party platforms. 

Learn about each so that you can make the right decision for your company.

Pros of direct payment processing

Direct payment processing gives you more control, lower fees, faster payouts, and access to analytics data. 

More control and customization

You have the freedom to choose your own payment provider and control the entire payment flow. This includes customizing the checkout experience and integrating with your existing inventory and customer relationship management systems.

Lower fees and faster payouts

If your business has high alcohol sales volumes, you might be able to negotiate lower transaction fees. Additionally, you can look forward to faster access to your funds. 

Better data

The icing on the cake is that you have direct access to your transaction data, enabling you to analyze customer behavior and come up with better marketing strategies.

Cons of direct payment processing

Disadvantages include a harder setup, increased compliance responsibilities, higher risk for chargebacks, and potential account termination.

Harder set up

On the downside, setting up the configuration may be more involved and costly. 

Compliance

As the master of your own payment processing, you will bear more direct responsibility for compliance with payment card industry standards. 

As an alcohol seller, your merchant account provider will classify your business as “high-risk.” This leads to higher fees, a longer application process, and the possibility of needing a reserve account.

Potential account termination

This can be time-consuming and expensive, and if there are too many, it could lead to account suspension or termination. This can make it more difficult to scale your business.

Pros of third-party payment platforms

These platforms handle the payment process for you. Setup is simple, PCI compliance burdens are reduced, payment options are extensive, and you can take advantage of fraud protection and simplified reporting. 

Simple setup

When you use third-party providers, they act on your behalf, offering a turnkey solution that handles payments for you. Setup is fast and affordable. 

More payment options

Typically, numerous payment options are available, with systems safeguarded by robust fraud protection precautions. Multiple currency acceptance expands your global reach. 

Simplified reporting

Meanwhile, you still have simplified data analytics and reporting features to assist with marketing and forecasting.

Cons of third-party payment platforms

However, you could experience higher fees, less control, dependency on the provider, fund holds, account freezing, and limited support.

Higher fees

You can expect higher transaction fees while having less ability to control the checkout experience or customize how buyers interact with your brand. 

Cash flow and holds

Your cash flow might be impeded by funds holds, and your high-risk account might be frozen or terminated if the provider determines that your risk level is too high. 

Limited support

Finally, some providers might not have the niche knowledge to furnish the level of support you need to navigate the highly regulated alcohol industry.

Which is better for your business?

As you evaluate your payment processing options, consider your business’s unique requirements. Focus on aspects such as cost, your desired level of control, technical expertise, and scalability. 

A thorough review of these considerations will help you to make the best decision for your alcohol business and your future customers.