Whether you own a small business or a multinational company, there are a number of different ways that you can accept payments from your customers. With advancements in technology and the internet, there are now more ways than ever for customers to pay for something. As a small business owner, getting paid from by your customers is especially important to ensure that your business can make money. Therefore, you should make sure that you can receive and accept payments easily. If you are looking to update or change your business’ payment method, here are 5 ways that your small business can accept payments.
Credit and debit cards
When it comes to accepting payments from your customers one on the easiest payment methods that can be used is with a credit or debit card. Using a credit or debit card to pay for a good or a service is one of the most popular method of payments as they are used all across the world. Credit and debit cards make it easy for customers to make a payment, whether they are paying in person or online. When it comes to setting up a credit and debit card system for your small business, it couldn’t be easier. All you will need is a card reader and a merchant account in order to take credit and debit card payments. A merchant account is a bank account that every business should have, no matter what size it is. Although using a credit or debit card is one of the most convenient and easy ways for a small business to accept payments from their customers, there are often a number of fees involved. The main fee being a credit card processing fee, which as a small business owner you will have to pay regularly. When choosing a credit and debit card system to accept payments from customers, make sure that you choose a system that offers the cheapest credit card processing fee possible. Using a system that offers the cheapest credit card processing fee will save your small business a lot of money. This also means you can accept more payments from you customers, without having to worry about the high fees that come along with it.
Using cash to pay for goods and services has always been the most popular method of payment, until the introduction of credit and debit cards a number of years ago. Cash has been used as a method of payment all over the world for a number of decades now. As a small business, accepting cash from customers as a form of payment can be very beneficial for you. Not only is it convenient and easy, but there are no additional costs involved. Unlike a credit and debit card payment you won’t have to pay a processing fee. When a customer pays for something with cash in your small business, that money can go directly into your cash register. Also, when you are a small business that accepts cash from your customers, you are actually catering to more customers. There are still a number of people across the world who do still not own a credit or debit card, and solely rely on cash to pay for their goods and services. In many countries you have to be over the age of 18 to own a credit or debit card. So, offering these customers with the choice to pay for your goods or service in cash will be extremly beneficial for your small business.
Another method of payment that you could adopt in your small business is through cheques. A cheque is a written order from an account holder, in this case your customer, instructing their bank to pay a specific amount of money to your small business for either goods or a service. This method of payment is extremly effective as it allows customers to safely make large purchases. Although this is a safe and secure method that customers can use to make a payment, it may not be suited to your small business. Cheques are only really used for purchases of a large sum of money, for example a car or designer clothing. Therefore, if the products or service that you offer in your small business is of a low price then accepting cheques from your customers may not be worth it.
Over the past few years, mobile payments have become a popular method of payment for customers all over the world. With advancements in both mobile phones and the internet it now means that customers can pay for goods and services with their mobile phones. Many mobile phones allow users to download an online banking application that is linked to their bank account. To accept mobile payments at your small business all that you are required to have is a merchant service. Offering your customers with the option to pay through their mobile phone will allow them to make a payment quickly and securely. It is also a great method of payment as it allows foreign travellers to pay for goods without the hassle of exchanging currencies. Although if you allow customers to use mobile payments to make a purchase in your small business you may have to pay a transaction fee. This transaction few is usually small and is a percentage of the overall cost of the customers transaction.
Along with mobile payments, the introduction of PayPal has now changed the way that many people across the world pay for their goods and services. PayPal was created a number of years ago and is an easy and quick method of payment for customers. A customer can use PayPal to pay for goods both in store and online, which would be extremly beneficial for your small business. This method of payment uses a mobile app that is linked to the customers bank account, making it a convenient method of payment for customers. PayPal is also easy to setup and use for a small business and does not require your business to have a merchant account. Using PayPal in your small business also allows gives you the option to set up recurring payments. This means if you have a customer who makes repeat purchases on a regular basis, it will allow your small business to receive payment without the customer actually having to make the payment each time. Although PayPal is an effective method of payment for customers, as a small business you may have to pay some fees for chargebacks, which is a reversal of charge that is made after a customer completes a purchase.
As you can see there are a number of different payment methods that you can choose from for your small business. Each method of payment comes with its own set of benefits, meaning whatever method you choose to use in your small business will be beneficial. Having an easy and effective method for accepting payments from your customers will not only help your small business to increase its profits and grow as a business, but it will also help to improve the customers experience within your small business.
Ella Woodward is an entrepreneur who has built a career as a freelance writer and building a business from her skill with words and understanding of the needs of corporate readers.