There are many things to consider when opening a small business including the best payment methods available. Ideally, you want an effortless and hassle-free method for a customer’s checkout time. The right payment option will depend on many variables. Look at things like your accounting system, who’s in charge of managing the money, and what size transactions you’ll be dealing with.
ACH Direct Debit
ACH stands for Automated Clearing House and this payment method is the most streamlined of options out there. It’s where the amount of money owed for the transaction is taken straight from the client’s bank account. Direct Debit allows one-off payments and helps customers refrain from large transaction fees that happen with credit card sales. It can also schedule payment due dates, which helps with the issue of past-due payments. You should be aware that it takes three to four days to discover if the transaction was a success or failure though. This option is a secure payment method because of the “Direct Debit Guarantee,” which safeguards against unauthorized transactions.
Cash and Checks
This option has naturally decreased in popularity over the years, especially with the onset of the pandemic. Physical cash (and checks) became yesterday’s news and digital payments were the way to go. Some jobs still find cash as a suitable way of payment, including drivers, hair stylists, and other service-tailored businesses. Accounting teams tend to prefer digital types of payments because they are easier to process and are more sanitary. Accepting cash and checks to pay for goods and services just takes more time and effort to process.
Customers prefer paying for items with a credit card. If smaller companies don’t allow credit card payments as a viable option, they will lose out on worthwhile sales. One of the perks of this payment method is a quick checkout time. Clients can pay for big transactions on their credit card which lets smaller companies target a wider audience as well. There are some negative aspects to think about, like big fees, charge disputes, and cards that are declined. Fraud is also gaining in popularity for scam artists so customers will want to make sure that your business is using a secure payment gateway.
Many small businesses tend to prefer digital wallets as a payment method. This will happen a lot in start-up companies as well as the service industry. It’s easy because you’ll just need a mobile POS system for customer data and where it will print out receipts. Examples of digital wallets are Apple Pay and Google Pay which lets consumers buy things with a knock of their phone near the NFC (Near Field Communication) device. The cons to using digital wallets are large fees, and how long and how much it costs to incorporate them. Not to mention, your company will require a reader that’s equipped to handle NFC transactions and be up to date.
Sending invoices by email are common practice with freelancers after work has been finished. By having links to payment options right in the email, it sends customers to a payment page where they can input their card number and information. By using an automated system, you can design and send invoices and receipts as well as get payments. This will help keep things organized. The one problem with this option is you must rely on your client to manually pay you, which can lead to late payments.
To target the largest demographic, smaller companies need to allow for a variety of payment options. By using payment gateways on your website, it will allow for easy checkout for customers. Make sure to research different types because they vary in cost and find out the kinds of payments allowed by the gateway. If you aren’t technically inclined, you might have to employ an expert in that field to help you with the new system.
The most important challenge for any business is marketing the company and finding customers who want to patronize the business. Some customers are very particular about their preferred payment method and will choose not to do business with a company if their preferred payment method isn’t accepted. It’s truly a pity to lose a customer over the accepted payment methods at your company. Nevertheless, it’s always crucial to continuously market your company so that there’s a steady stream of new customers. One of the most effective ways to market a business is the use of Custom Printed Feather Flags, which can be personalized with promotional messages to attract new customers to the company. If you operate a small business and are in the market for Custom Feather Flags, Flagdom is a great choice: https://flagdom.com/feather-flags.
The great thing about card payments is the ease and speed it takes to process and there isn’t any added administrative effort you need to do. Choosing the correct payment options for your small business will greatly expand the success of the brand or company by engaging and keeping clients. Not only that but daily accounting and operations will run more efficiently. Let’s face it, this is a digital world, ever-evolving, and most customers prefer it to other kinds of methods.
There are many payment options available to small businesses. You’ll need to figure out the best option for your company as well as what your clients want and prefer. Keep in mind that you want payment options that will evolve and grow as your company does.