There are more ways to get paid than ever before. Whilst some forms of payment can add convenience for the customer, they could be an inconvenience to you. It’s important therefore to find transaction methods that benefit you and the customer. Here are just several forms of payment and pros and cons that come with them.
Cash
Cash can be slow, fiddly and easy to miscount, but it’s traditional and many of us still use it. Accepting cash makes it easier to accept tips and can allow payments to still be made when technology is playing up. Companies that work with remote customers are probably best off going cashless – having to post cash is slow and expensive and not worth your while. However, for fast transactions, it’s still worth accepting cash.
Checks
Check are another traditional form of payment that is slowly dying out. Having to cash checks can be a nuisance and there’s always a chance that they’ll bounce. In this age of digital bank transfers, they’re pretty obsolete. Older customers may still prefer this form of payment for large sums of money – this could be a reason to cling onto checks.
Debit Card
Every company can benefit from accepting card. It’s fast, reliable and simple (especially now that contactless technology exists). There are now portable card readers that you can attach to your phone – even market traders and driving instructors have started accepting card.
Credit Card
Allowing the use of a credit card is good for large transactions as it allows people to spend money they don’t have. However, as the vendor, you do get charged per transaction. If you deal with small transactions (e.g. bars and cafes) it may not be worth your while, however for companies that deal with large payments (e.g. building contractors, car sellers) it could be worth the added fees.
Mobile Payment
It’s now possible to pay with your mobile phone – although it’s still one of the least common payment methods. If you’re buying a card reader for the first time, it could be worth buying one that accepts mobile payments too. This payment is likely to become more popular in the future, so a mobile payment reader could be a good investment.
Online Payment
If you work with remote customers, you may want to consider allowing them to pay through your website. There are lots of payment channels such as PayPal that can allow you to do this. Online payment could allow you to easily accept other currencies. It’s generally not suitable for fast direct interactions (although some bars and restaurants have started allowing people to pay via apps).
Bank Transfers
Bank transfer involve giving out your bank details and allowing them to manually move the money form your account to theirs. It can also be used to set up subscriptions. With the rise of online banking, bank transfers can be a fast form of remote payment. Of course, no one’s going to go into a coffee shop and ask to do a bank transfer – it’s better suited to large payments for services rather than products.
Gift Cards
Gift cards could be another form of payment worth considering. These are popular in the retail sector and can have lots of benefits. You can design your own custom gift cards online. These can be used in conjunction with special scanners.
Vouchers / Club Discounts
Finally, you may want to consider vouchers and club discounts. These can be fairly complex forms of payment, but they can encourage sales. Other examples may include loyalty cards and points cards that allow people a freebie after a certain amount of purchases.
Conclusion
Customers all prefer paying for their products and services in different ways. Allowing multiple payment methods can be helpful for them but you need to decide which ones are also beneficial for your business.
I hope you enjoyed this article about which payment options are right for your company to accept.
Interested in more articles about business payments frugal finance?
Read My Related Posts:
- How To Simplify Your Business Transactions
- Top Signs That It's Time To Expand Your Business
I hope you enjoyed this article about which payment options are right for your company to accept.
Interested in more articles about business payments frugal finance?
Read My Related Posts:
- How To Simplify Your Business Transactions
- Top Signs That It's Time To Expand Your Business
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