The best payment method for your small business will depend on some factors such as the size of your transactions, the person handling the money, and your accounting system. If you have decided to receive card payments, consider using the best credit card processing company for payments. The following are some payment options that may fit your small business.
According to studies, 75% of consumers prefer paying with a card. Card payment has become the primary way consumers pay for purchases today whether it’s a debit or credit card. People can finance large transactions benefiting both small and large businesses. Card payments broaden your customer base and legitimize your company however small it is.
It can also help improve your cash flow if the money is deposited into your bank account quickly. Credit card payments offer security, hygiene, and customer preferences. Customers can dispute credit card charges if they are unhappy with your product. Each credit card company has different rates with visa and master card leading the way.
Online payments occur electronically and they use a payment getaway to facilitate several types of payments such as credit cards, debit cards, and e-checks. In most cases, online payments are only restricted to online businesses. Online payments are efficient in terms of cost and convenience.
They are an easy and cheap way to get paid and give consumers options when they check out. The fees charged to accept payment online are more affordable than those charged by credit card companies. Some providers offer free shopping carts to small businesses. Digital wallets have enabled contactless payments which use near-field communication for in-person payments.
Mobile payment is great for businesses working outside an office setting such as construction companies and landscaping. With mobile payment, you can receive payments quickly and in person.
In some cases, you have to invest in a mobile card reader that is plugged in your phone and connected via Bluetooth, and works with a mobile app to process credit and debit payments through a smartphone from anywhere. Some mobile payment transactions are wireless via mobile phones, you don’t need an app to complete the transaction. Money is transferred directly with just one click.
Cash payment has been the primary means of payment before the introduction of digital methods. For small businesses cash payment option is efficient because business owners will receive cash immediately instead of waiting for transactions to clear. There are no fees associated with accepting cash from customers.
Credit cards can be costly for small businesses with slim profit margins. Running a cash-only business helps small businesses simply responsibility and improve bottom lines. To avoid auditing, you just have to be diligent in your accounting. You also have to be careful to prevent the risk of theft and mismanaged money.