Nowadays, we get to shop for goods and services and pay using a variety of payment methods. For entrepreneurs, this is an excellent way to boost sales and increase customer satisfaction. By giving your customers the freedom to choose between a wide variety of payment solutions, you’re allowing them to pay at their convenience thus increasing your business’ ability to seal every deal you possibly can.
Here are some of the payment options every entrepreneur needs to explore.
Accepting cash is one of the best ways to receive payment from your customers. However, some companies take advantage of cash payments to manipulate their tax document which is a big no-no.
Cash payments are easy, inexpensive and a fast way to receive payments. However, it would take more accounting time. You’ll need a more secure way to keep a large amount of cash and not to mention the special reporting requirement the IRS requires for it.
If your customers make use of checks, they only need to know how to write a check the right way, and they can pay you a large sum of money. Many think check payments are outdated, yet many businesses still prefer such payment method. Make sure to verify the check’s quality and to only accept checks in reputable banks. The only problem is if you get a bounced check.
The great thing about checks is you can schedule payment. It is easier to carry than cash, and you get to have permanent bank records with checks. When paying with checks, make sure to fill out all necessary info. You only need to learn how to write a check, make sure all details are correct and have enough funds for the payment to go through.
Debit card payments are extremely popular payment solutions. You only need to have your card with you to pay for the products or services you want, and your checking account will be deducted with the exact amount due. Debits cards are convenient, easy to acquire and lets you stay within the budget.
The thing is, one of the drawbacks of using debit cards is you get no reward points, and it doesn’t let you improve your credit score. Some even claim the debit cards tend to be more at risk of disputed charges.
Such payment options can be convenient for its users as it allows them to make purchases with debt. However, credit cards come with charges, and you can improve your credit score and enjoy its perks. One needs to pay for interest fees, and one can only use to cover for a ceiling amount indicated by the bank.
For business owners, it is essential to be EMV compliant. This is to protect you and your customers from fraud and to limit your business from liabilities.
If you offer your goods and services online, the best payment method would be through online payments. Your customers only need to choose between debit or credit card payments, and even money transfer services you accept.
Online payments are a fast, convenient and effortless way to make transactions. However, two of the downsides of such mode of payment is security issues and the additional fees.
Thanks to man’s innovative ways, we can now enjoy a variety of payment solutions. Make sure the payment methods you’ll use for your business is safe, reliable and can cater to your client’s needs.