Your business can benefit from offering a diverse range of payment options to customers. There are new methods of payment cropping up every day, and customers want diversity and ease of use. People have adopted various methods of payment in their everyday lives, to the point that many people have gone cashless.
To keep up with current market trends, your business needs to be adaptive and dynamic in its approach. Some payment solutions will be more appropriate for the scope and structure of your business than other solutions. You need to do some research to find out which is right for you. Here, we talk about some payment solutions for you to weigh their pros and cons.
Cash and checks—the old-fashioned ways
Businesses can opt to be cash-only businesses for a variety of reasons, though this is becoming less and less common today due to the availability of other more convenient options. Some businesses choose to remain cash-only ones due to culture. But if you are starting out as a small business, there is little reason to make it a cash-only business. It is true that you might avoid the small fee associated with debit or credit card payments, but usually, this is not worthwhile.
Many people, with their debit and credit cards in their wallets, do not carry cash anymore. Making your business exclusively take cash cuts out all of these potential customers. On a similar vein, accepting checks is also another method of accepting payment that is going out of fashion, and for a good reason, too. The few types of businesses that still accept checks are mainly businesses where large payments are made, such as hotels, catering companies, and car dealerships. Checks carry with them the risk of getting bounced, which can incur charges for your business. If a customer defrauds your business, it will be hard to get the money back without legal action, which is expensive for your business.
Credit cards and online payment services
Credit cards have become even more popular than cash in some places. This may incur some costs for your business as companies with credit card processing for lenders can charge a fee for each transaction or at the end of the month. There are many alternatives for credit card transactions that businesses can implement, including various apps. As a small business, you should certainly have credit card payment options as most people use them now. They have also become more secure over the years, with chipped cards becoming more and more common.
At the same time, online payment services have also become ubiquitous. Digital wallets are secure and quick, and they forego traditional charges. Some of them even use blockchain technology, and they are much safer. These are more popular with a younger clientele.