As a business owner, you need to make sure that your payment methods are up-to-date. After all, the last thing you want is for one of your clients to be unhappy with how they paid for the goods or services they received from you. Luckily, there are plenty of ways to accept payments online even if your business is on a budget. Here are some of our favourites:
1. Cash
Cash is still the most popular payment method. It’s not just because it’s quick and easy for your customers, but also because it’s anonymous. You don’t have to worry about security or compliance issues since you can’t attach a name or bank account number to cash payments.
But there are some disadvantages: processing costs can be high; it can be stolen or lost; and because cash payments can be made for illegal transactions (such as prostitution), businesses accept their need to keep good records of all transactions that happen in their stores.
2. Credit Cards
Credit cards are the most popular payment method in the world. For good reason: they’re secure and accepted almost everywhere, from grocery stores to gas stations to online marketplaces.
Credit card transactions can also be processed quickly, which makes them a great option when you need to get paid fast. You can also use credit cards to pay for recurring services (such as Netflix or Spotify) and international transactions.
Your business must be set up to accept credit card payments seamlessly and luckily, it’s pretty easy. So, here is a few things you need to know on how to accept credit card payments for your business. You’ll need an Internet-connected machine that accepts credit cards (like an iPad or tablet) and a device capable of reading the magnetic strip on the back of the card (like the Square POS system) so that customers will be able to complete their purchases with ease.
3. Checks
Checks are still widely used by businesses, but they’re becoming less common as other payment methods become more popular. However, checks can be processed quickly and easily, they are useful for recurring payments, and they aren’t as secure as some other payment methods.
Used properly, checks work very well for small to medium-sized businesses that don’t need to process transactions daily. If you have clients that prefer this method of payment or if you want to use them yourself because they are quick and easy in person (and you don’t mind them taking longer than most other types of transactions), then this may be a good option for your business.
4. Bank Transfers
Bank transfers are the most traditional and direct payment method. With a bank transfer, your customer will send money directly from their bank account to yours. This type of transaction is usually free for both parties and can be done either online or in person at a branch.
Bank transfers can come with drawbacks, however: if you don’t have the correct routing number or bank account number, there may be delays or even fees associated with the transaction. In addition, because it’s not an instantaneous process, customers may not like having to wait several days for their money to arrive in their account (and vice versa).
5. Mobile Payments and Digital Wallets
The first category of payment methods is digital wallets. Digital wallets are linked to credit cards and can be used in stores and online. They provide an alternative to traditional payment methods by making it easier for you to pay without having to carry cash, checks or credit cards around with you all the time.
Apple Pay and Google Wallet are two examples of mobile payments that are growing in popularity because they allow users to make purchases using just their phones (or watches). Both these platforms let users link their credit card information so they don’t have to go through the process of entering payment details every time they want to buy something from an app or website.
Digital wallets like PayPal and Amazon Cash also fall under this category because they allow people who don’t have bank accounts access financial services by transferring money between friends via email, text message or social media site comments made on each other’s profiles respectively.
6. Cryptocurrencies
Cryptocurrencies are a type of digital currency that uses cryptography to secure transactions and control the creation of new units. Bitcoin, Ethereum and Litecoin are all examples of cryptocurrencies. Cryptocurrencies can be exchanged peer-to-peer without the need for an intermediary or any government involvement. This allows users to send money over long distances quickly and anonymously with virtually no transaction fees.
To receive payments in cryptocurrency, you must first obtain a wallet (a software program where your coins will reside). Wallets can be stored on your computer or smartphone; some wallets also offer cloud storage options (in which case you might not even need to download anything). Once you have a wallet, it’s time to get some bitcoins.
There are several ways to buy bitcoins: if you already have one bitcoin, you can pay someone else who owns one bitcoin with it as part of their transaction fee; otherwise, you could use an online service that lets anyone buy small amounts of bitcoin instantly using a credit card or bank account.
Make sure you understand the potential customer base for each method to make the best choice for your business. Don’t be afraid to try new things. Some might not work in your favour, but others may end up being highly successful.
Don’t be afraid to ask for help when it comes to choosing payment methods; there are many resources available online that can provide advice on how to choose which payment methods will work best for you and your business.
Conclusion
In the end, it is all about giving your customers a payment option that works for them. You want to make sure that your business can operate as efficiently and profitably as possible and keep up with the latest trends in payments is an important step toward reaching this goal.
Author Bio
Sally Smith, a woman who loves to read and write. At the present, she is very delighted to work with many aspiring small businesses. With the rise of the age of social media, it led her interest to centre around digital marketing and blogging.