Payment Methods for Small Businesses

As a small business owner, you know that payment methods are different for each customer and each country. Some customers prefer to pay with credit cards, while others may want to pay with cash or checks. You can also accept payments via PayPal or Apple Pay, but your options are not limited to these popular choices. You don’t have to stick with one type of payment method forever. You can change it up as needed based on what works best for your business.

Credit Card Processing

Credit card processing is a service that allows you to accept credit cards. You’ll need to register with a payment processor and have a merchant account connected to your website or store. A merchant account allows you to accept payments from customers, process them through the bank, and deposit the funds into your business’s bank account. This is the most preferred option as it is the quickest and can be used for a wide variety of businesses. Best of all, this lets you turn around and invest easily, including investing in stocks, cryptocurrency, or automated trading bots. 

Mobile Payments

Mobile payments can be a convenient way to accept payments for your business. Mobile payments are convenient and secure, and they’re easy to use. They’re also the fastest-growing payment method in the world, therefore it’ll be wise to accept them if you want to stay competitive. Mobile payment options include Apple Pay, Samsung Pay, Google Pay and PayPal.

Debit Cards

Debit cards work similarly to credit cards in that they can be used to make online purchases. Unlike a credit card, the funds come directly out of your checking account and not as an advance on future payments as a loan would. This means that if you use a debit card and don’t have enough money in your account at the time of purchase, the transaction will be declined. Debit cards are also accepted in many brick-and-mortar stores as well as ATMs. 

Debit cards are also accepted everywhere that accepts credit cards and offer the same benefits: Visa and Mastercard both provide fraud protection when you use their branded debit cards, meaning that if someone steals your number but doesn’t have access to your physical card or cash, they won’t be able to make any purchases.

Check

Checks are a traditional way of payment, but they’re not as popular as they used to be. According to an American Bankers Association report, checks accounted for just 6% of all payments in 2017, down from 18% in 2000. Checks are expensive for small businesses because they cost more than other payment methods and involve more work on the part of the business owner. 

Checking accounts also charge fees based on how much money is kept in checking accounts at any given time. Sometimes called maintenance fees or activity fees. These charges may range anywhere from $10 per month up to triple digits depending on which provider offers them. However, these costs should be factored into any business plan before opening one’s doors to business.

Gift Cards

Gift cards are a convenient way to encourage repeat business and they’re also an excellent marketing tool. Gift cards can be used for loyalty programs, customer incentives and much more. If you’re looking for ways to get people to try your product or service who wouldn’t otherwise have done so, gift cards are a viable option.

Gift cards are also a viable option for small businesses that don’t have time or resources for advertising campaigns. The key to using gift cards is to make sure that your business can afford to give away a certain percentage of your profits. If you’re just starting out, this may not be possible. However, if you have the money and are willing to give away gifts in order to boost sales and increase brand awareness, then gift cards are definitely worth considering as a marketing tool.

Conclusion

Integrating different payment types into your business is a smart idea for any small business. There are several ways to do this, but it is advisable to choose one method and stick with it. as much as possible. Changing payment methods too often can confuse customers who don’t understand why they’re getting payments differently now than before.