There are a lot of things to consider when running a small business.
Your time and resources are very stretched. One thing that a lot of business owners tend to overlook is payment options. Surely they can’t matter so much? But they do. Payment options or the lack of them can have a huge impact on your business. Payments come in all forms, some are more reliable and some require more work. When building your business plan, it is important to take this into account. Let’s get into it.
The importance of offering options
As a small business owner, if you decide to exclude or limit your consumers’ payment options, you may be limiting your business opportunities as well. The truth is, not everyone has multiple payment options with them, and so if you don’t respond to them whether or not they like your products, they won’t be able to buy them, and they’re much less likely to. come back too. So offering your consumers a better level of flexibility is simply a good business solution.
Having more options also tends to increase the purchasing power of your consumers. For example, if you run a cash-only business, think about how much money someone has at any given time. They might want to buy more from you, but they can’t because you only accept cash and they only have $ 50 on them. So, to maximize the buying potential of your consumers, you need to offer them options.
Providing them with options may also make your job easier because some payment methods require more effort on your part. For example, cash and checks should be deposited in a bank and the creation of receipts and documents to keep your accounts balanced should also be done. It can be time consuming and take you away from other areas of the business that might need your attention as well. While if you do accept credit and debit or wire transfer payments, they tend to be much easier to process, and most of the time this is done through online automation, which makes it easier for you as well. .
Finally, having more payment options can be considered more hygienic. Hygiene has become a priority for people in recent years. Using payment methods that minimize the risk of cross-contamination can help protect your health and the health of consumers. Most species tend to be rife with germs and bacteria. When you are constantly dealing with exchanging money, you can increase your chances of getting sick. This can lead to lost income if you get sick enough to shut down the business.
The most popular payment options
There are a number of options to choose from when it comes to offering different payment options to your consumers. The options you offer will depend on your target audience. Most businesses have the option of accepting cash payments. Cash is more popular with older people than younger people who prefer other methods. Cash doesn’t cost anything to process, but it does mean regular trips to the bank to deposit your winnings. You should also be diligent in documenting your cash transactions in the event of an audit.
Checks are another option, but they are far from an ideal option. They contain sensitive information, including account numbers, names and addresses. A lost check can easily lead to identity theft, which means that accepting checks is a big responsibility for you as a business. Checks can also be forged and take time to process. In all fairness, you should avoid taking checks as a form of payment if you can avoid it.
Credit and debit payments are essential if you want to attract young consumers. However, accepting card payment can be incredibly expensive for businesses. This is because they often have to pay for transactions to be processed. There are solutions for this, however, depending on the company you use to process your payments. For example, NadaPayments has incredibly low credit card processing fees that are actually returned to the consumer; you can find out more about them using this resource. If your consumers are not happy with this supplement, they can avoid it by using their debit card or other payment option.
Some companies also accept mobile payments. While the adoption of mobile payments has not been as rapid as the tech empires that created it initially believed, it is taking off. This option is especially popular with younger generations who want everything they need on their phone. Often, many businesses can accept mobile payments using their credit card terminal. So if you want to accept mobile payments, check with your credit card terminal provider; it often doesn’t represent much extra effort or money on your part.
Finally, you can also decide to accept money orders. Money Orders are paper documents used to make payments, much like checks. They differ from checks in that they are much more secure, being issued only after the customer has authorized the transaction represented in the order. They are rare, not often seen by many companies, which means you need to know how to authenticate them before accepting them. Because they are rare, they are often not considered, but depending on the location of your business, it may be worth considering as money orders are often used by people with low incomes. This means that if your business is located in a low income area, accepting money orders can actually open up your market.
Choose from diversify your payment options is an important decision for your business. Take the time to determine which will be the best choice for your business. You can also ask your customers for feedback on other payment options they would prefer. There is no point in deciding to accept alternative payment methods if those options do not benefit your consumers. If it works for your consumers, it will work for your business. Having more options makes good business sense, but neither is having the right options for your consumers.