4 Payment Options Your Small Business Should Consider
When customers make a buying decision, they’re not just considering the quality and price of your products or services, they’re also evaluating the ease and convenience of the whole buying process. As a business owner, you should offer different payment options to provide the best customer experience and to ensure you receive timely payments
Here are four ways your small business can accept payments in 2020:
1. Credit and debit cards
Data suggests that 75% of customers prefer to pay with a credit or debit card both online and in person. To be able to accept card payments in your brick-and-mortar store, you’ll need to have a card reader and a merchant account.
Meanwhile, if you want to accept online payments via credit or debit card, you’ll need to have an ecommerce website and a payment gateway, which encrypts sensitive customer information. For recurring billing, you can have your customers sign up for a subscription billing plan which will allow you to charge monthly payments on their credit or debit card automatically. This will not only offer customers convenience, but also ensure that you get paid on time.
2. ACH (automated clearing house)/Pre-Authorized Debits/Direct Debits
Pre-authorized bank account debit (ACH in the US, PAD in Canada, BACS in UK and Direct Debit in most of the world) processing is ideal for recurring payments in a subscription-based model as it allows customers to provide you with their bank account and routing numbers for electronic payments.
Compared to credit and debit cards, the fees are lower. ACH also offers convenience as it will just require one-time input of information and the money will be withdrawn as arranged. Xero and QBO users can automate this using uCollect.biz.
3. PayPal, Stripe, and Square
PayPal, Stripe, and Square do not require you to have a merchant account. PayPal and Stripe are commonly used online and allow for seamless transactions. Meanwhile, Square is the leading choice for brick-and-mortar stores as it lets you turn your smartphone or tablet into a point-of-sale device by integrating a magstripe, Bluetooth card reader, or chip. PayPal can also allow you to accept payments in person, but you will have to buy a card reader and download the app.
4. Contactless payment options
Contactless payment options let customers pay wirelessly and without having to input a PIN– they will just have to wave their device or card over the point-of-sale device.
Visa and Mastercard are offering contactless cards to customers, and there are also mobile wallets compatible with iOS and Android which encourage customers to use this payment option. As a business owner, you’ll only have to upgrade your equipment with a near-field communication reader or update your software, depending on your current system.
At this day and age where technology is constantly evolving and changing the way we do business, it is important to ensure that you are adapting to stay competitive.
Get in touch
If you need some guidance on the right payment options for your business, feel free to drop us a message so we can schedule a one-on-one consultation.