There are a wide variety of payment options for small businesses, and the best one for you will depend on your business needs and your customers’ preferences. Payment methods with low transaction fees are often the easiest to set up and can eliminate the hassle of late payments and manual admin. Listed below are some of the most popular payment options:
Direct Debit
Direct Debit is a convenient method for running a business that allows you to debit a customer’s account automatically. Once set up, the bureau submits payment data to Bacs. Once cleared, the money is transferred into your business account. This payment method has many benefits, including peace of mind and control over your budget. It also boosts loyalty and reputation by giving you regular reports and notifications. For example, you receive a daily email containing information about successful and unsuccessful Direct Debit transactions.
Another benefit of Direct Debit is that it can easily be changed from time to time. You can increase the amount a customer pays every month without having to call and get them to re-authorize their payment. You can also easily increase your prices and spread the cost of your service. Using Direct Debit for your customers makes it easier to plan for future growth. With such flexibility, your customers will be happy to stay with you.
Wire transfers
In the U.S., wire transfers are a common way to transfer funds. They’re convenient, instant, and easy to convert into a foreign currency. Also, they’re a popular choice for urgent transfers. Typically, wire transfers are processed on the same day, and international ones can be completed within a couple of days. Though the limits vary by money transfer provider, they’re typically very high. Wire transfers are often used to pay invoices, to send funds to friends and family, and for real estate transactions.
While wire transfers are generally successful, they do occasionally encounter unexpected issues. By using a wire transfer service, you can monitor the entire process and receive an alert if something goes wrong. Ultimately, wire transfers are the best payment method for running a business because of their convenience, security, and cost. Even if you have to wait a few days for a wire transfer to complete, it’s still the most efficient payment method for your business.
Online payment gateways
While you’re researching the best online payment gateway for running a business, it’s important to know what to look for before choosing one. You’ll want to make sure the services you’re considering are flexible and compatible with your business model. A good payment gateway will allow you to process credit cards on your website, support a range of languages and currencies, and provide access to extensive documentation. However, the type of business you’re running will determine how easy it is to integrate a payment gateway.
For a small business, you may be tempted to choose a cheaper payment gateway, but you’ll have to deal with issues with security and fraud detection that might end up costing you more money in the long run. PayPal is an e-commerce veteran and one of the most popular digital payment methods in the United States. PayPal supports many payment types, including credit cards, debit cards, PayPal Credit, Venmo, and Apple Pay.
Cash payments
In a time when credit cards have become the norm, the benefits of running a cash-only business outweigh the costs of credit card processing. This payment method helps businesses avoid credit card processing fees and keeps their prices low. Businesses should set up a petty cash fund to cover small business expenses. This fund should be kept separate from other income sources and should be replenished whenever necessary.
For brick-and-mortar businesses, accepting cash is an essential part of the operation. It is simple, easy to handle, and convenient for regular users. In addition, cash payments are instant and carry no transaction fees. This makes them the best choice for businesses with a low average ticket and high volume. But there are some downsides to using cash payments. Some buyers may worry about security and privacy, so it’s best to use electronic payment options whenever possible.
Contactless payments
During the recent COVID-19 outbreak, many consumers switched to using contactless payments as opposed to traditional cards. This move was a result of the fact that contactless payments are fast, convenient, and safe. A recent study from Visa found that 87% of consumers globally plan to continue using contactless payments once the outbreak has subsided. The convenience of contactless payments is what made them the top choice among consumers.
There are a number of advantages to contactless payments for small businesses. They are secure and do not attract any extra processing fees. Most issuing banks protect contactless payments against fraud. The security features of contactless payments mean that they guarantee that businesses receive their money without any disputes. While contactless payments have their fair share of problems, new technology has eliminated some of these issues. Businesses should take advantage of this new technology and embrace its benefits.
