What Payment Methods Are Available For Your Business?
Gone are the days when businesses accepted cash only as a form of payment. It’s become a little impractical now to have pockets jangling full of coins and wallets stuffed full of notes. We lead really fast-paced, hectic lifestyles, and we’re always on the go. That means it’s not ideal for businesses to keep other customers waiting in long queues because the person at the front is taking their time counting out their coppers. Not that there’s anything wrong with paying by cash; it’s just a bit outdated in comparison to the new methods of payments that businesses are able to implement these days.
So what other payment methods are available for your business?
The first bank card was introduced in 1946 by John Biggins, a banker in Brooklyn. Each time a customer used their card, the bill was forwarded to Biggins’ bank; the bank reimbursed the merchant and obtained payment from the customer. However, people were only able to make purchases locally with their card and cardholders had to have an account at Biggins’ bank.
Since then, credit card companies have expanded drastically. What’s more, the majority of businesses now accept credit and debit card as a form of payment. In the past, you’d sometimes be charge to use your credit card, but that charge seems to have been waived now.
The good thing about accepting card payments is that your business can be based anywhere in the world and you can still receive payment. For example, you may have an online business – rather than asking each customer to come to your house to pay by cash before you give them their item, it makes much more sense to accept a card payment from their bank account, wait until you receive the funds and then ship the item to wherever they’re based.
However, it can become costly to operate a card machine, especially for a small business, which leads me on to the next option.
Pay As You Go Card Acceptance
This method may work better if you’re the owner of a small business or you’re just setting up your own company.
The idea is that you pay an initial set-up fee and after that, you only pay each time you make a sale, which means you won’t be charged a monthly fee, card storage fee, or account maintenance fee.
If you fancy only having to pay each time you make a sale, this could be the payment method for you. However, if your business becomes really successful and expands into an empire, you may wish to change back to a regular card acceptance method.
These days, everywhere you look, people are on their phones. Mobile phone manufacturers are constantly expanding and creating new and improved technology and software for phone, which you can use to your business’ advantage.
Instead of paying with cash, credit or debit card, your consumers can use their mobile phone to make payment without having to enter their account details.
Businesses use a card reader that attaches to a smartphone or tablet and is connected to their merchant account. All you’ll need is an Internet connection to be able to accept and process the magnetic strip on a credit or debit card.
An advantage of using mobile payment is that the money is transferred really fast, saving both merchant and customer time. As people seem to be permanently glued to their phones, your business could make the most of this new payment method.