With more ways than ever for your customers to pay, your small business can benefit from providing various payment options. Customers have different payment preferences and needs, so offering different methods of payment opens up your business to more customers and more sales. If the payment options you offer are not up to date with customer preferences, you could find yourself losing business.
Each payment method has advantages and disadvantages for both your customers and your business, meaning that no one method of payment can be the best. By offering various payment options and giving customers the freedom to choose the one that best suits their needs, your business maximizes sales and creates a more satisfying shopping experience.
When choosing the payment methods that your small business will use, consider these factors.
Using payment methods that your customers are more accustomed to will make them more likely to pay you quickly. For most small businesses, the most preferred method of payment is by debit or credit card, followed by cash. However, the millennial generation is increasingly finding payment via mobile devices more convenient and preferable: 56 percent of consumers have said they would use their mobile devices as a payment method if it were a more convenient option.
Similarly, if your business maintains an online shop, having multiple options for online payment like debit/credit, PayPal, or even over-the-phone payment is important for giving your customers the freedom to choose their preferred payment method.
Service Fees and Transaction Costs
Many electronic payment options will have associated fees, whether flat, transactional, or incidental. For example, credit card providers often charge service fees. Similarly, banks may charge a cost for each transaction. If many of your customers will prefer to pay using digital methods, then these service fees and transaction costs will be worth paying.
Security and Privacy
Certain payment methods are more private than others. Credit cards automatically record transactions, making them easier to keep track of. Some customers may prefer paying by credit card for large purchases, whereas other customers may prefer paying in cash for certain goods and services, such as medication or gifts, in the interests of confidentiality.
Equipment and Processing
Offering digital and virtual payment methods requires businesses to have certain equipment, such as POS systems and mobile terminals, and payment gateways to process online payments.
Have questions? American Verification Processing Solutions can help your business establish reliable and secure payment methods that give your customers freedom of choice while improving your bottom line. Contact us today, and we will be happy to help you with all your questions and concerns. Get in touch online or by calling 1-800-719-9198.