As an entrepreneur starting a business, there are numerous decisions that must be made. Determining which payment methods to offer your customers is one of them. How you chose to take payments will ultimately factor into your business’ success. Not only do you want to provide a valuable customer experience, you also want to reduce your expenses. Choosing multiple methods requires training and monthly fees on your part. Here are the four most common forms of customer payment and their various pros and cons.
Cash
If you have a store, restaurant, or another business premise where you will frequently welcome customers, the most obvious form of payment is cash. This will also benefit you since there are no transaction fees to pay. A lot of your older customers will favor paying in cash too as it is what they are used to. In fact, most of the older generations prefer not to pay with their credit or other bank cards as they don’t always trust them. To make sure your business appeals to a wide range of customers, always accept cash payments.
Credit Card
Right now, paying by credit card has to be the leading form of payment. Lots of younger generations, especially millennials, prefer to lead a cashless life. With that in mind, they will expect to be able to shop and dine using their credit cards. However, bear in mind that you will need to pay a small fee to accept any form of credit card transaction.
Checks
These days, paying by check seems slightly old-fashioned. In fact, some millennials might look confused if you try to talk to them about checks. However, there are still some companies that accept this method of payment. If you do, it’s worth using a tool like eCheck Solutions so that you can accept digital ones as well as hard copies. This software will also speed up the validation process for you as well.
Online Transactions
As more and more companies are taking their businesses online, many entrepreneurs are offering online transactions for their customers. Thanks to platforms such as PayPal, these transactions are a lot safer than what they were a decade ago. In addition, the fees associated with them have also reduced significantly over the past few.
So, which of these payment methods do you think you will offer all of your customers? Make sure you have a clear policy on payments before you launch!
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