Choosing a suitable payment method for your business is almost as important as deciding what type of business to run. Most start-up businesses prefer cash transactions because it seems like a safer option. However, increasing the number of transaction channels your customers use can increase your sales significantly.
As times continue to change and more time is spent online (instead of in the real world), more companies and corporations are focused on creating more convenient payment types for their customers. Online payments are as accessible as payment methods get. If you’re a small business owner and you’re still deciding what payment types are best for your business, the options below can help you out.
Crypto is still relatively new to the fiscal world, yet it’s already quite promising. The value of cryptocurrency is getting stronger, becoming an acceptable option in many corporations. There are a few risks associated with accepting cryptocurrency payments, but the benefits arguably outweigh the losses. First of all, the value of crypto can increase rapidly, which means that the payment value may increase exponentially against fiat currency over time. Unfortunately, it works both ways: The value may decrease, depending on what coin you accept. Another advantage of using crypto as a payment option is avoiding chargeback fees.
To accept payments in crypto, you will need to use a suitable fiat-to-crypto exchange medium. Most cryptocurrency traders use the best crypto exchange mediums: Coinbase, Litecoin, and Binance. Most of these apps are an all-in-one medium of exchange and include Bitcoin exchange, Ethereum, and other less popular cryptocurrency altcoins like Coinmama. So, if you’re willing to bear the risk of fluctuating crypto exchange rates, then it’s best to add crypto to your list of payment options.
You can’t ignore card payment options if you run a business in the United States, the UK, and European countries. Especially in the U.S., most people prefer to make credit card purchases. It’s understandable because credit card payments can create a more straightforward checkout process and lower checkout fees. Also, making a larger transaction is way more manageable with a credit card. Although most small business owners fear being charged a flat fee and credit card transaction fees, having credit card payment options will legitimize your business. It’ll also help improve your cash flow since the payments are deposited into your bank account directly and quickly.
To help consumers access your product through credit card payments, you need to choose the best credit card processor and decide if you want to accept Mastercard, Visa, and American Express payments. You can decide to accept just one or two before deciding on a competitive processing fee and discussing the transaction volume you think your business can handle. Next, you’ll have to open a merchant account with your payment processor. PayPal is one of the most common processors and is also easily accessible in many countries. You can then set up your payment terminals by purchasing hardware like a POS or other card readers.
Online transactions are also commonly used and are pretty convenient for customers. This method transfers payments electronically through payment gateways and helps with credit card payments, e-checks, and direct debit payments. You don’t have to have an online business to use online payment methods: You can use apps like AmazonPay to receive your money directly. Using an online payment method is a smart move as an entrepreneur, as it is considered a sustainable method. Since the COVID-19 pandemic began and changed many things, almost all purchases have been made online, and more people are embracing this transaction type.