When you start owning a small business, you might be tempted to say that you will accept any type of payment. However, this can be a dangerous practice to set. While payments come in various forms, some methods are more trustworthy than others.
Infinity Payment Systems, an expert source of payment processing solutions in Wilmington, North Carolina, lists down the different types of payment customer payment options – and which ones your business should accept.
Did you know? Statistics show that more and more Americans say they do not carry cash. In an average week, approximately 3 in 10 adults said that they make zero purchases using cash. As such, you might consider making cashless transactions.
However, do not count those paper bills out just yet. Cash still continues to be the most frequently used payment method, representing 30% of all consumer transactions, more than credit, debit, checks, or electronic. Moreover, with cash payments, you do not have to worry about transaction fees, bogus debit or credit cards, bounced checks, and you receive payment immediately.
- Credit and Debit Cards
While credit and debit card transactions come with a lot of fees, running a cash-only business can turn away a significant number of customers who are unlikely to be carrying cash. Statistics reveal that Americans between the ages of 18-29 years (65%), 30-49 years (82%), and 50-64 years old (78%) currently use credit cards. That said, it would be unwise to operate a business that does not accept payments using credit and debit cards.
Virtual terminals, credit card processors, and payment gateways – these terms may sound intimidating for first-time business owners, but doing careful research can help you find what you need. Also, consider working with our team. Rest assured, we are experts when it comes to your transaction processing in North Carolina and we can help you find a system that is both user- and budget-friendly.
Accepting checks can come with significant risks for both businesses and customers alike. They also present risks (i.e. sensitive information, false checks, etc.) beyond those associated with other payment methods, so proceed with caution. Most businesses only accept in-state or local checks. Non-personalized checks, unnumbered checks, and starter checks should not even be considered.
If you can trust your employees to carefully examine every check you receive, you can consider accepting checks from your customers. However, it is something that you must carefully consider before making any final decisions.
The Bottom Line
Each payment method has unique advantages and disadvantages. No one type of payment method is best – it depends on the needs of your business. When choosing payment methods, think about how their advantages and disadvantages affect your business operations and customers.