Overdraft payments occur more often with AutoPay resulting in reverse transactionsĬustomers may forget about the AutoPay they’ve set up and request refunds after the fact Less time spent following up with customers to remind them to submit payments May require customers to input credit or debit card information more than once since information is not automatically storedĪutoPay is very easy to set up for customersīeneficial for subscription services or recurring paymentsĮnsures on-time payments that aren’t reliant on customers being reminded to submit payment Requires you to rent or own a device to process the “tap” to complete the transactionĬontactless payment option for customers who want a hands-off experienceĮnabled in all smartphones and does not require a specific app for customers to accessĭoes not require a POS or payment terminal to complete transactions Quick, efficient checkout process can encourage customers to make more frequent purchases Often more secure to customers than using a physical card as the data is encrypted and cannot be seenĪll smartphones are now equipped with a mobile wallet Mobile Wallet payments allow customers to pay without using a physical card You may need to set up this type of transaction with your bank and the customer’s bank, which isn’t always easy. You’ll have to wait for the transaction to process before getting money in your account. Non-business customers might not feel comfortable transferring money directly from their bank account to your business. You may be responsible if a customer uses a fake or stolen payment information to make a purchase.Īllow you to receive large payments without paying fees.Ĭould be a good option if you sell products or services to other businesses. You may have to pay transaction fees, which is usually a small percentage of the transaction. If you sell items at markets, conferences or trade shows, you can bring your mobile payment system with you. Mobile payments may be more reliable than card-based transactions in some areas. If a customer disputes a charge (i.e., initiates a “chargeback”), the transaction may be reversed and you won’t receive a payment.Ĭan be quicker and more convenient than accepting cash or checks. You may be responsible if a customer uses a fake or stolen card to make a purchase. You will need to purchase or rent a device to accept payment (called a point-of-sale device). You may have to pay transaction fees, a small percentage of the transaction. This usually takes between one and three days. You don’t have to worry about bad checks or fake cash.Īllows foreign travelers to more easily make purchases. There’s a risk that someone will try to pay with a fake check, or that a check will “bounce” if the customer doesn't have enough money and you won’t receive the payment.Ĭan be quicker and more convenient for customers at checkout than cash or checks. You won’t have to pay any fees to accept checks.Īfter depositing a check, you’ll need to wait for the bank to process the check and put the money in your account. You won’t have to keep as much cash in your store. May lead customers to make more frequent or larger purchases.Īllows customers to safely make large purchases. Storing cash at your place of business or home, or transporting it to the bank, can be dangerous.Įnsuring your register is stocked with bills to make change can tie up money you could use for other business purposes.Ĭounting money at the end of each day is time-consuming. You won’t have to pay any fees to accept cash.Ĭustomers might not want to make large purchases with cash. Many customers will expect you to accept cash. One of the most common and easiest forms of payment. Here are some of the pros and cons of the main payment types: No matter which payment type(s) you offer, there will be advantages and disadvantages to each. Customers may also expect you to accept cash if you open a shop in an area where many people don’t have bank accounts or where card processing networks, the companies that send and verify information when someone makes a purchase with a card, frequently go offline. On the other hand, if you sell inexpensive items from a physical store, your customers may prefer to pay with cash. Similarly, if your products or services are expensive, customers might not feel comfortable carrying that much cash to your store to make a purchase - checks, cards or mobile payment could be better options. If you expect to make a large portion of your sales online, accepting electronic payments will be a must. Where you open your business and the types of items you sell could play an important role in deciding which payments systems to offer customers.
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