One of the best ways to maximise profit and sales when starting a new business is to offer different ways to pay. By ensuring there is more than one option available to your customers it gives you the utmost chance to make a sale as often as you can and therefore successfully grow your business. This guide can help you determine which are the best payment options for you and your business needs.
This may have seemed like the obvious option a decade ago but now with more and more parts of society going completely cashless. It could mean that you lose customers rather than gain them. Many businesses operate on a cash-only basis as a means to report less earning on tax earnings. However tempting this may be, don’t do it! Cash-only businesses are more likely to be subject to scrutiny and you could find yourself in big trouble with the tax authorities if you are found to have lied on your tax return.
For the businesses that aren’t trying to break the law that still only accept ‘cash only,’ there could be another aspect at play. The cost. One thing to be aware of is that there are merchant fees that come with processing credit and debit cards. These can rapidly add up and see your new business venture creep into the red. If it’s something that you’re worried about have a look into companies who offer low rate payment processing. That may be able to help you offset some of the cost.
After cash, a credit card is the most frequently used method of payment in the world. As previously mentioned, this method usually comes with a cost. Many credit card companies charge transaction fees for every transaction. Visa and Mastercard are the most well-known companies on the market and are known for being accepted in most places around the globe.
Taking hold in a gap in the market, several companies have popped up in recent years offering non-traditional solutions to card processing. Companies such as Paypal and Square offer mobile point-of-sale solutions which offer ease and flexibility to companies.
It’s worth keeping up to date with these financial trends as customers today will expect you to have at least some form of card processing and you may find your sales dropping if you don’t.
Online payments are great for small businesses for convenience and security. It’s a cheaper, safer and reliable way for your small business to send and receive funds and do business. Companies such as Venmo, Monzo and Square Cash and dominating the market in this regard, with reports showing that with the invention apps like this Western society may be completely cashless by as soon as 2021. So here are three different payment processing for your business. That will make your new business profitable and highly successful for many years to come.