There are various means of payment available for your business to receive your funds in exchange for goods and services sold to your clients. Some of these payment options include Bitcoin, Online Payments, Credit Cards, Cash, Bartering and Checks. It is essential to note that each of these payment options have their advantages and disadvantages. Your choice of a payment option is related to the type of business and your risk tolerance. This article is designed to give you insight into each of these payment options and how they can enhance your business.
Cash payment comes with simplicity. For the most part, there are no issues of fraud, bogus credit or debit cards, transaction fees, and bounced checks as you get cash reimbursements with immediate effect. However, there is a need for a documentation of cash transactions in case of an IRS audit which is time-consuming. Receiving cash payment is an excellent idea for you and the clients. You will hardly find an entrepreneur who avoids cash payments after rendering services or selling a product.
Checks payment are not exempt from risks that can cripple a business; it is important to utilise this payment option with caution. That is the reason why most entrepreneurs only accept in-state and local checks as a means of payment, while unnumbered checks, non-personalized and starter checks are to be ignored. If you can make use of stringent measures to confirm the authenticity of each check you receive, it is probably worth accepting checks, but it is a form of payment you should carefully consider before accepting.
Credit card transactions are known to have an affiliation with transaction fees but selecting a cash-only option for your business might reduce the number of prospective clients that are willing to buy from you. Payment options such as credit cards, payment gateways and virtual terminals can be complicated, but it is imperative to do a feasibility study and choose a payment plan that is easy to use and cost-effective. Remember that not every buyer who purchases items online has a PayPal account, you need to find a viable means to receive payment from those who want to buy from you and do not have a PayPal account.
ONLINE AND MOBILE PAYMENTS
It is important to include online payments if you are receiving payment via PayPal, credit cards and other mobile payment alternatives, otherwise you are likely to lose some potential clients. Though it may not apply to you if your business is all about dealing with real customers who visit your local store where you receive cash, or you work as a hair stylist who receives payment once the task is completed. You need to think of the simplest form of payment for your customers.
Even though Bitcoin as a form of payment can look complicated to a newbie, it remains an incredible way to diversify your portfolio. There is no need to bother yourself about fraudulent activities on your account as you receive your payment instantly and there is a probability for you to create relationships with clients who also share a mutual belief in the prospect of the blockchain technology. You can include a tag on your store or website that you also accept Bitcoin as a means of payment. Choose the right merchant solution that aligns with your business type. Bear in mind that Bitcoin payment is legal and accepting Bitcoin is not hard. This is the best time to include Bitcoin as part of payment options on your platform.
If you render services such as styling of hair or a photographer, you might have an idea of exchanging a service you are not skilled in delivering for your trade with one of your contemporaries. Both of you might be rivals in the business world, but it is an excellent idea to exchange trade by making use of bartering method. As a business owner with little funds and loads of inventory, you can give the idea of trading with a competitor who possesses what you need at the moment. Joining a barter network will be a fantastic choice as you are entitled to barter credits in exchange for the services you need at any point in time.