Options for Collecting Payments for Your Business

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Are you thinking about starting a new business? If so, congratulations! It is exciting to build a business from the ground up. No matter what type of product or service you provide, you need to maintain your cash flow. That way, you can pay your employees, keep the lights on, and build a successful business. At the same time, how are you going to accept payments? There are several options available, and you need to consider the benefits and drawbacks of each choice.

Cold, Hard Cash

Of course, one of the first options you need to consider is cash. Even though a lot of people do not carry a lot of cash with them, you should still consider accepting cash as a form of payment for your products and services. The biggest advantage of accepting cash is that you do not need to pay anything to accept it. For example, you don’t need to worry about paying a transaction fee, and you don’t have to worry about someone taking a commission on your revenue. The disadvantage to accepting cash is that someone has to be physically in front of you to give it to you. This could be a problem if you do not have a brick-and-mortar location.

Credit Cards

Next, you should consider accepting credit card payments as well. This is incredibly helpful if you conduct remote transactions. A lot of people like paying using a credit card because they do not necessarily have to pay the entire bill immediately. Furthermore, people can collect rewards on payments they make using a credit card. The downside of using a credit card is that you may have to pay a merchant fee to accept that payment method.

PayPal, Venmo, and Other Electronic Transfers

You might want to consider accepting other third-party transfers as well. For example, you might accept Paypal, Venmo, Google Pay, or Apple Pay. The biggest benefit of using these payment options is that you expand your customer base. The more payment options you accept, the more customers you will have. Similar to credit cards, you may have to pay a commission on the transactions you make using these payment methods. You may want to take a close look at the overall fees and select the methods you accept carefully.

ACH Payments

Finally, one of the most important options you need to consider is an ACH payment. Essentially, this is a payment that is going to directly move money from the bank account of your customer into the bank account of your business. There are numerous advantages that come with this type of transfer. It is fast, easy, and should not cost you a lot of money. Furthermore, it can help you build a strong relationship with your customers while also increasing your conversion rates. If you want to position your business as an authority in your industry, you should consider accepting ACH payments.

Sources

https://paysimple.com/blog/all-the-ways-you-can-accept-online-payments-in-2021/

https://current.com/blog/what-is-an-ach-transfer/

https://www.entrepreneur.com/article/64838