Payment collection is a critical part of running any small business. The payment process for the products and services you provide affects how you manage your business and your customer’s experience. Today, consumers expect almost every industry to accept credit cards and mobile payments. However, payment processing for small businesses and startups is not always as simple as it may seem.
Knowing where to start or find payment processing can be overwhelming, complex, and costly for business owners. What’s worse is that having inadequate payment processing could harm overall business. Fortunately, with the right tools, you can select the perfect payment processing solution to meet your small business’s needs and easily accept customer payments.
Understand Your Payment Processing Options
Understanding your options will help you successfully streamline your payment processing. Other than cash, there are three main ways small businesses accept payments: basic terminal payments, mobile payments, and online payments.
*Basic– Basic is the most common method of collecting credit and debit card payments, typically connected to a point-of-sale (POS) system.
Basic or traditional terminals are always an excellent option for well-established, brick-and-mortar businesses that primarily accept credit and debit card transactions.
*Mobile– Less expensive than basic terminal payment processing systems, mobile payment processing is a reliable solution. Mobile payment processing allows a business to accept payments in person, online, or anywhere. A mobile POS system, internet or wifi connection, smartphone or tablet, and card reader are necessary for mobile payment processing.
*Online– Online payment processing systems are primarily for businesses that sell products online. E-commerce requires using a virtual terminal where customers safely and conveniently pay for purchases. E-commerce allows companies to reach customers beyond their local area by accepting purchases through their website.
Determine A Pricing Structure That Works For Your Budget
Understanding the pricing structure of the various payment processing systems is crucial to your bottom line. Some companies charge percentages of purchase prices while others charge a flat rate for using their service. Other common pricing structures may be based on tiered rates and subscription-based. The volume of business you experience may increase as you grow, so consider a system that has flexibility.
Payment Facilitation Platforms Offer Businesses Options
Regardless of how your business processes payments, a payment facilitation platform can provide a better experience for you and your customer. These highly customized platforms give small businesses the ability to create a payment processing system that is efficient and effective.