Receiving money is definitely one of the most important aspects of a business. Consumers will expect there to be options when it comes to how you will be paid. What are some things to consider when you are determining what payment methods you will accept?
There are a variety of different payment methods to consider. Probably the most common payment method in Canada is the cheque. There are, however, a few industries that don’t accept cheque payments as often. Most retail locations and hospitality businesses will accept cash, credit cards and debit cards.
Here are a few things that you will want to ask yourself when it comes to determining the type of payments you will accept at your business:
- What payment method is most preferred by consumers? Most people will prefer to make payments with a credit card, debit card or cash. IF you offer several options, you will likely have a better chance of making sales.
- Will you actually get your money? For businesses that offer store credit options, there is always the risk that they won’t actually get the money they are owed. There are also issues that come along with cheques and cash. Cheques can sometimes bounce, and counterfeit cash can be passed.
- Will there be fees involved for certain payment methods? When you accept debit and credit cards, you may be required to pay a fee. There are sometimes processing charges associated with these fees, and it can cut into the profit margin.
- Which methods are going to be easiest for you? Most payment methods will have some type of training involved, depending on the type of equipment that is used to process the payments.
If you take the time to ask for the input of your customers, you will find out how they like to pay. This can help you to determine the methods that are right for your business.