Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
CyberSchmooz
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide



Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

5 Ways Small Businesses Can Accept Payments

 

As a small business, it’s vital to have an efficient way to receive payments for the goods or services you’re selling online or in person. Depending on the methods you can access, you can decide to accept one or multiple payment options. The five common ways to accept payments are cash, wire transfer, credit/debit cards, and online payment methods.

Accept Cash Payments

Cash payment has been a primary mode of payment until recently, when digital payment options steadily increased in popularity. Most cash payments are managed from a point-of-sale (POS) system. Consumers make their cash payments through bills and coins.  

The only current limitation of cash payments is when customers shop online. Only about 36% of customers today consistently have cash on them, which is very low, so it’s important to have an alternative way to accept payments.

Wire Transfer

A wire transfer is an electronic money transfer between two bank accounts. It’s a payment made by a financial institution, like a bank or money transmitter, from a sender to a receiver’s bank account.  A wire transfer can be domestic (within the country) or international, which is ideal when large sums of money are involved and money should be received immediately. The money reception is immediate because there’s no third party involved. The wire transfer money goes through a system like SWIFT or CHIPS (Clearing House Interbank Payments System).

Credit Cards and Debit Cards

Almost everyone in the developed world today owns a credit or debit card, while this is increasingly phenomenal in the developing world. Businesses have also adopted them as a key mode of accepting payments. 75% of today’s customers prefer using debit or credit cards when shopping or making payments online or in person.

When accepting credit/debit cards, consider the card’s payment processing fees and transaction fees from the card company, and choose the cheapest option. For example, Visa charges less than American Express. You also need to be alert to potential credit card fraud, which has been rampant recently, especially among small businesses. Accepting card payments requires that you have card reader tools like POS software, virtual terminal, and card reader.

Automated Clearing House (ACH) Processing

Many small businesses accept ACH transfers for payment. ACH is like wire transfers, sending money electronically, but the money is processed automatically through a clearinghouse network or a payment processor. ACH payments are ideal for business-to-business or business-to-consumer scenarios that require shorter payment periods of one to three days, such as:

  • Paychecks
  • Bill payments
  • Tax refunds

These are ideal for small businesses because they are relatively quick, easy to set up, and more secure than other payment options.

Online Payment Options

In today’s digital economy, small businesses have several options for online payment methods to receive payments. This is very important for eCommerce stores. Most online payment services also accept credit and debit card payments at a fee. The five most popular online payment tools are:

  • PayPal
  • Stripe
  • Square
  • ApplePay
  • Google Pay

Allow your business to accept these payment options and reap the benefits of diversified payments.

Endnote

There are many other payment options like subscription, recurring billing, contactless payment, and more that you can explore. The more payment options your business has, the more customers you receive. As a small business, you must adapt to your customers’ needs or risk losses.

Google      

Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2022, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.