Our Guide to the Different Types of Payment Options for Small Businesses
As shopping has gotten more sophisticated, the number of payment options have rapidly increased, offering customers many more ways to pay for goods and services. Far gone are the days where cash, credit card, and cheques were the only way to pay—there are now methods like contactless payments, over the phone payments, and many more!
Why Does Offering Different Payment Options Matter?
In 2021 and beyond, business is all about prioritising the customer experience. The move to digitise various aspects of the sales process also means accommodating clients as much as possible. While some people may have already converted to cashless alternatives, others prefer to go old school with cash or cheque.
Offering as many payment options as possible will assure customers that you’re looking to accommodate them, no matter how they choose to pay. It also makes the most crucial part of the sales process a breeze by not requiring the customer to review their decision to buy.
Offering More Payment Options Can Increase Your Revenue
Research shows that small businesses offering multiple payment options were able to generate more revenue—in fact, their revenue rose by nearly 30 per cent! This seemingly small detail makes charging, collecting payment, and managing any outstanding balances a breeze. Cash, check, and credit card payments are no longer enough—alternatives like online banking, chip scanning, and digital wallet services like Apple Pay will further make things easier for your customer and encourage more sales.
Even with the reasoning behind multiple payment options being clear, it’s difficult to get started. You may be feeling overwhelmed about deciding on the payment payment options for small businesses you should offer your customers and finding a complete EPoS system to support them.
We’ve put together a guide of the top payment options so you’ll have an easier time of what your business should accommodate and the best EPoS systems for the job. Here’s what you need to know:
Visa and Mastercard are two of the most popular debit card brands in the UK. However, some customers still hold American Express and Diners Club cards. When they choose to pay with any of this, the amount they spend is deducted immediately from their bank balance. They use their card through a chip, PIN, or contactless through online or telephone banking, and then the system takes the money straight from their account.
It’s important to accommodate payments from the three major network payment processors: Visa, Mastercard, and American Express. Credit cards are one of the most accepted payment methods. They function like debit cards, except that the customer uses credit to pay for the amount, which means they’ll actually pay for it at a later date when their credit card bill is due.
Credit cards, like debit cards, can be processed with a chip, PIN, or contactless with the help of a good payment system that offers various integrations.
Prepaid cards are like debit cards, except that the customer does not need to have a bank account to have one. They load up the card with cash, and when they use the card, the system directly takes the money out of it. Prepaid cards also have a chip and PIN and can be used for online payments.
Contactless Payment Payment Options for Small Businesses
Contactless payments have grown in popularity over the last few years and most especially during the pandemic. They’re fast and simple to transact with since customers must simply tap their card or phone on the EPoS system. Customers can make contactless payments with any of the cards mentioned above or through their smartphone.
Apple and Android Pay
Customers can use Apple and Android Pay for transactions by loading their credit or debit card details into their smartphone’s e-wallet. With a single tap, they can complete a purchase, making it a quick and straightforward process. It uses RFID and NFC technology to process the payment and is reasonably secure since it requires a fingerprint or facial recognition for iPhones and a password for Android phones.
Over the Phone Payment Options for Small Businesses
In this payment option, people offer their card details while on the phone with the store. Paying over the phone is also made secure with a virtual terminal, where the store provides the customer with the details, and they put them into a terminal they can access.
Cash is still one of the most popular ways of transacting and is often used for regular, lower-value purchases like train tickets, lunch, or office supplies. It’s crucial to accept cash and other forms of payment, as the notable downside is that if customers don’t have enough money with them, they’ll have to look for an ATM to withdraw.
Cheques are rapidly declining as a widespread form of payment since they take days to process. It consists of a paper voucher on which the customer writes the amount and the recipient’s bank account name. Sometimes, writing a cheque fails because the person writing it doesn’t have enough money in their account.
Online banking is another great way to make payments since they can simply transfer money to anyone as long as they have the account details. You can remotely settle standing orders or one-off payments with clients through this method as well.
Lastly, email is a convenient way for customers to pay for goods online. All it involves is creating a custom link and sending it to them by email, which takes the customer to a secure payment page to complete the transaction.
For your business to succeed in 2021 beyond, you’ll need to have an EPoS system that accommodates these payment options. Doing so will ensure that your customers can purchase from you with their preferred payment method, preventing them from being disappointed and potentially losing business.
Easitill offers some of the best EPoS systems in the UK, serving the retail, hospitality, and business industries. We provide simple, reliable, and supported EPoS systems, websites, and labelling solutions that will support your business and ensure you accommodate your customers’ top payment method.
Get in touch with us today to learn more!