There are different methods to take payment as a business (small or well-established) from customers and clients. Gone the times where you only transact with cash or cheques. As the world is more relying on digital methods, digital transaction techniques have changed. There are methods where you can charge low transaction fees from your customers. Customers like it when they have to pay low transaction value for a purchased service or item.
When a business offers several methods of payment, it gives the customers or clients a comfortable feeling. Since the COVID-19 pandemic started, many companies have shifted to more forms of cashless transactions to avoid transmitting the virus through cash to cash transactions.
Let us look at several elements that will help you in this process:
Card Machine Payments
This one is widespread and can be seen in most of the business outlets. This enables customers to pay through cashless card mode where a machine is used to swipe debit or credit cards. It is followed by entering the charges that the customer needs to pay, and then the customer enters its PIN to approve the transaction.
These machines help customers to pay their charges with lower fees, and business makes more profit. These machines have a low upfront cost which enables companies to invest a lower amount.
Several other devices enable contactless payment through card machine. These devices cost around 100 pounds and help small enterprises to set up a payment channel.
Digital Payment is the new normal
With the pandemic, many businesses have shifted to digital payment mode. Many companies do not enjoy e-commerce sites privilege and reach customers through social media channels such as Facebook and Instagram.
Businesses can send payment links to customers which when clicked by a customer redirects them to payment mode such as PayPal to complete the payment transaction. This method has bridged a gap between customers and businesses via social media channels.
Many young people enjoy shopping in such methods. This method helps many small start-ups in doing business.
Trading through the digital platform
This is for e-commerce businesses that trade with the help of the internet. For this, a company needs an internet merchant number with a secure payment page. To set up both, Payment Service Provider takes both set-up fees and per-transaction fees.
To increase additional security, businesses can set up MasterCard SecureCode or Verified by Visa to guarantee that the transactions are not duplicitous. You should mention it on your website that you provide a secure payment process and give a sense of security to your customer.
Person to Person Transactions
Person to Person transactions can be done via different methods other than the usual cash payment method. You can do cash present transactions which include chip and pin, chip, and signature or magnetic strip.
It is a secure and quick method which is a cash alternative. Several charges vary according to debit and credit card. Debit cards take prices per transaction, and the credit card is priced on a percentage of the value of the card.
In case you want to give your customers an itemized bill receipt, then you may have to rent a terminal that is serviced and updated by the provider.
Take care of Invoice
To get paid on time after completing your work, it is essential to minimize any delay in this process. It is also necessary for you to talk to your client about how they will pay you. You must credit check your new clients before you start a business with them.
Don’t forget to send an invoice as soon as you finish the project and avoid delaying. Sometimes clients forget to pay because of inefficient invoices. Include reference numbers, PO numbers, and bank details in the invoice. Include a deadline for payment.
As per the Government’s Late Payment Directive, a business can charge interest for late payment. Don’t feel shy in sending timely reminders for payment through emails, calls, or text messages.
You can survive the ongoing pandemic economic crisis through several methods. As customers are afraid to use the cash transaction method, you can now use several alternatives. If at any step, you feel a need to borrow funds for your business, then you can contact lenders. Many lenders offer short term and long term non-guarantor loans for businesses at a flexible timeline.
Businesses can take easy payments through Cashless transactions through card payment, contactless card payment, and digital payment methods. You can also use a secured payment method for your customers to help them ensure a sense them security and trust. Businesses can also send invoices and take payments in person through the retail outlet.