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5 Best Payment Methods Every Small Business Should Consider

Are you a first-time small business owner? Just like other novices, accepting any payment types as long as you get paid might come across your mind. You are excited about the idea of offering ease and flexibility to all your would-be customers. Doing so will not guarantee you an all-but-rainbow-and-sunshine operation, though. It has downsides, too. As a matter of fact, that’s a dangerous model to set. Every payment method comes with its hits and misses. And by accepting some types of payments not aligned with your business model, you might be adding risk onto your already risk-filled small business. Thus, picking only the best payment methods for small businesses is crucial.

Payment Method Types

Before you allow customers to use any which payment options they want, you should know the pros and cons of different types of payment. Here’s a short checklist to help you figure out which ones will work best for your small business.

1. Cash

The key edge of cash is that you merely collect the amount owed by your customer and it goes straight to your register or bank account—it costs nothing to process. This is why cash has known as the king of payments. However, in recent years, trends show that it is slowly going out of favor with younger consumers.

Besides, when you elect to operate on a cash-only basis you should be diligent in recording your cash payments as Internal Revenue Service or IRS imposes a stringent tax auditing process. Disparities in your book and unaccounted dollars could land you with hefty fines.

So here’s a tip. Know exactly your target markets and their preferences in paying. Accepting cash at your small business can be your starting point, but you must delve into other payment forms later.    

 2. Credit Card

Customers all over the globe have started to expect businesses to accept at least some types of credit cards. Thus, the credit card is identified as the leading method of payment next to cash. Given this scenario, your small business has a great chance of progressing if you will follow this trend.

This payment form comes with a cost, though. The majority of credit card companies charge a transaction fee, flat fee, and incidental fee (under certain situations) that may impact your earnings. But if you will consider that there are more than 500 million owners of credit and debit cards in the U.S. alone, it is unwise to run your business without accepting credit cards.

Our advice is you do your research on affordable merchant services and you should be able to accept credit cards with no hassles.

3. Checks

This payment form is far from being ideal. Apart from being outdated, this poses threats to both your customers and your business. With the sensitive details printed on it, such as the account numbers and addresses, a customer might be exposed to identity theft once the check is misplaced.

Further, as an owner of a small business, it would be difficult for you to confirm whether checks are good or if the account has inadequate funds. A bounced check will not only hurt your business’ cash flow but can also incur additional fees.

If you finally decide to accept checks, we highly suggest that you comply with the procedures from the Small Business Administration or SBA to protect your business

4. Mobile Payments

Financial and tech experts believe that mobile payments are going to be the future of payment convenience and security. With this payment system, customers can use their mobile devices to pay even on e-commerce websites. Moreover, this offers a cheaper, faster, and reliable way to do business—making this payment form increasingly popular with small businesses.

Don’t be so troubled if you don’t have access to this payment method now. However, make sure to have some means of accepting mobile payments by 2021.

5. Automated Clearing House or ACH

This payment form is preferred by freelancers or businesses offering subscription services. Regulated by the National Automated Clearing House Association, you can guarantee that this is faster, more secure, and less costly than other forms of payment. Since ACH payments connect bank accounts with billing accounts, payments are made automatically.

On picking the best payment methods for small businesses

The list of payment methods for accepting payments is constantly evolving; thus your choices are continually growing. But by understanding their respective pros and cons and how each function, there’s no doubt you’ll determine the best payment methods for small businesses.  If you need help on setting your business up with suitable payment method types, send us an email or visit our site.

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Our innovative payment solutions can easily be integrated into your existing accounting, invoicing, and billing software so you can get paid faster and more secure. Interested? Start by talking to one of our business specialists today.

HIGH RISK

Are you in the high-risk vertical market? Getting tired of looking for a reliable payment solution for high-risk industry? Don’t worry! CloudBanking got you covered.

We understand that banks and low-risk providers may instantly turn down merchant accounts who they deem industries with a history of high chargebacks, irregular high ticket sales, or that are highly regulated. Thus, finding a high-risk payment processing solution that keeps high-risk businesses running efficiently might be a daunting, frustrating process. This is all the more true for the CBD oil industry. However, CloudBanking understands that your business model works for you. We believe in your business’ desire to help the community and we’re committed to providing top-rated services.

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HEALTH AND WELLNESS

Focus on what matters most to your business—your customers. And allow CloudBanking to take care of your payments. Our payment solution for health and wellness industry will be your trusted partner in improving your customer experience. With our innovative platform engineered to accept all kinds of payments and provide the security you need; we can guarantee you streamlined business operation.

 

In the ever-changing global marketplace, make your business at the forefront of innovation to give your customers the best customer experience. Trust that our payment solution for health and wellness is here to help you meet your customers’ expectations while improving your cash flow. Contact us today to experience the difference.

FIELD SERVICES

Are you one of the small or mid-sized businesses in the field service industry having trouble collecting payments? And are you tired of all the waiting and hassles? Then, it’s time for you to adopt a phone- and cloud-based payment solution for field services that will improve your cash flow and accuracy. Allow your field services staff to accept payment on-site so they can focus on the next job.

 

Level up in the game field by offering a cutting-edge payment solution for field services that will assist you in meeting your needs and improving your bottom line. Contact us to know how we can be your trusted partner in getting paid faster and secure.

RETAIL

The retail environment has evolved rapidly in the past years. To keep with the pace and increase your bottom line, you need to integrate a platform providing a full suite of card payment systems that fully satisfies the needs of you and your customers. CloudBanking’s payment solution for retail industry is here to help you stay in the game and be more competitive.

 

Powered with the latest technology, our credit card processing solutions allow retailers to accept any form of card payments such as credit cards, debit cards, and EMV-compliant cards. Our payment solution for retail industry can help you effortlessly manage your point-of-sale transactions while you boost your retail sales.

PROFESSIONAL

CloudBanking offers a customized payment solution for professional services companies, such as law firms, insurance agencies, and accounting firms. Our platform is designed to provide you a safe, convenient, and secure way to accept your service fees and lessen the administrative cost related to payment processing.

 

We understand that your business’ payment processing needs are unique. So you can’t just rely on any payment processing platform to manage your cash flow. You need a trusted partner to receive payments fast, secure, and easy. Enjoy this hassle-free process when you integrate our payment solution for the professional services industry.