When a person decides to open a business, one of the most important considerations is going to be the type of payment systems they accept.
There are four major payment systems within the retail payment system, and each one has benefits and drawbacks for a business.
When the business owner is considering the types of payments, it’s beneficial for them to take these benefits and drawbacks into consideration so they can determine what is right for their company.
What Payments to Customers Prefer?
Most customers are going to prefer using either cash or a debit or credit card.
These are by far the most commonly used payment methods as they’re easy to use and most people will carry cash or a bank card on them at all times.
Other payments like paper payments or electronic payments are not used as frequently in the majority of retail settings, but might be appropriate depending on the type of company and the products or services they offer.
Should More Than One Payment System Be Accepted?
A business owner is going to want to consider allowing more than one payment system to be used at their business.
This opens up the opportunity for more customers to purchase their products or services using the customer’s preferred method of payment.
While some are willing to use a payment method they might not be as familiar with, the business could lose customers if they don’t accept a variety of payment types.
Are There Drawbacks to Offering All Payment Systems?
Many business owners will feel that going ahead and offering all four of the main payment systems is going to be a good idea as they won’t have to turn away any customers that don’t have the proper payment methods.
While this can be true, there may be drawbacks that simply make it not worthwhile.
If the business only has one customer in a few months who wants to use paper payments, for example, it might not be worth it to accept that kind of option.
Depending on the fees to accept it and the maintenance needed on any equipment they might need.
The additional drawback is more complicated POS systems that accept more methods of payments can be more expensive for a new business.
Isn’t Just Accepting Cash Easier and Less Expensive?
Often, yes. However, this ties into the above question about what payment types the customers prefer.
Cash doesn’t typically include any fees to take, although there may be fees when depositing it in the bank.
It isn’t safe to carry a significant amount of cash around, so many customers may not have cash on them when they’re in the store.
On top of that, some businesses need to take their cash to the bank to deposit it.
It will have a significant amount in the store before a deposit.
This can lead to a higher risk of being robbed in the store or on the way to the bank.
It’s important for a business owner to thoroughly consider the various retail payment systems that are available to determine which one or ones will be right for their business.
By reading through the questions and answers above, the business owner should have a few things they can think about to help them head in the right direction.