Retail Payment Systems: The Various Kinds

Retail Payment Systems: The Various Kinds

A business owner needs to be able to choose the type of retail payment systems they want to use for their business.

While there are two main types of retail payment systems, large and retail, the business owner will likely choose the retail system to process payments from products or services.

Within the retail payment system, there are four main types of payments that can be accepted, each of which the business owner should be aware of.

Cash Payments

Almost every business accepts cash payments and has for hundreds of years. Cash, however, can be dangerous for a person to carry, so it’s not recommended as the sole payment system for a business.

While most people will have some cash on hand, many people are starting to use cards more and more and don’t have a significant amount of cash, if any, when they’re shopping.

Still, it is possible for a business to use only this type of payment system.

shutterstock_250169596 (1)Card Payments

Card payments are the most frequent type of payments at this point. Most people have a debit or credit card they use when they’re shopping.

Even though there are risks of theft with this payment type, it’s considered much safer than cash and easier for a person to keep on them at all times.

Most businesses will accept this type of payment system so they can offer their services or products to more customers.

Electronic Retail Payment Systems

As technology grows, more companies are starting to accept electronic payments. This is typically used for companies that send and receive payments frequently, and may be used for a company payroll system to ensure employees are paid correctly and promptly.

It makes it easier for employees to get their pay, so it’s something that many employees appreciate.

This payment system can include electronic funds transfers, real time gross settlements, mobile banking, and internet banking.

Mobile and internet banking are perfect for companies that have routine services where they bill the customers once a month as this allows them to do it without having to process a credit or debit card manually each month.

cash Retail Payment SystemsPaper Payments

Paper payments are not quite as common as they were in the past. This payment system includes checks, money transfers, and money orders.

These are still accepted by some businesses, however, as they make it more convenient for customers who do not like to use their debit card or prefer to write checks for routine services instead of having the money taken from their account directly.

This is definitely something for a business owner to consider, but it’s not going to be used by nearly as many businesses as it was in the past.

Each of these types of payments is common for a business to accept, so it’s important for a business owner to understand each of the payment systems and be able to determine which ones they want to accept.

This can help them determine what payments are easier for them to accept or what type of POS they want to get for their business.

Take a look at the various payment systems today to find out which ones you want to use in your business.