Giving your customers more ways to pay could encourage sales. However, enabling certain payment options could come with certain costs or inconveniences that you need to be wary of on the front end. Below are just a few alternative payment options to consider cash and debit card – and information on whether you should accept them or not.
Credit card
Credit cards allow customers the option of borrowing money to pay for items. Such payments can be accepted online or via a credit card reader. During such transactions, the seller is charged a small fee.
If you sell high ticket items, accepting credit cards could be important. Customers that may not otherwise be able to afford your product will have the option to buy.
If you deal largely with small sales, accepting credit cards may not always be appropriate. The transaction fee could negatively affect your profits. Some companies get around this by setting a minimum credit card spending limit.
Mobile payment
If you run a physical store, you may want to consider enabling mobile payments. This allows people to make payments using their smartphone – if someone forgets their wallet, they may still be able to pay on their phone.
Accepting mobile payments will require you to buy a specialist reader. Consider whether you get enough customers that are likely to pay on their phone. Doing a quick analysis of how many customers would chose this option in a given month, we help you decide if this payment option is worth the cost.
Cryptocurrencies
Some companies are now accepting payments via crypto. A cryptocurrency is a digital currency that can be traded just like normal currency.
Cryptocurrencies are useful if you accept a lot of international payments as it prevents the need for currency exchange fees. You should however be wary of the fluctuating rates of many cryptocurrencies – they can fall or rise in value much faster than standard currencies.
You can click to learn more about trading cryptocurrency here. Due to the appreciation of cryptocurrency values many business owners see accepting cryptocurrency as a potential investment. Online payment platforms and even mobile payment readers can be set up to accept crypto.
Cheques
Cheques are slightly old-fashioned but still accepted by some companies. Some older customers may still like to use cheques instead of paying by card – this could be worth considering if you have a larger senior demographic. Nowadays, many banks also allow you to cash cheques online, so you don’t have to travel to a bank.
The biggest downside of cheques is that they could bounce if the customer doesn’t have enough money in their account – meaning that you may not get your money. If this happens, you then have to chase up the payment.
Vouchers/loyalty points/gift cards
There are other personalized forms of payment that you can look into setting up. This includes vouchers, loyalty points and gift cards. All of these could help to expand your customer base by offering the incentive of a discount.
Setting up these payment options may require some help. You should make sure that any discounts you offer through vouchers or loyalty cards do not negatively affect profits. Gift cards are generally worth investing as a customer still has to pay full value for them (if the gift card is never spent, it’s also extra profit for you).
