While it can be tempting for you to limit your payment requirements to one or two methods to keep things simpler, with advancing ways that money can be sent and collected, there’s no reason why you can’t maximize your business’s profits and take advantage of these payment collection systems. You may find that by accepting a greater variety of payment methods, you will secure more clients, and therefore make more money.
Here are some reasons to accept each of these very common payment methods:
Cash puts money in your pocket immediately, but is least desirable
Cash may be the least desirable method of collecting payment. However, that doesn’t mean that there aren’t some benefits to collecting cash for smaller payments. The best part about cash payments is that there is no guessing game or confusion about when you’ll have access to the funds because your client either has it or they don’t. Collecting your payment in cash allows you to have your hands on your money immediately. Another advantage to collecting cash payments is that are no extra hidden fees that may come with transferring and collecting money via other methods.
Checks widen your client base
The benefit of offering checks as an accepted payment method is that it will broaden your accessibility to a larger clientele. Checks are often used by larger corporations to make payments to individuals and companies that provide them with products and services. Given that a project for a large corporation will likely be one of your more expensive projects, you don’t want to miss out on those earnings just because your payment requests didn’t match up. Checks are also still widely used among older generations, specifically those age 40 and up. Older clients are likely to be more financially stable, and therefore may be some of your highest paying clients as well. Accepting checks as a form of payment will give you a one-up on your competition that doesn’t accept checks. Thanks to technology, checks can be deposited electronically now, which may make your life easier if checks aren’t your preferred payment method.
Credit/debit card payments are the most convenient method for clients to make payments
Credit and debit card transactions are the most commonly used method of payment for almost any product or service in the country. Accepting card payments will be beneficial to you because it is what will probably be most convenient for your clients. Not accepting card payments could drastically decrease the size of your clientele. Refusal to accept card payments may also cause your clients to question the credibility of your business, because card payments are so common that it can seem suspicious if you or your company doesn’t accept it. You will be allowed to see if the payment has gone through almost immediately, and don’t have to worry about the funds potentially bouncing like a check would.
Automated Clearing House (ACH)/Wire payments go directly into your account
Two other common ways of making payments is via wire transfer or automated clearing house (ACH), both of which are very similar but have slight differences. A wire transfer is the ability for your client to electronically send money from their bank account to yours, given that they have your banking information. ACH payments allow you and your client to make an agreement for you to pull the funds out of their account on the day that it is due without any further action of the client’s part. These methods are beneficial to you because it makes the payment process as simple as possible for your client, especially those that are very busy and may tend to forget to make payments. They could make a payment while laying in bed or better yet, they don’t even have to think about making the payment and you can still get your money.
One of the most important things to remember when accepting payments is that you want to make it convenient for your clients. This will help you in the long run because it minimizes any excuse to not pay on time and ensures that you receive the payment that you are owed. You will also find that payment convenience and versatility will boost the reputation of you and your business.