How Should my Small Business Take Payments?
When you run a small business, one of the big decisions you'll need to make is how you'll accept payments from customers. You want to select payment methods that make it easy for your customers to pay you on-the-go, and ones that also make it easy for you to transfer the funds into your business banking account. Security, of course, should also be a concern. So what payment options fit the bill for small business owners?
Mobile Smartphone Payment Apps
Mobile payment apps are an innovative new payment solution that allow your customers to pay you without scanning a card, writing a check, or making a bank transfer. The most popular apps are Apple Pay and Android Pay, and they work very similarly. As a business owner, you have a card reader that is engineered to connect to WiFi and accept mobile payments. Your customers pay simply by holding their phone within a few inches of the contactless reader.
If you do not have a contactless reader or wish to buy one, you can use your smartphone to accept payments via Apple Pay or Android Pay. This approach works really well for businesses that need to accept payments off-site. For example, if you offer travel dog grooming services, operate a farm stand at a farmer's market, or do customers' hair in their homes, payment apps let you accept payments anywhere you have cellphone service or a WiFi connection.
Portable Card Scanners
Of course, not every customer will have a smartphone payment app downloaded on their phones. Some will still want the option of paying with a credit or debit card. You could invest in a traditional card reading machine, but a more affordable solution is to buy a card reader that attaches to your smartphone and allows you to accept payments remotely. These card readers usually configure with an app. The money can be transferred automatically to your business banking account. You can use your portable card scanner both inside your place of business and when you're out and about.
Checks
Accepting payment by check may sound outdated, but you will be limiting your customer base if you do not accept traditional checks. This is especially the case in industries in which some of your customers may be older or less tech-savvy. For instance, if you operate a mobile pet grooming service, many of your customers may be older adults who are less able to take their dog into a grooming clinic -- and who are also still used to paying for services via check.
Thankfully, accepting checks is not the hassle that it once was. You do not need to collect your checks and try to get to the bank during open hours to deposit them. Most reputable banks now offer mobile deposit services. So as soon as you receive a check, you can sign it and then take a photo of it in your bank's mobile app. Submit the check, and your bank will review it and deposit the money in your small business account within a day or two. You'll just need to hold onto the paper check for a few weeks until you're confident it has cleared, and then you can shred it.
Small business owners who offer a variety of payment options often have an easier time keeping and finding customers. If you accept checks, mobile payments, and credit or debit card payments, you will be catering to both tech-savvy and less tech-savvy customers, all while making the payment process easier on yourself.
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