Customers want options when it comes to making payments—and cash, checks and debit cards are by far some of the longest-standing and most popular payment methods to date. Providing these particular payment options does come with a price to the business owner—which includes account, transaction, equipment rental and merchant fees—and unfortunately it just has to be accepted as a standard cost of running a business. Not providing these payment choices could drive customers away, which would be detrimental to your business. What you can do to reduce that expense, however, is to shop around for the best-quality service that comes at the fairest price. Different financial institutions, merchant accounts and payment processing services have different fees, so it can benefit you to find the one that suits your budget. Some small business associations, such as the Chamber of Commerce, may even offer member discounts. Reach out to them for more information.
Although cash is the easiest and fastest way to get paid, it’s also the most risky payment method because it can be easily misplaced or fall into the wrong hands. And because cash transactions leave you with no paper trail, you would have a hard time collecting from your insurance in the unfortunate event that your money is lost or stolen. To avoid finding yourself in such a situation, get in the habit of depositing your cash at your financial institution every afternoon. If you can’t make it to your financial institution every day, buy a high-quality safe where you can temporarily store your cash.
Especially if you are selling a service, you are likely to receive check payments from your customers. When you do, it is very important that you take several safety measures to avoid accidentally taking a fake check. Remember to always ask the customer for photo identification and record their driver’s license number on the check. Double-check the date and dollar amount to catch any possible errors. If the check is for $300 or more, it would be best if the customer paid with a certified check or draft instead. Mistakes can be very costly to you and can take a lot of your time and effort to rectify.
In order to accept debit card payments, you must first buy or rent a debit card terminal, which you can find at most financial institutions. The equipment will cost about $40 a month when it is connected to a land line, or about $100 a month connected to a cellular line—all in addition to the cost of that landline or cellular line. You are also required to pay the financial institution a transaction fee, typically between 10 and 50 cents, every time a customer uses their debit card.