When you run a business, you will naturally need to accept payments from your customers for the products and services you sell to them. As you know, there’s a variety of payment options you could offer to make their experience as quick and convenient as possible.
The problem is, some business leaders assume certain customer payment myths are the truth. As a result, they end up inconveniencing their customers and, worse still, drive them away to rival businesses that offer more flexible payment options!
Are you worried that the way you take payments from your customers could be making their lives hard or even force them to buy elsewhere? If so, take a look at these four customer payment myths that you need to know:
Customers can always pay in cash
One of the most ridiculous things that some business owners believe is that customers can always pay for goods and services in cash. Sure, that might have been the case when debit and credit card payments didn’t exist or weren’t as prevalent as they are today.
But, most people prefer to pay with cards or even digital payment methods such as PayPal. With that in mind, you should always offer cashless payment options to your customers, regardless of your business type.
Only “big” businesses can take card payments
There was once a time where only larger businesses could afford to accept card payments from customers. The problem wasn’t so much with payment processing costs but more to do with equipment prices.
The good news is card terminals are cheap to buy and can get set up and used by even sole traders in minutes. Gone are the days of bulky card terminals that needed a telephone line connection or even a mobile SIM card.
These days, you can simply pair a card reader with your phone and accept debit and credit card payments wherever you are. Even if you’re in a location without electricity or a telephone line!
Online payments are risky
There is a risk with accepting any form of payment from customers – even cash can be a “risky” payment method! However, the risk of taking online payments from your customers is relatively low.
When you use a reputable online payment gateway, you can be sure the risk of things like chargebacks is low. For example, many gateways allow options such as only shipping to a cardholder’s registered address.
Giving your customers credit accounts is bad
When you’ve got customers that buy often from you, it can make sense to offer them credit facilities. The thing is, some business owners assume that’s a bad idea. While there is some truth in that, you can lower the risk of bad debts by doing the following:
- Credit-check your customers to ensure they have a good credit score;
- Use invoice financing to completely eliminate all risk of bad payers.