What is a payment?
Choosing the right payment method can significantly impact your business. By offering various different amounts of convenient and secure options, it will help your business succeed! To first start out, let’s figure out what a payment even is. A payment is the exchange of something of value (goods and services) to fulfill a financial obligation. Interestingly enough, there are many types of payment methods. Payments can be accepted in the form of debit cards, credit cards, cash, and much more!
Types of Payments
1. Credit Card
A credit card is a type of payment where you use a credit card to purchase a good or a service. When you use the credit card, the card issuer lends you the money and you agree to pay it back.
2. Debit Card
This type of payment is a transaction where money is withdrawn from the cardholder’s bank account to pay for items. How it differs from credit cards, they involve borrowing money, whereas debit cards use funds already available in one’s account.
3. Cash
Cold, hard cash! This is one of the simplest types of payment. Cash is the physical currency that offers immediate settlement. Cash payments eliminate the use of technology and is always universally accepted. With the use of mobile technology and other types of payments, fees can become attached. Which is why most businesses love cash payments. However, there are negatives because cash is the easiest thing to lose, steal, or even destroy.
4. Checks
A check payment is a written order instructing the bank to transfer money from the account to the payee’s account. This is a common type of payment for things like bills, gifts, or more. However, traditional form of payment isn’t used as often as they used to years ago. This payment method is secure, traceable, flexible, and a widely accepted method of payment. This is especially important for large amounts where electronic isn’t available.
5. Mobile Payments
Mobile payments have grown in popularity significantly over the last few years! These payments include things like Apple Pay, Samsung Pay, Google Pay, and others. In addition, this is common type of payment method used for quick purchases. Furthermore, it offers an alternative to carrying a physical wallet! It is as easy as tapping your smartphone on the POS terminal. As a fast-growing industry, businesses need to be prepared for these ever-changing methods!
6. ACH Payments
Does your business offer subscription-based billing or recurring payment options for your offerings? Do you cater to high-ticket clients or customers with large purchases? If the answer to this question is yes, then you need to start accepting this type of payment! ACH, also known as, Automated Clearing House are electronic bank to bank transfers. ACH payments can do credit transfers and also directs debits. As a result, it turns into an amazing thing to offer as a business! Because it is simple, fast, and a convenient way to receive payments from their clients. Want to cut your processing fees? Offer ACH today!
Choosing the Right Types of Payment
In a society undergoing rapid transformation, influenced by continuous new developments, it’s undoubtedly important to accept traditional and modern payment systems. As a business, each customer is different in regard to what type of payment method they like to use.
Choosing the right type of payment is crucial as it is directly correlated and impacted by customer satisfaction, security, sales, and efficiency. Offering different types of payments can build customer loyalty, while also mitigating risks.
Below are the huge benefits when choosing the right type of payment:
- Enhance Customer Experience
- Increase Sales
- Risk Management
- Efficiency
- Competitive Advantage
These benefits above should be your top priority as a business because you want the best for your clients. When choosing the different types of payments, research policies and penalties to ensure which payments you want to include. That way no more challenges can come your way! The most important thing is to listen to your customers by evaluating their demographics, actions, & preferences. What could help tremendously is even sending out a survey to better understand your clients’ needs. To emphasize, those responses can give a better understanding of what transactions they will prefer.
How GMS can help
Here at Gulf Management Systems, we offer solutions for any business! We can easily manage your billing, payments, and even financial reporting. Our system is designed to improve your business’s performance. Our software can allow your business to accept payments online, POS, invoicing platforms, mobile payments, and even direct deposit!
With almost 3 decades of payment processing expertise, payment experts are confidently available! With our software we develop solutions for you that are specifically designed and tailored for your business.
Partner with GMS today, your road to success is waiting!
