How to choose the best payment method for small businesses?

Which payment method is ideal for small businesses? Some believe that cash is king, while others believe that credit cards are. However, due to the coronavirus, small company owners may have been forced to abandon their chosen payment method in favor of accepting online payments.

However, the optimal small business payment option will ultimately rely on several criteria. Consider the size of your transactions, who will handle the money, and your accounting system before deciding on the appropriate way.

In this article, our DNBC Financial Group’s experts will give you a look at the payment options and payment processing systems, so you can find the best payment method for small businesses.

How to choose the best payment method for small businesses?

Payment method for small businesses 

The first decision you must make is which forms of payment your company will accept. In general, there are five payment options to consider:

• Cash payments
• Check payments
• Card payments
• Online payments
• Mobile payments

Cash payments

Customers pay in cash using bills and coins. Typically, cash payments are managed through a POS system. Cash was the most common form of payment until recently, but digital payment options have steadily grown in popularity. 

One advantage of accepting cash payments is that you get paid right away instead of having to wait for a transaction to clear. Because there are no fees connected with collecting cash from customers, cash payments also reduce overhead costs. Credit card fees can be expensive for small companies with narrow profit margins.

Check payments

Checks are documents that allow banks to transfer money from your customer's bank account to your business bank account. Checks record the payment amount and date, as well as the payer's account number and signature, allowing payment to be made to the recipient. They're common among small business owners, such as those who own rental properties and lawn service companies. To begin accepting check payments, you only need a business bank account.

Card payments

Plastic, whether it's a debit or credit card, has become the primary method of payment for consumers today. Paying with a credit card is convenient and can speed up the checkout process. Furthermore, because it allows people to finance large purchases, most customers expect businesses to accept at least one type of card. 

Small business owners benefit from this type of payment as well. Card payments expand your customer base and establish your company's legitimacy. In most cases, card payments are quickly deposited into your bank account, which can assist improve your cash flow. However, this type of payment method has a cost for small business owners.

Online payments 

Online payments are electronically transferred. A payment gateway is used to facilitate and authorize various types of payments, such as eChecks, credit cards, and direct debit payments. Online payments aren't just for online stores. Online purchases in physical stores can be made with digital wallets or apps that store credit and debit card information on a mobile device.

In terms of price and convenience, online payments appear to be the way of the future. They provide a less expensive and faster method of payment, and they provide customers with options when they check out. 

Cash and credit card transactions necessitate calculating the total price, including taxes. The best online payment methods, on the other hand, do this automatically, saving you time and lowering the possibility of error. To accept payments online, you will need to pay fees. However, these fees are typically lower than those charged by credit card companies.

At DNBC, we’ve developed the DNBCnet app to assist you to send and receive money easily and securely. Our distinct design and one-touch functionality enable you to enjoy the digital environment on your phones as well as the convenience of making transactions while on the go. 

Read more: How To Open A Small Business Account With Your Phone

Furthermore, the app allows you to make global transactions and manage your accounts with a single touch at any time and from any location. You can use the one-touch interface to easily manage your accounts and access all features. Through our app, you can transfer money between 170 nations and territories worldwide conveniently at the best exchange rates.

Mobile payments

Mobile payments are made using mobile devices like smartphones and tablets. Mobile payments may include a variety of payment methods, such as: 

• Money transfer apps and digital wallet apps 
• Payments made by swiping debit or credit cards with a mobile card reader 
• Mobile payments enable mobile transactions by using a payment method such as cards or electronic money transfers.

What is the best payment method for small business?

Online payments are a new technology that can assist you gain more customers, save money, and simplify accounting processes. However, it is prudent to compare the best online payment methods for small businesses to find the best solution for your needs.

The credit card processing industry is dominated by a few major players. However, numerous providers can assist your company in processing payments online, and they are all structured differently.

When comparing the best online payment providers, keep the following 5 features in mind. 

• Price: How is pricing structured? Which transactions are charged a fee, and how much is it? 
• What distinguishes the provider? 
• Flexibility: Can customers pay by credit card, debit card, or bank transfer? 
• Functionality: How does the payment processing software work in conjunction with your company? 
• Does the provider provide fraud protection? Are the payments safe?

About DNBC Financial Group

DNBC Financial Group is an international financial institution that offers a smart and convenient digital payment platform, and an easy online money transfer/receipt service worldwide.

The mission of DNBC Financial Group is to simplify global financial payments, smooth day-to-day transactions, and ensure that customers always meet their payment goals.