Your business is open and ready to take on new customers. An excellent strategy to use is to accept multiple forms of payment. Today’s blog will focus on different forms of payments and devices which you can complete your companies financial transactions.
- Cash – Like the old saying goes, “Cash is King!” It is the best way to get paid if possible. It gives you instant value and has no hidden fees which you have to pay from it. Surprisingly, less people are using cash for transactions. Many in generation Y are not even carrying around cash with them! While this is the ideal face to face payment, it may limit you from good potential customers who are interested in your products or services if this is your only option.
- Check – A check it a popular way of conducting business. As a company, its best to have a business checking account open. You may need a Tax Id or EIN number to open a business account along with your State Business information, (LLC, Corp, Etc). Customers have the flexibility to write a check to you in person, mail it, or even leave it under the front doormat. (As crazy as that sounds, tt’s true, I’ve collected many checks under the “welcome home,” mat) If you have your own business account open, you will not have to pay any fees to cash a check. However, if you don’t have an account, most banks will charge you for this transaction. A customer can also bounce a check on you if there are not sufficient funds available. (which there is usually a $25 fee which you have to pay until you are reimbursed by your customer). Most in-state checks will cash overnight. Some out of state checks can take longer. (Up to 5 business days) This is something to keep in mind when asking for a deposit and showing up for your first day of work to be sure that the funds have cleared before you begin. All & all a solid way to transfer funds.
- Online Payments – Every year, online transaction increase! If you are not accepting credit cards and utilizing online payments, you are losing out on business! Companies like PayPal have a cornucopia of online payment options like payments buttons, recurring payments, send money via email & secure invoices. There are some fees associated with these types of transactions. You can expect to pay around 2.99% & $.30 fee per transaction with a basic PayPal account. This is a small price to pay to attract a customer who might not be willing to spend his/her cash, but is more then willing to put a few thousand dollars on a piece of plastic! I’ve had customers interested in my service and tell me that, “money is a little tight.” I then let them know, “I accept credit cards.” One customer in particular paid $6,000.00 via PayPal invoice. If I did not offer this option, I would have NOT been able to land the job. My fee for using PayPal was $179.70, a small price to pay to land a profitable job.
- Credit Card Dongles – Over the past few years, smart phone technology has been progressing rapidly. Credit card companies took note and created Dongles which hook right up to your smart phone! Most of these are FREE, portable, and have similar fees as companies like PayPal listed above. What is nice about the dongle is that you can take it anywhere, (where there is cell service), and instantly complete a credit card transaction! Utilizing this type of technology will give you the flexibility to close jobs on the spot and collect your payment. I see this type of technology increasing greatly for business transactions in the future.
- Bitcoin – The final payment option is fairly new. It’s called Bitcoin and its a cryptocurrency. Without getting into to much detail about this cutting edge payment structure, a Cryptocurrency is a medium of exchange using cryptography to secure the transactions and to control the creation of new units. It’s private, charges very small fees, and fluctuates in value similar to a stock. You have to open a Bit Wallet account in order to use Bitcoin as its a digital currency. (there is no physical form of it, all transactions are done digitally on the internet). Many entrepreneurs are excited about Bitcoin and have large amounts of this cryptocurrency which he/she is looking to spend. Once you are paid with Bitcoin, you can either keep it as a digital currency and buy other goods & items or exchange it for cash. Some analysts predict that Bitcoin will be the #1 currency used in the world within 10 years. Its popular if you are doing transactions internationally as there aren’t fees to move from one country to another. While still young compared to other forms of payment, I see a HUGE upside to this technology. Companies like Amazon, Target, CVS, Subway, Victoria’s Secret, Tesla, Sears, Kmart, Home Depot, and Dishnetwork, (to name a few), jumped on the Bitcoin wagon and are accepting Bitcoin as payment. You have to ask yourself, if major players in the economy are excepting Bitcoin, why aren’t you on board yet?