When looking for ways to accept payment for your products and services, you have a number of different options to consider. From e-wallets to credit cards, there are a variety of factors to think about before you decide on a specific type of non-cash payment.
Accepting credit cards
Accepting credit cards as a non-cash payment can help boost your business, and you’ll find that you can save money in the long run. Whether you run a brick and mortar store or operate online, you’ll want to invest in a merchant account to make the most of your purchases.
You may already know that you can take credit card payments, but you should be aware of the many different options available to you. It’s important to know how to choose a processor so you don’t end up overpaying. There are various types of processors ranging from a flat fee to a per-transaction rate.
For example, you could consider a PSP, which is the least expensive method of accepting plastic. However, you should make sure to read the fine print, because some PSPs charge for setup and account maintenance. If your business is especially high-volume, you may end up spending more than you had planned on the service.
Checks
A check is a check is a check, but not all payment methods are created equal. Cash is still the most common form of payment, but the number of electronic payment methods has increased in recent years. The following are the key factors to consider before choosing the best non-cash payment method for your business.
Obviously, you’ll have to decide which one fits your budget and your company culture. However, it is also important to consider that your decision may not be as simple as it sounds. Whether you’re a sole proprietor or an executive in a larger company, the choice of payment method is an essential factor in your success. Before making the decision, it’s a good idea to do a little background research, which should help you narrow down the list of viable options. As a result, you’ll be able to find the most effective payment solution for your small business. Choosing the most appropriate payment method for your small business will allow you to spend more time enjoying your work and less time on paperwork.
E-wallets
If you are planning on developing an e-wallet for non-cash payments, you have to take into account a number of factors. For instance, you need to make sure that your e-wallet is secure. You also need to consider whether it offers a seamless payment experience.
The market for e-wallets is growing rapidly. According to Statista, the value of transactions via e-wallet will be more than 10 million USD by 2025.
As part of your research, you should also find out what your target audience expects from an e-wallet. This can help you choose the right features for your future product.
Moreover, you should also consider the type of e-wallet your business needs. There are three main types of e-wallets – open, semi-closed and closed wallets. Semi-closed wallets allow users to perform certain transactions with a predetermined list of retailers.
Similarly, open wallets let users withdraw or send funds. They can even perform ATM withdrawals. However, users cannot withdraw from closed wallets.
Chargebacks
Chargebacks are a process whereby a customer asks the bank to reverse a transaction. They are also known as a dispute. A chargeback can be issued for many reasons, including fraud, unauthorized transactions, or a misunderstood delivery date.
The chargeback process is designed to increase consumer confidence. However, it can lead to problems for businesses. Businesses can lose revenue and damage their reputation. It can take months to resolve a chargeback. If a merchant refuses to respond, they may be charged a non-response fee.
There are two primary participants in the chargeback process: the merchant and the credit card network. These groups are responsible for assessing the evidence, making a final decision, and paying the resulting chargeback fees.
Although the chargeback process is meant to help consumers, it can create headaches for businesses. Having a good understanding of the process can help businesses fight fraudulent chargebacks more effectively.
Before a merchant agrees to a chargeback, they should make sure they are in compliance with their merchant agreement. For example, if a merchant is a member of an association, such as MasterCard or Visa, they should know that this organization will be the first to take action if a chargeback is filed.