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Merchants object to offering multiple payment methods to their customers for several reasons, but the most common is cost. While many goods and services are easily measured by their price tag, payment processing is not so cut-and-dry. Providing more than one way for a consumer to pay might seem like it will rack up bills. In reality, it’s one of the simplest tactics for increasing revenue to your business.
Giving your customer more choice and an easy-to-use payment system can remove most of the obstacles and objections that cause your business to lose out on money. These choices can mean the form of payment a consumer chooses, or the channel they prefer to use to make that payment. Merchants will find that accepting multiple payment types through as many channels as possible is the most effective way to increase the number of payments they receive, boosting company revenue.
Advantages of Accepting Credit Cards
According to data from a 2017 Federal Reserve Payments Study, between 2015 and 2016, credit cards had the highest growth rate of any payment method surveyed. If you’re not utilizing credit card processing services for your customers, you’re creating an inconvenience that could result in low satisfaction and raise the rate of abandoned payments your business experiences.
The immediacy of credit card payments is another advantage of accepting credit cards for your business. With an ACH payment, merchants can potentially take a payment and not know it has failed for several days. Credit card payments can either be accepted or denied in a matter of seconds, saving your business from confusion during reconciliation. This can also help you avoid issues when trying to reach out to a consumer days later to obtain another form of payment.
Advantages of ACH Processing Services
Not every consumer wants to pay with a credit card. ACH payments grew between 2015 and 2016 by 5.3 percent. Obtaining ACH processing along with credit card processing services gives customers two increasingly popular payment options to choose from. Providing multiple payment methods will open your business to a wider range of customers and provide the convenience they seek.
Advantages of Accepting Online Payments
Using both ACH and credit card processing services increases the likelihood of a completed payment. Where you accept those payments, however, can be just as important. A recent study found that 56 percent of all bills are now paid online. This number proves that merchants who bill for their goods and services will lose a big chunk of revenue without a customer-facing online payment portal.
A mobile-friendly platform is another important element of online payments. More than 65 percent of respondents surveyed by The Pew Charitable Trusts have either heard of paying bills on a smartphone or have done so themselves. With the increasing number of smartphones in use daily, this number will continue to rise. Show your consumers your business is in-tune with current technology trends by offering an online payment platform that is easy to navigate no matter what type of screen they use.
Advantages of EBill + Payment System
There are now more ways than ever to conduct business digitally. Some merchants must receive signed documents and authorizations from their customers as part of the payment process. The time and hassle of paper documents lengthens the time it takes to collect a payment and can turn a potential client or customer off of your business altogether.
By using a digital billing and payment solution like eBill + Payments, you speed up your business cycle by sending necessary documents directly your customer at the time of the payment request. Merchants can now obtain legal wet signatures and payments from a customer in one simple transaction, in a matter of minutes.
Sending a bill plus the payment request to a customer’s email account or mobile phone capitalizes on the current popularity of digital payments while offering security and avoiding unnecessary customer logins or extra payment steps — benefitting both customers and merchants.
Whatever digital signature plus payment product you choose, make sure it is compatible with both ACH and credit card payment processing services. Providing your customers with choice is essential to collecting the most payments possible.
Advantages of Accepting IVR Payments
Interactive Voice Response calling systems are another popular channel for customer bill payments. Combining credit card processing services with an automatic telephone system that accepts payments 24 hours a day is a powerful way to boost revenue–without the need to hire extra employees to process the payments.
Advantages of In-Person or Cashier-Initiated Payments
Just as some consumers prefer to use credit card processing services and some prefer ACH, digital and customer-initiated payments are not for everyone. The Pew Charitable Trusts found that “72 percent of mobile payments users are Millennials or Generation Xers.” Your business must be sure you offer payment options that will work for older generations and late-adopters of technology.
If your business takes payments in person, you need a way to process those face-to-face transactions through a cashier’s payment terminal. Depending on your business model and customer base, you may wish to provide an option to pay over the phone by speaking live with an employee. You should also decide if a card swiper is necessary.
Many small merchants might not be able to afford the high cost of an EMV swiper, but this doesn’t have to stop you from accepting swiped payments. The move to EMV swipers is an effort to curb fraud and lower the rate of consumer chargebacks. However, if chargebacks are a rare occurrence in your business or industry, you may find an encrypted swiper will work just as well for your processing needs and comes with a much lower price tag. EMV swipers allow the financial burden of returning the funds from a chargeback to fall on an issuing bank rather than your pocket. If you’re not likely to experience many chargebacks in your day-to-day, take some time to consider whether the cost of a more expensive swiper would ever be made up over time.
Processing with PDCflow
PDCflow provides an all-in-one payment management system for merchants who hope to maximize both their revenue and their customer’s payment experience. We offer:
- Credit card processing services
- ACH processing services
- Online payments
- eBill + Payments
- Cashier screen
Payment type and channel is just one aspect of choosing the best processor for your payment needs. To understand all the items you must consider before picking a processor, download our buyer’s guide: