All business owners want to offer their clients multiple payment options to ensure everyone has a convenient, secure, and easy way to pay. But some payment methods have negative implications for your business that might surprise you! Below are 3 payment methods that can cost you big time.
We know checks are becoming less and less common and there are a lot of practical reasons for that. Most people don’t carry a checkbook around with them anymore, checks take a long time to clear, they get lost in the email, and they can bounce. While you may think accepting the occasional check is a courtesy to clients, it’s likely more trouble than it’s worth. Check out our recent blog: why you should think twice about accepting check payments with more details about why checks are rapidly becoming a thing of the past.
This one is pretty straightforward. Venmo is not meant for business use. Link to Venmo’s policy here. It’s tempting to use because of the convenience and the fact that most customers are familiar with it. But Venmo not only makes it clear that it is not to be used for businesses – they go so far as to say business payments can be reversed: “If you accept a Venmo payment from someone for a good or service and we later review the payment, we may reverse the payment, meaning you could lose both the payment and the item sold.” Save yourself a major headache in the future by only using Venmo for payments between friends, family, and of course those crazy group dinners where someone always pays the whole bill so they can get credit card points.
Paypal, Stripe, and Square
These platforms offer impressive benefits, payment security, and an overall positive experience for your clients. But, as an individual user, you are paying retail rates – anywhere from 2.9% – 3.5%. And in these uncertain times – where every dollar counts more than ever – you could be pocketing less for your services than you need to! Partnering with a vendor like Rock Paper Coin offers you the benefit of a low group rate for processing fees. RPC works hard on your behalf to negotiate the lowest group rates possible with their processor. There is power in numbers and with RPC, you can leverage that to increase your bottom line. In addition, there are often hidden fees, batch fees, and confusing fee structures to navigate when you go directly to a payment processor. Knowing you will always be charged a flat rate means better budget forecasting and peace of mind about payments.
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