Taking Payments Reading Answers

This has to be the one thing that all businesses have in common. Working out the best way to accept money for the goods or services you provide in the easiest and most cost effective manner is the key to good cash flow and healthy liquidity. Mastering this important process can ensure your business' success.

Cheques Although these are on the way out, it is still important to be able to accept this method of payment. There are some safeguards to take note of, however, as bad or bounced cheques are expensive and annoying and can lead to being swindled. For retail, always get the payers to show you a photo ID and to sign the back of the cheque in front of you. Ask for two ID's if you're suspicious. Get the home address and telephone number as well. Examine the cheque too, as today it's easy to forge a cheque. Your bank can still give you advice on what to look for when examining a suspicious cheque.

Credit and Debit Cards Both credit and debit cards are very useful for taking most types of payments. They are increasingly popular due to their convenience and accepting these cards is a must for retail and very helpful for larger businesses. Businesses will make more sales, as customers are more likely to impulse buy when they have a card, as most people don't carry too much cash on them. They're better than cheques for cash flow too, as you don't have to wait for cheques to clear.

Payments by card also cut down on employee theft, as cash is always vulnerable.

Although credit and debit cards look similar, credit cards have more costs involved. Both have set up fees, equipment costs and monthly statement fees, but the commission on each sale for credit cards is bigger. Processing small amounts can still incur relatively high fees, so you might want to levy a small charge to your customer to cover yourself.

Specialist Web Payments Not everyone sells online nowadays, but it's extremely

common. Apart from card payments, various companies offer payment services (we will avoid giving big brand names here). These payment service companies allow people to use traditional cards or people can have accounts and debit them as they would their bank accounts.

The advantages of these companies for retailers are that they do not charge a monthly fee and the set up is simple and cheap. The only costs are a percentage commission on purchases. For customers, payment is free. This makes lots of people use these services and therefore it's more important to be able to accept them. Most web developers will be able to set up these payment services for you.

Biometrics The payment system of the future? Biometrics involves consumers registering their fingerprints with outlets that have the technology. The payment is done by fingerprint and the account is debited accordingly. Often, the system uses the safer two-factor authentication, in which the finger scan takes the place of the card swipe and the user types in a PIN as usual. There are no more worries about forgetting or losing your purse or wallet and fraud is currently impossible. The only problem factor is keeping your chosen finger in good shape - no paper cuts or dry and cracked skin!

Mobile Phone Payments Smart phones with an appropriate app are able to make and accept payments. This also will be a very common way to pay in the future, as phones have become the all in one communications and business tool that everyone uses. Early worries about fraud have been discounted, as a PIN is also needed for any kind of outgoing payment. There are some ongoing worries about security, but it seems as though the developers are developing safer and safer systems.