Getting Paid

Get Paid by Your Customers

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Accepting cash, checks and credit cards takes some preparation and you’ll need to make arrangements ahead of time. Customers appreciate when you allow them to pay the way they want. By offering a variety of payment types, you’ll increase customer satisfaction.

Some consumers use cash for all purchases because they do not have access to checks or credit cards. Some states even require businesses to accept cash.

• Benefits: Cash is immediate payment. Works best for small purchases made in person.
• Drawbacks: Cash payments are vulnerable to counting errors, theft and pilfering. There is some risk of receiving counterfeit bills. Cash requires trips to the bank for deposits and cannot be easily used in eCommerce transactions. Customers do not always have enough cash on hand which can limit purchases and delay payment.
• Preparation: Purchase a cash register or cash box to secure the money during business hours. Be prepared to invoice your customers promptly and consistently.

Checks are another common form of payment. If you plan to bill your customers, you should be prepared to accept checks.

• Benefits: Checks require no change and are not as easily stolen as cash. Checks are often mailed to businesses in response to an invoice. Checks work well for purchases made in person and for payment of bills through the mail.
• Drawbacks: Checks require trips to the bank to deposit and a check can take up to 7 days to clear. Check fraud is common.
• Preparation: Open a bank account so that you can deposit the checks. Most banks require a DBA registration to open a business banking account.

Credit cards and electronic payments are the fastest growing payment method, representing 63% of consumer purchases in 2008. Credit cards are versatile and work well for invoice payments, ecommerce and can be completed over the phone.

• Benefits: No trips to the bank are required and funding takes less than 3 days. People spend more when they use credit cards because of their increased buying power. Works for transactions made in person, over the phone or on the web.
• Drawbacks: Credit card fraud is common.
• Preparation: Open a merchant account with a reputable payment processor.

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Getting Paid