As a retailer, how you accept payments and what you accept them can play a massive part in how much money you take and how profitable you are. Customers need to be able to pay via various methods. If you're not allowing specific popular methods of payment, then you might be unintentionally alienating certain customers and limiting your profits.
This post will look at some of the most common payments stores should accept to help them boost sales and entice customers through checkout.
Cash is still king in the US, and it is the primary payment method for many people. At a minimum, you need to still accept cash payments; only 4 in 10 consumers say they don't pay in cash at all. The reason is that cash is more accessible for most people; it requires no additional fees or transactions, and people know exactly where they are when spending with cash. So, if you're thinking of going cashless, it might be a good idea to hold off on this a while longer.
Debit and Credit Cards
Next, after cash, America's most significant payment method is via credit or debit card. More and more people are using their cards to make purchases than ever before, both online and in stores too.
Payment with credit or debit cards offers the consumer more protection over cash; however, for retailers, this can often come with a fee of around 3% of your total sales, depending on the provider you use. Finding the right emv card reader for Level III transactions can help you to increase the number of card payments you can accept without landing you with the hefty fees associated with this type of transaction.
Google Pay and Apple Pay are becoming more and more popular, especially with the younger generations. This type of payment requires the user to pay with their smartphone instead of a card and allows them to connect directly to their bank digitally by placing their smartphone over the card reader. They work the same way as traditional card payments and are often known as contactless payments. If you offer card payments, making sure you can take contactless payments is a must. In 2022, contactless payments of this kind accounted for over 50% of in-store retail sales, so it isn’t just a trend that is going away; it is becoming more prevalent than ever.
Gits cards, store cards, and even store credit are more than another form of payment. If you sell and pay via these sources, you're ensuring you keep money within your ecosystem. Let's say someone is looking for a gift for someone or wants to help a person pay for theirr shopping without buying items themselves. If you aren't able to provide a gift card or store credit of any sort, they will go to someone who will. By providing this, you can please the customer and ensure that you get the sale regardless of when it is cashed or even if it’s returned at a later date, as you can simply refund back onto the card or issue another voucher to be spent in the store.
Photo by energepic.com: https://www.pexels.com/photo/black-payment-terminal-2988232/