In a world where immediacy and convenience are of high demand from consumers when transacting online, businesses need to adapt to the changing environments and expectations.
One area of business that has experience tremendous amounts of change is how businesses accept payments for goods and services. With options to pay for these goods and services increasing, businesses need to consider providing more flexible payment options to facilitate company growth – this means finding the cheapest way to accept credit card payments for example.
Customers may have demands they want fulfilled immediately, but they don’t always reciprocate when it comes to winning their business – for example, if your business doesn’t accept their most ‘ideal’ way of payment, they will most likely buy from your competitor who offer more suitable payment options.
It may mean that in order to grow sales or perhaps facilitate the collection of outstanding debts, you have to offer multiple payment options rather than only accepting a specific form of payment. If you are looking to expand your payment options to your customers, we have outlined a few tips to consider to make sure you have the right solution to prosper long-term. We understand all businesses are unique, whereby not every business needs support by a direct debit provider Australia as they may not have recurring billing or provide a subscription service, so its important that you conduct your own due-diligence when deciding what solution makes sense for you.
- Be Flexible
When you are collecting payments from customers, it’s always good business to be flexible. By allowing a bit of leeway when the payments are made, you make your clients feel more comfortable about paying in installments. Statistics show that the best days for customers to make their payments are Mondays, Thursdays and Fridays. If you can set your payment times for one of those days, options are likely to be more attractive. - Allow More Frequent Payments
It’s always easier for people to part with small amounts of money over time rather than a huge sum all at once, so it makes sense that more payments mean smaller amounts paid frequently. Weekly payments are also the choice that’s least likely to be defaulted. - Ensure Security
Keeping your data secure is vital for any successful business. Knowing that you are compliant with the regulations of your industry makes people feel more secure about using your services.
As a business you should aim to be a compliant company under the Payment Card Industry Data Security Standard (PCI DSS). That means that all of the policies, structures, procedures and technology is protected as it’s used through the company. - Don’t Skip Having Credit Control
Using credit control has its drawbacks but you should never skip it. Instead, have a plan and procedure in place to identify and pursue unpaid invoices.
Using a third party to do your billing and/or payment collection helps solve this problem, giving you the time and energy to focus on running the company and providing outstanding service to your customers. - Be Ready to Treat Non-Payments
Missed installments are inevitable. You should expect that a small percentage of your payments will bounce for several reasons, including insufficient funds. Dealing with missed installments is as much part of your credit control process as normal payments. Ensure there is a due process for actioning missed installments. - Provide Lots of Options
The best way to maximise collections and make things easy for your customers is to offer plenty of payment options. Technology makes this easy so there’s no reason not to. - Prioritise Retention
It’s a given that once your customer has established a payment plan and form of payment with you, it’s a hassle to move to another company. Set up a payment plan that the customer is comfortable with to increase retention probability. - Save Money and Time by Outsourcing
It’s a big job for administration to follow through on missed payments. Customers who want to change their payment schedule or who have a new address or who have questions about their account add to the burden. Managing payment plans takes time, which is why it can be so helpful to outsource payment solutions. Doing so frees up your time and saves administration costs at the same time. - Working with Others
It’s vital that the systems you’ve put into place for your business management needs are able to communicate with each other. Using application program interface (API) integration enables the tools, products and applications to work together, which gives your customers more options. - Consistent Flow of Cash
Cash flow is what makes a business run so relying on large payments can really slow things down if one or two are missed. Introduce effective payment plans to count on consistent cash flow and reduce time and effort required to chase missing payments.
Providing different payment options is an effective cash management tool if well-administered, as it allows you to collect payment from customers who use different methods that are most convenient to them. It can ultimately define whether a customers transacts with you or perhaps even settles a debt. Solutions like direct debit facilities also provides flexibility and automation for subscription or recurring billing businesses…….
About the Author
Pay Advantage is Australia’s leading payment solutions provider, offering a number of convenient and flexible payment options like direct debit for small business. Whether you’re looking for a reliable direct debit company, custom virtual terminal, upgrade your billing with BPAY or ability to accept credit card payments, they can provide it all backed by their PCI compliant technology and award winning service.