Are there any best practices you might be unaware of when it comes to payment processing? Shortcuts and insights that would make your business run smoother? Yes! And we are going to make sure you find out those details as we list these best practices and reasons they matter so much to business owners.
8 Best Payment Processing Practices for Small Businesses
- Diversify payment methods
- Consider growth
- Monitor cash flow
- Embrace automation
- Offer Buy Now, Pay Later
- Accept digital wallets
- Standardize contactless payments
- Seek 24/7 provider support
Each of those eight practices aims to make your business run more efficiently, add revenue, scale operations, and increase profits. All great things, right?
It is hard to say which of the eight you should focus on first. Yet, diversifying payment methods and leveraging payment processing tools for growth are always smart to prioritize.
Automation is also important, so we’ve got tips coming up for how to use automation in your business.
First, though, what about mistakes with processing? Knowing what to avoid helps, too.
Roadblocks to Streamlining Your Business’s Payment Processing System
- Insufficient data security
- Clunky integrations
- Weak fraud prevention
- Extreme processing fees
All four of those problems can make operating a business a struggle or, worse, a nightmare. High fees can cause business owners to live “hand to mouth” and prevent them from growing the business. Fraud also eats away at profits, while unreliable integrations increase your workload, as well as your staff’s.
When you work with a proven customer-focused provider, those headaches and payment processing pitfalls can be avoided altogether.
So, be sure you compare providers before signing a contract.
Automation: 9 Effective Payment Processing Strategies for SMBs
Time for those automation tips we promised.
#1 Use payment platforms that auto-sync with accounting software
#2 Marketing emails using personalized customer data
#3 Update to newest fraud-detection that requires less human oversight
#4 Set specific reports to be created at ideal times
#5 Loyalty rewards based on customer’s recent activity
#6 Auto-send payments through ACH transfers after human approval
#7 Use AI tools to match invoices to purchase orders
#8 Automatic invoicing after service marked complete
#9 Late payment reminders set to send after predetermined number of days
That list could grow longer as new automation tools arrive daily. The good news is that you don’t have to invest in ten different platforms to benefit from automation. Top-notch payment processing platforms will have all the automation tools your business needs.
See, point-of-sale systems are not just for sales at that moment in time. When fully utilized, these powerful platforms lead to sales tomorrow, next month, and for years to come. That’s the power of payment processing and automation tools.
*Need a niche automation tool? There’s an AI for finding one.
Ok, it is time to look closer at one of the lowest-cost payment processing options.
Direct Debit Payment Processing
Two forms of direct debit are e-checks and ACH (Automated Clearing House) payments. Depending on your type of business, these two options can save huge money on fees versus credit cards.
What type businesses typically use them? A few examples below:
- Landlords
- Freelancers
- General contractors
- Gyms
- Subscription businesses
- Insurance brokers
- Home services
- Stores offering installment payments
There are more examples and growing every week as entrepreneurs get creative with how they market their goods and services— particularly using subscription models.
Forbes reports the global subscription industry will reach $904.2 billion by 2026!
That means there is tremendous upside to devising innovative ways to offer your customers and clients a subscription option. Three creative examples you may not have considered:
- HVAC companies promoting yearly inspections for a monthly fee
- Gyms offering meal plans at an additional monthly fee
- Multiple companies combining their offers – “package subscriptions” that are hard to pass up for consumers
Moving on to more detailed looks at processing best practices.
Platform Integration and Cash Flow
The bottom line with payment platform integration is the time saved and errors reduced in a business. Examples include:
- Real-time data syncing
- Automated reconciliation
- Centralized financial management
- Enhanced reporting
- Improved collections
- Streamlined accounts receivable
Each of the above makes your job and life easier. How?
There’s a mountain of useful data that gets created by all your payment transactions. It’s useful, but without smooth integration with systems you already use, the mountain overwhelms you. So it’s great to have a knowledgeable processing company rep clearly explain how their platform works.
Having clear reports and quick access to your financial information makes day-to-day operations simpler to manage. But just as critically, these features provide insights for scaling your business.
Our knowledgeable representatives are friendly and always excited to help you get going.
Best Payment Processing Practices For Small Businesses FAQ
What is one hidden best payment processing practice for small businesses?
Ensuring customers know about all your payment options. Remember, if you don’t promote these options, many customers will be unaware and may shop elsewhere.
How can I increase my sales with payment processing tools?
Collect email addresses at checkout and use email marketing, which can have an ROI of up to $36 to every $1 spent. The majority of major brands use email marketing to offer discounts and stay top-of-mind for their current and future customers.
What is one hassle my payment processing platform can help my business avoid?
Confusion and stress at tax time. With a streamlined system, your records will be more organized, and you will be better prepared to hand off this information to your tax professional.
