Keeping up with Payment Methods

Money has dramatically evolved from barter trade to coins, to paper, to plastic and now, smartphones. This transformation has pushed retailers to keep up with customer demands—and these days you’re likely to find a range of payment methods anytime you have to pay for something.

While most buyers prefer paying through the multiple modern systems like debit & credit cards, or even mobile apps, some consumers still like it the old way;  either through cash or a written check.

Such businesses are happy to take payments in cash or check but not via plastic cards. This way, they evade merchant fees charged by Card brands like MasterCard and Visa which manage 70% of all credit card processes in the United States.

Again, there’s been a significant change in the way customers interact with money, and many micro-business owners have added alternative payment methods in an effort to cover every buyer’s needs. Over the past 20 years, banks have attracted consumers with credit & debit cards, and shoppers have so far embraced their convenience and bonuses like reward points, cash back, and the fact that you build credit with time.

And from the look of things; plastic is slowly trumping cash, more so in retail transactions. In fact, NerdWallet.com reported in a 2017 survey that “only 21 percent of POS purchases were made with cash,” whereas those made with a credit card were 34 percent. Plus, 2 in 5 U.S. citizens (44 percent) have admitted they frequently use debit cards for day to day purchases like groceries.

Federal Reserve Says Checks are still popular

These days’ shoppers rarely use cash, money orders or checks to make a substantial payment. However, the Federal Reserve has reported that checks are still in use— most of today’s paper checks are payments to retailers, with micro-businesses on the lead.

But why are checks still the business owner’s second-best? According to small retailers, it is because of one; you don’t need an elaborate setup to take a check like you would for online payment.  And two; you do not incur a fee as with card payments.

Conclusion

If you haven’t started taking plastic, you can open a merchant account with BPP, get a payment gateway and have the necessary gadgets installed for you so you can begin soon.

Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry has helped thousands of business owners save money and time.