Businesses and customers now have different choices for handling purchases.
When it comes to the question of “How to accept payments for my business,” here are four payments options to consider.
Online and Mobile Payments
You don’t have to be face-to-face with your customers to accept payments for your products and services. Set up an electronic payment system. (If you are under 18, CashApp may be your best bet – users as young as 13 years old can set up access to an account.)
1. PayPal and other online payment tools
PayPal is an easy way to accept credit and debit card payments online. This payment system also allows businesses to accept payments in person and payments from customers using their smartphones. (NOTE: You have to be at least 18 years old to establish a PayPal account.)
When accepting in-person payments with PayPal, entrepreneurs can use their tablet or smartphone as a payment center.
While there are no setup fess and no monthly fees for a PayPal account, there are transaction fees for accepting payments from customers.
Other popular online payment tools include Stripe and Square.
2. Venmo and Cash App
Two of the most popular mobile payment services are Venmo and Cash App. These apps are commonly used as “peer-to-peer transfers,” referring to transfers between friends or family members. (NOTE: You have to be agt least 18 years old to establish a Venmo account; you can use CashApp at 13.)
Some entrepreneurs, freelancers, and small business owners also use these apps.
Cash App can work for new businesses that are just getting started and do not handle a lot of payments.
Venmo is a more secure choice and it allows businesses to make a larger amount of payments by offering business Venmo accounts.
Sometimes entrepreneurs need to accept payments in person, even if they don’t have a physical store or office.
3. Credit Cards and Debit Cards
You can accept credit card and debit card payments from customers in person. This can include your business’ store/office, the customer’s home/office, or at an event or marketplace setting.
We previously mentioned PayPal to handle credit card payments in person.
You could also use a virtual terminal which is a web-based app that lets you process credit card payments in person. Virtual terminals can also handle credit card payments by telephone or email.
4. Cash and Checks
Cash is still one of the easiest payment forms for both customers and business owners. There are also no processing fees to worry about with cash payments. (NOTE: Generally, you must be 18 to establish a bank account on your own, but you can set up a custodial account with an adult at a younger age – inquire with your bank.)
Checks are becoming a less common type of payment.
They are usually used for larger payments totaling near or over $100. Many businesses still accept check payments.
Just keep in mind there are often processing costs and other fees business owners pay while handling check payments.
Final Thoughts on How to Accept Payments for My Business
Most of your customers will use one of four common payment types for your products and services.
You can accept online payments by using:
- Cash App
Also, you can accept payments in person from customers paying with credit/debit cards, cash, or check.
You don’t need to accept all forms of payments. But accepting at least a few different types of payments makes it easy for your customers to pay you.