With the technological advances of today’s banking system, there are more options to get revenue into your consulting bank account. There are advantages to accepting more than one payment method from your clients. One of the most important is convenience for your clients, which will start off a business relationship on a good note. The following payment methods will be explained below: check, electronic funds transfers, and credit card processing.
Checks
Checks have been an accepted payment practice for quite some time. In fact, they have been around since the 9th century, so that merchants could make payments without having to carry around large amounts of gold and silver. There is still wide usage of checks in the United States, mostly in business to business commerce (consultancies). Banks have figured out ways to speed up the checking process by electronically transferring checks from the drawer bank to the drawee bank. This way you may be paid faster. One thing to think about is that producing and handling checks is a big expense for banks, and they are trying to add fees to checking accounts to deter customers away from this payment type and into electronic payments, which are much less expensive for banks to handle.
Electronic Transfers
Electronic transfers (EFTS) can be especially helpful when a payment is urgent or overdue. They can simply transfer funds from their account to your account with your banking information and a click of a button.
Credit Card Processing
Credit cards are often thought of being a payment method for brick and mortar retailers and e-commerce businesses, but you can also take advantage of accepting credit cards in your consulting business. In fact you can set up monthly, recurring payments, so you and your client do not have to worry about performing an individual payment every month. There are fees attached to a merchant account including a percentage of every sale and monthly fixed fees. It is important to really understand what your service provider’s pricing, policies and customer service standards are. There are many companies in the merchant account industry that do not mention the small print, so it is important to choose a company that is transparent.
Conclusion
In anything you do in your business, analyze the pros and cons and make a decision based on your own research and the recommendations of the peers you trust. Different payment methods are more relevant to your niche than others, but offering more than one payment option will be a jumpstart to greater revenue.
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