6 ways to get paid as a business owner
So you’ve done the hard work, sent out that invoice, and now it’s time to secure the bag 💰.
Getting paid is a crucial part of your business journey, and there are several options available to make it as smooth as possible. Let’s dive into these payment methods and find the perfect fit for your business.
Debit/Credit Card Terminals
You’ve probably seen those big machines at retail stores and restaurants – debit and credit card terminals. While they’re quick and convenient, it’s important to note that they come with a price. Fees for credit card transactions typically range from 1.5% to 3.5%, depending on your service provider. Debit transaction fees vary from $0.25 to $0.50, depending on your bank. These terminals offer speed, but at a cost.
Preauthorized Debit (PAD)
For businesses with recurring payment clients, PAD is a game-changer. You can automate payments to be withdrawn on the same recurring date, saving you time and effort. Companies like Rotessa can handle these transactions and perform auto-deposits into your bank account like magic.
Cheques are still a popular payment method, but some banks may charge additional processing fees. Before accepting cheques, review your bank’s policies to ensure you’re not surprised by hidden costs.
E-transfers are a convenient way for customers to send money to your email address via Interac e-transfer. Many banks, including RBC, offer free and unlimited e-transfers. It’s a hassle-free option for both you and your clients.
Online Options – PayPal, Square, Stripe
If you prefer online transactions, platforms like PayPal, Square, and Stripe offer easy credit payment processing. You can even add a payment link to your Xero invoice, making it seamless for your clients. Keep in mind that these services come with fees, typically around 3.00% plus $0.30 per transaction.
Here’s a pro tip: Keep your payment options simple and convenient for your clients. If paying you becomes a chore, clients might delay the process. Choose one or two payment methods that align with your business and your customers’ preferences. The goal is to secure the bag while providing a hassle-free experience for everyone involved.
So, go ahead and secure that bag. Choose the payment method that suits you best, and keep the focus on growing your business. It’s all about making your entrepreneurial journey as smooth as possible.
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