Each payment method has different advantages and disadvantages. No one type of payment is best. The best payment method depends on the needs of your business.

When choosing payment methods, think about how their advantages and disadvantages affect your customers and your business operations.

For example, cash is private and reliable, but it is expensive to handle and has a higher risk of theft. On the other hand, EFTPOS is quick and has a lower risk of theft, but requires electricity and a phone connection.

Check out these questions when choosing a payment method:

  • How do your clients customers prefer to pay for your goods or services?
  • Do you need quick access to business funds to keep your business moving forward?
  • Will you have to follow up with customers for payment of your goods or services?
  • What costs are involved for each payment method?
  • Is there a delay between purchasing and distributing your inventory and receiving payment?

Some of the things you will need to consider when choosing a payment method for your business include:

  • Privacy – Different payment methods are more private. For example, credit cards automatically record transactions. Some customers might prefer to pay cash for certain goods and services, such as medication, for privacy reasons.
  • Service fees – For example, EFTPOS and credit card providers often charge service fees.
  • Transaction costs – e.g. the bank may charges a cost for each transaction.
  • Risk of theft – Some payment methods increase the risk of theft. For example, cash is easy to steal since it doesn’t go directly into your bank account.
  • Reliance on electrical and telecommunications infrastructure – For example, EFTPOS uses electricity and needs access to a phone network. These payment methods can be unavailable if these systems go down.