When it comes to payment processing options, small businesses need to stay competitive with the most modern forms of technology. Now, consumers are steering away from using cash or check for purchases as other alternative forms of payment become more prevalent. Not only are modernized forms of payment more convenient for the consumer, but also expedite the transaction time. In order for small businesses to stay on top of their game, they need to take proactive measures and offer the most up-to-date payment options.
Here are the top 4 payment options that small businesses should consider:
EMV
EMV is a fraud-reducing technology that aims to protect issuers, merchants, and consumers against losses from the use of stolen or counterfeit payment cards at the point-of-sale. With EMV technology, the cardholder’s information is stored in a chip that is embedded on the card. Rather than swiping the card at the point of sale, customers will insert their card into the bottom of the terminal and a unique, one-time-use code will generate for that transaction.
Since the October 1st liability shift has already occurred, small businesses should consider switching to EMV compatible products immediately. Merchants who currently do not have EMV-compliant terminals are liable for counterfeit fraud charges. The switch to EMV technology should be an easy decision, due to the heightened sense of security by today’s consumer.
NFC
Near-Field Communication (NFC) is one of the most popular payment processing options that many businesses are starting to incorporate with the rise of mobile wallets. Apple Pay, Android Pay, and Samsung pay are mobile wallets that work using NFC technology. NFC is a method of contactless communication and data exchange between electronic devices. To make a payment, consumers will hold their smartphone just a few centimeters from the NFC-enabled terminal and the payment will process. If a small business currently does not have an NFC-enabled terminal, they will need to invest in one in order to accept NFC payments. NFC is ideal for any brick-or-mortar stores, as it is a quick and easy way for consumers to check out quickly.
“Near Field Communication (NFC) will open the floodgates for profound changes in the way we use our mobile devices. While today there’s a good deal of trial, error and confusion around mobile technology including apps, QR codes, image recognition, ect., NFC will soon dominate the way consumers secure coupons and deliver payments, our phones will become our wallets,” spoke Anthony Lacovone from Augme.
Mobile Payments
Mobile Payments are the process of a point-of-sale transaction processed through a mobile device. Using a mobile payment solution will allow merchants to swipe cards, receive authorizations, capture signatures, and e-mail receipts – all from the phone that you already own. Mobile payments are a great option for a variety of industries and businesses that are on the go and can be accepted anywhere, including food trucks, marketplaces, and trade shows.
Online
Small businesses can also take advantage of having both a brick-and-mortar store and an online website for consumers to buy products. However, merchants will need to work with a third party processor in order to accept secure online payments via credit and debit cards. Having the additional option for consumers to buy products online will allow small businesses to gain more revenue through an additional convenient outlet beyond having to shop in-store during specific hours.
As alternative methods of processing payments gains more recognition, small businesses should make the move to accept the most recent technology for transactions. By installing EMV-compliant terminals, using NFC-enabled terminals, accepting mobile payments, and using an online website, small businesses will be well on their way to successfully undertaking revolutionized payment trends.