4 Challenges Small Businesses Have to Face When Processing Payments | Managing payments is a much tougher task than many small owners imagine and one of the reasons many of them fail. Some use inefficient systems that don’t allow them to get a full vision of their books. Others are losing money on certain types of transactions because they’re using the wrong solutions. These are all things that could end up eating into your bottom line and that you need to fix right now. Let’s take a look at a few challenges small businesses have to face when processing payments.
Lack of Integration
Many organizations still ask their employees to input transaction information manually. This is probably the case in your business if you are not using a modern platform. The process is tedious and wastes a lot of your employees’ valuable time.
Instead, you could have a fully integrated platform built by a provider like Accredited Interchange that will allow transaction records to be automatically updated. It will also make tax reporting much easier as your system can be integrated with your bookkeeping solution. In addition, it could be designed to be integrated with a CRM system, which will make following up with customers or prioritizing them much easier.
High Processing Fees
This is another major issue small businesses have to face. There is no point in using a POS service if you have to give up a large chunk of your profits just to use it. Here, you will have to use the number of options available to your advantage and compare rates. Make sure that you pick one that strikes the perfect balance between reliability and affordability.
Security Issues
Identity theft is on the rise and isn’t going anywhere soon. That makes information security a priority for any business.
Breaches can be disastrous both for your clients and your business, and if you’re a fledgling operation, a major one could be enough to destroy it. Any service that you pick has to be PCI and DDS compliant. Doing this alone will greatly reduce the risk your customers have to face and will protect your business.
Multi-Channel Payments
Some businesses may also be struggling with accepting different types of payments. If your system only supports a few payment processing and card reading features, then you could find yourself severely limited. Things become even more complex if you need to accept mobile or online payments. The last thing you want is to have to work with a POS service for in-store purchases, one for on-site deliveries, and another one for your eCommerce store.
The only solution is to go with a fully integrated platform. When all your payment processing types are under one platform, payment processing becomes faster, simpler, and more cost-efficient.
These are some common examples of issues small businesses have to deal with when processing payments. This is a vital part of any business, and if you can improve there, you could improve your operation at many levels.
