Times are tough, and with the current cost of living crisis and economic recession, one thing that’s on people’s minds right now, including business owners, is how to maintain a stable cashflow. And one way to achieve this as a local business owner is by ensuring you collect the money you’re owed on time, and paying the lowest fees possible.
In this article, we offer tips on how to get paid instantly and with low fees by customers, so that, in turn, payments to employees, suppliers, and other parties can happen smoothly and on time, thus reducing the stress around cashflow for business owners.
Offering customers a smooth payment experience is fundamental to ensuring payments are successful, and there are no delays.
You can give your customers a smooth payment experience by offering multiple payment options, such as card and bank payments, so they can choose their preferred mode. You should also try to keep your payment process integrated with your website or in any case with, so customers don’t have to navigate other sites to pay for your products and services.
It’s also advisable to reduce the number of steps in the payment process. Make the process as short and seamless as possible!
Here are more tips on how to give your customers a great payment experience.
Although card payments are among the safest and fastest ways of collecting money from customers, they have a major drawback—the fees!
On average, you are charged 3-4% fees on every transaction when using card payments. This is because many parties are involved in the payment process, from banks to payment processors, and everyone wants a slice of the pie.
So, as a local business owner, if you calculate how much you are charged on transaction fees out of your annual sales, you’ll be surprised to find out that you're forsaking a large amount of money which could instead be part of your profits!
So, as much as card payments help you get paid faster, you might end up losing a lot in transaction fees. A good alternative that guarantees instant payment with close to zero fees is using a payment service provider (like Fuzey!) that allows you to be paid through open banking.
Payment solutions like Fuzey's Pay with Bank let business owners collect money instantly, and the fees associated with it are close to zero.
With Fuzey’s Pay With Bank, you simply send a message to your customer containing a payment link (on whatever platform you or, even better, your customer, prefers!). Once they click on the link, they are directed to the payment page, where they can pay their invoice immediately through their personal bank’s mobile app without the need to input their credit card details, amount, or your account details (these are already pre-filled in). As simple as that!
This form of payment eliminates middlemen in the payment process, so you get to request your money and receive the payment instantly with close to zero fees. You’ll only pay around 30p for payment, and that’s the only cost you’ll incur.
Compared to old-school bank transfers, with open banking there is no risk of incurring in a delay due to spelling mistakes in the recipients name or account numbers, amount and so on. Moreover, because you initiate the process by sending a link, it’s unlikely you’ll have to chase your customers as much as you would if you just asked them to complete a bank transfer and provide your bank details.
Optimising cashflow and collecting customer payments without delays gives you the confidence that you can pay your employees and suppliers on time at the end of the month.
Book a demo with us to learn more about how Fuzey Pay With Bank works and how it can help you improve your cashflows and increase your profits!