1. Review the different payment methods

No one type of payment is best – it will depend on the needs of your business. Make sure you understand how the different methods work.

2. Consider your customers

When choosing payment methods, you need to think about your customers:

  • Customer preferences – choosing a payment method that your customers prefer will make them more likely to pay on time. The most common payment method is through electronic credit and debit cards. Use of Paywave and other tap-and-go accounts has grown quickly. Most in-store credit card transactions are now contactless.
  • Privacy of payments – some payment methods are more private than others. For example, credit cards automatically keep a record of the transactions. Some customers might prefer to pay cash for certain goods and services, such as medication, for privacy reasons.

3. Make sure it’s reliable

Depending on where your business is, reliance on electricity or telecommunications can be an important factor to consider.

For example, using EFTPOS will require electricity and an internet connection or mobile phone network. This payment method will be unavailable if these systems go down.

4. Check the costs

Some of the costs to consider when you’re choosing your payment methods include:

  • Service fees – for example, EFTPOS and credit card providers often charge service fees.
  • Transaction costs – the bank may charge a cost for each transaction.

5. Evaluate the risks

Think about the risks of different payment methods. For example, cash has a higher risk of theft because it doesn’t go directly into your bank account. There's also more risk of mistakes with payments.

Consider the risks associated with digital currencies.

Learn more about managing risks.

Learn about electronic payment systems.

Read next

Find out more about payment terms.

Learn more about invoicing.