Accepting Different Forms of Payment to Reach More Customers for Your Small Business

I went to get my nails done over the weekend and as I went to the register, I was told there was a 10% cash discount. As a small business owner, I can empathize with the lofty expenses of offering credit cards as a payment option, but as a millennial consumer, I am unforgiving of it.

There is a basic psychological understanding necessary to selling:  Do your customers need or want your product?  Most small businesses are not selling necessities.  Small businesses, especially pop-up/vendor businesses, are usually offering luxuries.  If you’re in the business of luxury, you do not want to put your customers in the position to have to think about their purchase compared to necessities.  If you are forcing a consumer to physically count cash, you are psychologically asking that person to trade off your luxury product versus worrying about groceries.  Even small percentages I’ve seen, such as 3%-5% “cash discounts,” forces your customer to take an extra minute to theorize whether or not your product or service is worth the overall cost.

It’s 2019 – the expanse of digital payment systems is exponential in growth and ease compared to stagnant and untraceable cash.  In this system, the expenses of offering multiple payment systems can add up, but the psychological solution is simple: Raise the prices of your goods to accommodate the rising cost.   The psychology is the same as “free shipping.”  The AOV (Average Order Value) increases when a customer has a threshold for free shipping.  The point is simple:

People spend more money if they can use a credit card or digital payment system (Forbes).

These are some fantastic sources to help you bring your business to the next level by offering multiple payment systems:

  1. SQUARE – Low processing fees (usually around 3%), really easy to set-up, free online marketplace, and super easy point-of-sale.  Use this referral link to get FREE PROCESSING for up to $1000 of sales!
  2. SHOPIFY – Low processing fees (ranges between 2%-3%, depending on level), easy to set-up, beautiful website (see my Scents the Moment store as an example), unmatched customer service, and awesome app for point-of-sale. Use this referral link to get a FREE month of service!
  3. BIG COMMERCE – Low processing fees (ranges around 3% and under), easy to set-up, lots of app integration on gorgeous websites, and great customer service. Use this referral link to get a FREE month of service!
  4. AFTERPAY – Afterpay is higher on the processing fees at 6%, but it allows your customers to buy now and pay later, with all of the liability falling on Afterpay to collect payments.
  5. VENMO – This is SO easy to use and there are literally NO charges for bank-to-bank transfers (so it’s as good as cash) and only minimal charges on the customer’s end if they want to link it to their card.
  6. APPLE PAY – Super easy for anyone who has an iTunes account and relatively minimal processing fees.
  7. GOOGLE PAY – Easy to set up AND free for both the business and customers!

Remember that your Millennial and Gen Z markets are hardly ever carrying cash around with them. Remember that a customer’s average order/purchase value increases significantly with the option of digital payment.  Bring your business into the market of today by making it as easy as possible for your customers to shop with you.

Copy of Kristen Fusaro-Pizzo


Published by Scents the Moment

Scents the Moment handcrafts artisan, vegan, and cruelty-free skincare, bath products, and soy candles. We believe in natural and sustainable ingredients with transparent labeling. We are certified cruelty-free by Leaping Bunny and PETA, and we are dedicated to animals; a portion of all sales are donated to Staten Island Hope Animal Rescue.

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