Many businesses have a website or online store but only collect payments via Cash on Delivery. While that changed drastically after demonetization, a cash crunch is not the only reason for you to collect payments online.
Six reasons why your business should collect payments online:
Companies can scale from 100 payments to 50,000 payments with little or no effort on their system. Hence, it is very easy to scale an online payments system as opposed to managing cash which involves hiring more people and installing a monitoring system to prevent theft.
Banks charge a small fee every time cash is deposited over a certain amount in an account. Also, human effort is involved in carrying a large sum of cash to the bank. Hence, you end up spending more over a period of time. You need to factor in duplicate and torn notes which cause is a major issue while accepting cash.
If you accept NEFT, Cheque or Cash, tracing a transaction back to a buyer is very difficult. Also, someone has to manually reconcile the accounts and the buyer cannot avail of the service or product unless the vendor provides him with a credit line.
NEFT transactions can be initiated only between 9 am to 5 pm on a working day. Also, to manage cash you need an employee or person. It is possible to accept online payments anytime and you can serve your customers 24*7.
You need to spend so much time thinking about and managing your payment processes whereas the same time can be used to focus on growing your core business.
More & more buyers now prefer to pay online. Hence it is always good to give customers as many options as possible to buy a product or service. It goes without saying “Customer is King.”