I only accept payment by bank transfer, for several reasons:
- Everyone I work with has a bank account.
- It’s the cheapest method for me to receive money (‘free’ as it’s included in my monthly bank fee, as opposed to 3-5% for some online payment systems).
- Most SMEs already have a system in place to approve/authorise bank payments and stick them in their regular BACS run.
I used to accept cheques as I had a few clients who needed dual-signature authorisation for payments, but eventually the costs of doing so were too high once you factor in my time in going to the bank to pay in the cheque (it’s possible to pay in cheques via an app with some banks, however I struggle to take an acceptable photograph of them).
I don’t take cards because:
- Nearly everyone with a card also has a bank account (in the UK at least).
- I don’t like taking on the risk of fraud or chargebacks.
- The fees are extortionate compared with bank transfers, even though it’s an automated system.
- The number of entities involved in every transaction gets silly (card network, card provider, merchant acquirer etc.)
I’d only offer card or direct debit arrangements if I was offering subscription packages to individuals, because I think there’s still some resistance to bank transfers, and naturally consumers want the payment methods that protect them over the merchant.