BIGtheme.net http://bigtheme.net/ecommerce/opencart OpenCart Templates
Home / Finance / Payment Challenges and Fixes for Today's Entrepreneurs…

Payment Challenges and Fixes for Today's Entrepreneurs…

You’ve delivered that big new client project. Hooray! Yet before you can pronounce the project truly done, you need to get paid. And the client that had been corresponding with you with great urgency is now saying that the invoice needs to work its way through Accounting.

Related: Why Payment Processors Suspend Their Legitimate-but-High Risk Merchants

What’s more, the approver is on vacation and won’t be back next week. So, the check will be “in the mail.” So, while that will likely happen . . . for now, you need to wait.

Painful. And common, according to new national research highlighting the challenges many entrepreneurs know well when it comes to managing cash and getting paid for their work. The WePay SMB & Money Survey shows that 41 percent of U.S. small businesses surveyed reported having experienced cash-flow challenges, and 16 percent had experienced payment fraud — just in the past year.

What’s more, many entrepreneurs say they’ve dealt with multiple instances of customer payment fraud, with 8 percent of those affected reporting 10 or more instances, and more than half saying their first brush with payment fraud came within two years of starting their business.

More survey findings of note:

  • 25 percent had experienced a chargeback (a fraudulent or disputed transaction that resulted in a financial institution requiring the business to make good on the loss) in the last year
  • 33 percent said they usually get paid immediately (often for goods sold in-person), while the majority said they were left playing a delicate waiting and reminding game to get paid
  • 10 percent had had to chase down a customer payment for 181 days or longer

Related: How to Get Clients to Pay You Upfront

What’s an entrepreneur to do when they’re passionate about what they do and yet don’t want to let payments challenges dull that passion or take a huge amount of time ongoing? Here are five lessons we’ve learned at our company after helping millions of merchants process payments on more than 1,000 online platforms:

1. Align expectations up-front.

When you take on a new client or project, it pays (pun intended) to invest the time getting clear on details of the deliverable’s timing, and payment timing. Going one step further, capture it in an estimate or invoice. The extra effort will go a long way in ensuring there’s no disputed charge later, nor any surprise, like your expecting to be paid immediately upon service delivery while your client is planning to pay later.

2. Dispute unexpected charges.

We’ve come to see many entrepreneurs take the hit and move on. And we appreciate that this may be the path of least resistance on smaller transactions. Yet you can fight and win a chargeback claim. Step one should be to engage your customer directly to clear up any confusion. It may help to remind this person of your return policy, restocking fees and/or terms of service. You can also dispute through the bank, presenting documentation that includes signed contracts or receipts, relevant emails and screenshots of shipment tracking.

3. Open yourself up to additional payment methods.

Many entrepreneurs refuse to accept credit cards or even ACH, given the fees. None of us like added cost. Yet holistically, we’ve come to find that allowing customers to pay with their preferred payment method increases customer conversion.


Source link

About admin

Check Also

6 Ways to Become a Millionaire While Working for Someone Else…

Reader Resource Apply now to be an Entrepreneur 360™ company. Let us tell the world ...

4 Ways to Contain HR Costs Without Impacting the Employee Experience…

Let’s face it: The cost of creating positive employee experiences quickly builds up and is ...

Why This Former White House Aide Thinks People Deserve More From Banks…

Last year, American consumers’ trust in financial services companies hit an all-time low of 8 ...

Leave a Reply

Your email address will not be published. Required fields are marked *