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Payment solutions for small businesses

Businesses need to provide easy ways for their customers to pay them. Here, we look at the options, and pros and cons of cash and digital payment methods.

3 minute read

When it comes to business, one of the most important parts is being paid by your customers for the goods or services you provide. These days, there are a lot of payments options, from cash to credit and debit cards, payWave to bank transfers and apps, with more new options being developed.

With so many choices, it’s important you make it easy for both your customers to pay you, and for your business to receive those payments.

Common payment options

Many small businesses start with cash, as it’s one of the most basic ways to pay. However, it’s important to remember that cash does come with a bit of admin, like balancing the till and depositing money at the bank. It also doesn’t work well when you’re dealing with large payments.

EFTPOS (Electronic Funds Transfer at Point of Sale) is also a familiar and common option. Along with credit cards, it’s been the dominant form of payment in New Zealand since 1997. It provides a seamless, secure way to transfer money from your customers’ debit cards to your business account using a hand-held terminal.

Ways to accept digital payments

The rise of digital has seen contactless methods become increasingly popular – to the point customers are surprised when they can’t use their payWave card or similar. Consumers like the safety credit cards offer to buy larger items, though there may be transactional and service fees you will need to consider if choosing this option.

BNZ’s payment solutions like PayClip – a portable terminal that lets you accept card payments anywhere – provides additional ways to accept payments in-store or on the go. Businesses that use Android devices can also benefit from app-based solutions like BNZ Pay that lets you take contactless payments on your Android phone or tablet without needing a terminal.

There are also ‘Buy now, pay later/in instalments’ options, which require you to sign up to the service to be able to offer them to your customers. Another option may be the emerging open banking API technology, letting you receive payments securely and directly from your customers' bank accounts through integration with API-connected payment parties.

If you’re running a digital-only store, you’ll only want to take payments online. There are several options available, one of which is BigCommerce which provides you the option to build a website and run your online store, seamlessly linking it to BNZ through a secure payment gateway.

With roughly 90% of households having access to a smartphone or the internet, accepting digital payments can open your business up to a number of new demographics.

Which is safer – cash or digital?

Both options have their pros and cons. While cash may seem easier, it’s generally not the preferred option for consumers, and has risks. Being stored on site provides opportunities for it to be stolen, and transporting large amounts of cash to the bank can also be a security concern. It could also increase your business insurance premiums.

And while digital payments also come with risk, there are ways to help mitigate it. By using options offered by market-leading providers, you’ll be protected by their robust security measures and assurances.

Here at BNZ, we have a rigorous due diligence process. Only once a potential payment option has passed all our security checks can it be offered to our business customers.

If you’re dealing with a subscription-based service or expecting a constant flow of loyal customers, maintaining a Payment Card Industry (PCI)-compliant customer database and recording basic details (not including card details) will help you feel secure when processing payments. Plus, if you’re running an e-commerce website, using 3D Secure gives you an added layer of security that makes online transactions safer for both parties.

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BNZ Pay and BNZ PayClip are subject to credit criteria, merchant terms and conditions and fees. For BNZ PayClip, standard PayClip terms and conditions also apply.

References to third party websites are provided for your convenience only. BNZ accepts no responsibility for the availability or content of such websites.

This article is solely for information purposes and is not intended to be advice with respect to any matter discussed in it. If you need help, please contact BNZ or your professional adviser. Neither BNZ nor any person involved in the material accepts any liability for any direct or indirect loss or damage arising out of the use of, or reliance on, all or any part of the content.