One of the essential factors for a business to consider is how it will get paid. When deciding which payment methods to accept, businesses have many options, such as:
Cash Only
Cash is the most commonly accepted form of payment for a business. The Internal Revenue Service (IRS) requires that you file Form 8300 (PDF, Download Adobe Reader) if your business receives more than $10,000 in cash from one buyer in a single transaction or in two or more related transactions.
The U.S. Small Business Administration (SBA) provides information on accepting cash only.
Credit and Debit Cards
As a popular, convenient, and flexible payment option, credit and debit cards have become increasingly important in business commerce. Before accepting card payments, important factors for merchants to consider include the investment in the necessary equipment to accept credit or debit cards as well as the processing fees for purchase transactions. Keep in mind, limits have been imposed on transaction fees that large debit card issuers can charge to merchants. This means that merchants may pay lower fees for debit card transactions than for credit cards.
Merchants are permitted to place a charge or surcharge on customer purchases made with a credit card, up to 3%, of the total purchase. If a merchant charges a surcharge, it must be clearly disclosed in the store and on its receipts. Merchants may offer a discount to customers who pay with debit cards, cash, or checks. Surcharging is not permitted in CA, CO, CT, FL, KS, MA, ME, NY, OK, and TX. A merchant may set a $10 minimum purchase amount for credit card purchases. However, it cannot charge fees or set minimum purchase amounts on debit card purchases.
The U.S. Small Business Administration (SBA) has more information on accepting card payments.
Checks
In addition to the traditional ways of depositing paper checks, businesses may also scan and deposit a check remotely to their bank account. Businesses can also initiate a one-time debit or recurring debits from a customer's checking account.
Electronic Benefits Transfer
Electronic Benefits Transfer (EBT) is a system that allows a recipient to authorize transfer of their government benefits, such as Supplemental Nutrition Assistance Program or SNAP benefits (formerly known as Food Stamps), from a federal account to a retailer account to purchase goods.
The U.S. Department of Agriculture (USDA), Food and Nutrition Service provides information on accepting SNAP benefits at a retail food store or farmer's market.
Mobile Payments
"Mobile wallets" let consumers make payments using accounts--including traditional debit and credit cards--linked to a mobile device without using the actual plastic card. Before accepting mobile payments, important factors for businesses to consider include the investment in equipment needed to accept mobile payments and other issues such as data security.
The Federal Deposit Insurance Corporation (FDIC) has more information on accepting mobile payments.
