An important time for small businesses is the end of the calendar year. But when customers refuse to pay invoices or back payments, what happens? You might have to call in a collection agency or chase customers down to get the payments that are rightfully yours.
If you have an online store on Shopify, you may meet the major payment challenges. Here are some challenges which are uncovered and what you can do to combat common e-commerce payment challenges.
Late payments are the most prevalent issue.
The small and medium businesses often lack the resources to protect themselves or follow up as diligently as large businesses.
Small businesses see payment challenges not only in the holidays. According to the survey, fraud and chargebacks are also common. Small businesses have to face these payments and accounts receivable challenges all year long.
When asking many businesses, nearly two-thirds of them said that at least 10 percent of consumers don’t adhere to their payment terms. Small businesses seem to be the big boost to the U.S. They encourage innovation, provide the financial independence, and create employment opportunities.
However, the serious burdens for these businesses to be addressed are the late payments and issues around fraud continue.
When following up isn’t enough
The small business owners follow up on late payments more than once. However, that doesn’t always secure the payment. Thus, you need to refine your system. Besides, businesses need to consider the software with integrated payments which can make it simple for clients to pay immediately.
Accepting the ACH, credit cards, or online payments help enterprises get paid faster and more often but there are fees associated with these payment types.
Remember to be clear about payment terms. You need to get clear on details of the deliverable timing and payment timing when taking on a new client or project. That ensures there’s no disputed charge later.