Types of payment methods

pax a920 terminals with wood background

There can be many types of payment methods that a merchant may accept. In this blog, we cover the most common and relevant methods which a merchant may experience.

As a merchant, you may see many ways customers pay for the goods you’re offering. Some payments methods are more traditional than others. Cash payments have fallen off most people’s radar since the beginning of the pandemic with most purely using cards only.  However, physical cash is still in circulation despite possible issues of cleanliness of the money. It’s very common at this current time for people to switch to a card-only wallet or use their phone to pay for transactions with a system like Apple Pay.

 

Chip and Pin

Chip and pin card payments have made their way into most people’s lives recently due to the pandemic. Even those who thought they would stick to cash have moved over to devices like the PAX A920. Chip and pin would of course need a terminal that accepts these forms of payments. There are more forms of terminals that accept contactless only. You can find details on our terminals available here. (Downloads section)

Contactless

Contactless payments have stormed their way into the media recently due to the higher contactless limit. It has increased to £100 from £45 which it had been in the past. The rise in the figure was mainly due to the sudden and large increase in contactless payments. This gives customers and merchants more opportunities to purchase and sell higher value items without the worry of chip and pin or cash.

MOTO

MOTO stands for ‘Mail Order/Telephone Order’. This is either when a customer pays through mail or over the phone using a card. These types of payments tend to vary in usage amounts – being one of the quiet forms of payments.

Cash

Cash payments have taken a huge step back in the past couple of years. Through the Covid-19 timeline, cash has been frowned upon with some stores not accepting cash in any form. At the time of writing this piece, in February 2022, cash is now more accepted. In fact, most customers have mainly moved to card payments only.

 

There are a lot of benefits to taking card payments over cash payments, with multiple payment methods available. We’ll cover some here:

  • Reduce queues and increase speed.
  • People spend more on cards than cash. For example, if someone has £10 in cash they can only spend £10 however on a card they may spend more.
  • Increase revenue percentage.
  • Security – less cash the more secure the business is.
  • Time – less trips to the bank and fewer bank charges.
  • Customer retention – If the customer doesn’t have the cash they may not come back or visit again if they need to get cash out for your store.

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