Why you should never pay... for getting paid

Facing these ones can be an important part of the statement of profit and loss. Even for e-commerces in which it’s possible to cut or remove a lot of these costs in comparison to a traditional shop, payments’ commissions are always there. It seems that we take this for granted, but we should ask ourselves some questions: 

Is it fair that they charge us for managing our money?

How do payment system companies earn money?

Are there alternative ways to reduce or even eliminate these costs?

Before answering these questions, and regarding the “new reality” we live in due to the coronavirus crisis, let us delve into how businesses worked before, and how they do now. If there is some silver lining to this crisis, it’s that it is changing for the better how we make payments and how the everyday life of a business develops. It doesn’t matter if you own a small store, a coffee shop, you’re a lawyer, a craftsman or an event's organizer, this is for everyone:

• Before covid: there were large infrastructures to be maintained, complex electronic systems installed on computers, paperwork, bureaucracy, days of waiting for simple operations, etc. Many natural resources were consumed and a great deal of time wasted.
• The new reality: everything is now available online; fast and easy. It’s about what the customer wants and what you need. No need for cash, physical contact and, of course, consuming unnecessary resources. Customers don’t just value ​​what you sell. They value ​​how you sell it, how you do it and how you behave with others.

It is a fact that with the new situation we’re living, cash payments are increasingly rarer, even for small amounts of money. Thus, any business or professional must have alternative payment methods. These alternative methods should be available for anyone who has a business or would like to start one. For that reason, at Trisbee we believe that everyone should have access to cashless payments, for free and without commissions.

With this in mind, no intermediary (bank or other companies) should charge you for your customers’ payments of products or services you’re selling. Therefore, let us proceed and answer the questions posed earlier:

• Is it fair that they charge us for managing our money? Absolutely not. If another entity has my money, then it has more resources by having more money with which to do business. For example, the bank uses the money in your bank account to hand loans and then collects interest for those loans. Without your money, or anyone else’s in their bank accounts, the banks wouldn't be able to do this. Let me explain, this is as if I’d lend money to a friend and then I’d have to pay my friend a fixed amount every month for this fact. Insane, isn't it?

• How do these entities earn money? So the question is, if a platform or company that offers me financial services or a payment gateway does not charge commissions, how does it make money? Well, these companies can offer complementary services from which they profit: lines of credit, advances, loans, insurance, advertising services, etc. Besides, these services should add value to your business and with fair commissions. Do not forget that you are the power of the economy, if your business is going well, all these entities will grow because of you. So they have to help you grow.

• Are there alternatives to reduce or eliminate these costs?

Yes, there are alternatives. The new way of doing business, seeing the world and being competitive in today's markets demands it. And not only this, there are entrepreneurs who have started their business with a vision of helping others to flourish. And there are people like these in all sectors, and of course also in the financial sector, and more specifically in the bank and payments’ platforms.

We are witnessing a historic moment. A moment full of changes at all levels: political, social and economic, where our customs and the way of doing things have changed. And not only that, these changes will keep happening, faster at every moment. We have to transform our business in order to have that ability to change and be fast. Therefore, our suppliers and the tools we use will have to be on the same page.

Therefore, my advice is to make it easy for your customers, add value, make everything simple to use, fast and barrier-free payment methods (and of course, don’t pay for that). We no longer need cash (even to pay € 1 for a coffee). Because this is how the world works today. And you as an entrepreneur, businessman or freelancer have to demand a free and reliable payment method that makes your life easier. Don't forget it, it's your right.