What is a Payment Gateway and Payment Switch?

In today’s economy, freelancing has never been more exciting or rewarding. The rise of social media and e-commerce has resulted in an array of creative ventures. Now, freelancers can do business on various platforms, selling goods and services to a global audience. What’s more, social commerce platforms like Paymes make it easier for entrepreneurs to kickstart their freelance venture.

That said, freelancing comes with its challenges, not least the issue of chasing payments. Whether you’re self-employed or run a business with a small team, this can be incredibly frustrating.

Chances are, you’ve been hit with every excuse in the book. So, how do you know which excuses for late payment are valid and how to respond to ensure a swift resolution?

5 Common excuses for late payment

Here are five of the most common reasons you’ll hear for why a payment is late.

1.Cash flow concerns

One of the most challenging excuses to own up to is also frequently one of the most honest.

Financial difficulties can have various causes. Customers might be experiencing trouble at home or loss within the family, which can inhibit or disrupt cash flow. Or they themselves may be waiting to receive payment.

In any case, many people and businesses are susceptible to cash flow concerns, and unfortunately, these repercussions can be far-reaching.

2.Disputes over quality of goods or services

Perhaps the most elaborate excuse involves customers claiming you’re not providing them with the level of quality they expect. Sometimes they’ll have proof; other times, this excuse is a pretext for getting a discount or avoiding paying altogether.

The key here is that they’ve already completed their browse and buy stage regarding your product. They are interested in what you offer in at least some capacity, so it’s worth trying to figure out whether they genuinely received damaged goods or a sub-par service and how you can resolve this.

3.Administrative issues

This excuse covers any situation where admin problems, whether on your end or the customer’s, interfere with timely payments.

Perhaps an email invoice was never sent, you mistyped crucial payment information, or bank details were entered incorrectly.

While these may be innocent mistakes, it does feed into the next excuse.

4.Miscommunication or misinformation

Perhaps a customer was given the wrong information, or worse, no information regarding how to make a payment. It may be a simple case of miscommunication or assuming your customer had the relevant information to make the payment on time. Or perhaps the customer assumed they could pay at a later date.

To avoid this, it’s crucial that you implement a billing and payment process that’s clear and concise for both parties. Remember, if customers don’t receive their bill, they can’t pay you.

5.Willful non-payment

It’s a harsh and unfortunate truth: some customers simply don’t want to pay.

This is not the same as customers disagreeing with you over what they’re paying for. Rather, this excuse is about customers knowing they owe you money but refusing to pay.

How to manage late payments

Now that you know some of the most common excuses for late payment, what can you do when you’re faced with them?

The following tips will guide you toward managing late payments effectively so customers don’t leave you hanging. They’ll also help you maintain a healthy relationship with your customer base.

Set clear payment terms

In business, one of the best ways to avoid miscommunication is to be precise and clear so customers aren’t left with questions about your products or services. The same goes for payment terms.

Naturally, your employees will clearly understand when and how they are paid their monthly salary. You should have the same clarity and control over your incoming payments.

Explicitly lay out your payment process with customers and integrate this into automated services. Accounting payroll software is an excellent tool to help you control your business finances, allowing you to track invoices and overdue payments, set up recurring invoices, and create payslips all in one place. You’ll also be able to customize your invoices to include your payment terms, so it is very clear what they are.

Inform customers of consequences

It would be great to think that having clear terms and an efficient payment process means you’ll always get paid on time. However, the truth is there will always be customers who miss payment deadlines.

With that in mind, always be clear and objective about the consequences of delayed payments. When issuing an invoice, state the payment deadline and mention the course of action if payment is not received on time. This could mean contacting a debt collection agency or issuing a late payment fee.

It tells customers what to expect and gives them a chance to avoid those consequences.

Stay professional

Feeling frustrated or angry when customers don’t pay on time is understandable. However, the way you deal with late payments is a reflection of your company. After all, you never know whether an excuse is a genuine error, so you don’t want to assume the worst of customers and lose their business.

You can assume the best intentions while still standing your ground. A quick ‘I appreciate that this was a no-fault error and would still require payment by [date]’ message can do the trick.

Follow up regularly

A huge part of business success is implementing tools and processes that streamline workflows. You may already have implemented HR management software, which can help you manage employee expenses, track staff performance, and seamlessly onboard new employees.

Similarly, digital solutions can be hugely beneficial when chasing payments. Designated software can be used to issue automated reminders, follow-up messages, and personalized confirmation emails that act as proof of payment.

On top of ensuring a quicker, more seamless resolution to the situation, this lets you apply a personal touch and prove to customers that you care about their business.

Be flexible

Not every solution is suitable for every customer. For that reason, it’s best to stay flexible by suggesting alternatives on your payment page.

For example, you can offer a customer the option to pay half of the agreed sum upfront and the other half after they receive a product or service. You might also offer payment in installments or work on consignment.

Provide different methods of payment to make it as easy as possible for your customers. For example using the Paymes social commerce platform payment can be made via a link, through the store, or even via a QR code.

This shows that you’re willing to compromise and can help build trust between you and your customers.

Final thoughts

Late payments can result in significant costs for your business. However, it’s essential to act professionally when dealing with excuses for late payment. Be proactive: set clear payment guidelines and ensure customers can pay for services quickly and easily. Try to identify the genuine reason for the late payment, be polite but firm when following up, and always work with your customer to ensure a smooth resolution.

Bio:

Sage is the global market leader for technology that exists to knock down barriers so everyone can thrive. Millions of small and mid-sized businesses, our partners, and accountants trust our finance, HR, and payroll software to make work and money flow. We digitise business processes, strengthening relationships between SMBs and customers, suppliers, employees, banks, and governments. Knocking down barriers also means we use our time, technology, and experience to support digital inequality, economic inequality, and the climate crisis.

Social commerce is an important and innovative development in the field of digital marketing. While not entirely new, it has had a major resurgence in recent years, especially among retailers. Social commerce can significantly speed up companies’ integration into the physical business channel and enhance their brand exposure.

Social commerce is the integration of social networking into the shopping process. It improves your SEO by creating new content that drives additional traffic to your site, builds your brand presence on social media, and increases customer loyalty. This trend indicates that social network users are more likely to purchase and use products as they become aware of them while using their favorite networks. To boost your revenue and profit from social commerce, you have to have a sound knowledge of your target audience, understand their feelings and behavior patterns on different networks, and always provide them with the best user experience.

5 Most Powerful Social Commerce Tactics to Improve Your SEO

1. Master social search optimization

With many consumers now engaging directly with social networks to do their shopping, brands that want to win in this space must master the basics of social search optimization. In order to succeed, you have to do more than just send out a series of tweets, maintain a Facebook page, upload stunning images on Instagram, or write a blog post once in a while. A solid and consistent SEO strategy can help you reach your specific target market – not only boosting your brand but driving direct traffic back to your website, too.

First, consider your goals for each channel, including what keywords you will use and how social media fits into your overall strategy. To succeed on social media, brands need to invest time into creating personalized, relevant content and deliver an outstanding customer experience from the moment their customers touch social network channels. You need to establish clear pathways within your social profiles and make sure everything is easy to navigate. It is also important to have a clear, compelling description of what you can offer on your business page that is written in a way that inspires shareability with your target audience.

Moreover, by using hashtags correctly, you’ll make sure that when your target market is researching products, they come across yours. And don’t forget to keep your geo-data up to date – on both your profile and posts. A local business may think the right keywords are being used, and the website is showing up in local search engine results. Still, it may be losing local leads. It could be due to an incorrect address listed on the website. Make sure your location is available on Google Maps or other local service providers, and get your web address listed correctly in search engines.

2. Invest in social checkout

The reality is that the cumbersome nature of purchasing through traditional methods has limited the growth of eCommerce. This blunted growth is due to shoppers preferring a convenient buying process, which allows them to purchase items in just a few clicks. You can grab the attention of your customers on popular online media channels like Instagram by allowing them to purchase directly from your social media. The ability to shop on social media brings customers as close as possible to the checkout process, which makes them more likely to complete their purchases.

Although this selling model lets customers complete purchases without leaving the social media app, they still have to visit the site for checkout. For example, Facebook and Twitter don’t have a “Buy Now” button that automatically charges users, so they have to click on a link to continue the process. For sellers, this means that one or two extra clicks are needed to secure conversions.

As a site owner, you want the checkout experience to be a smooth and pleasant one. This means making sure your site is fast and responsive on all devices and that your checkout can handle heavy traffic without error. With the help of SE Ranking, you can score your site in a matter of seconds and get some useful tips on how to enhance your site performance. It will thoroughly assess your website’s technical health, notify you of all issues based on their level of significance and category, as well as check your Core Web Vitals so that you will be able to improve user experience.

3. Create audience-focused and engaging content

With the huge growth and adoption of social networks, many businesses are now thriving and making money off of social sharing. For businesses to improve their chances of success on these platforms, they need to ensure that the content created for their social media marketing campaigns is engaging, relevant, and of high quality. By providing content that is relevant to people’s interests, businesses will attract larger audiences, which will, in turn, increase their chances of seeing strong results in the sales funnel. Doing this requires a natural understanding of what the audience likes. Once you understand how your ideal customers interact, it becomes easier to engage with them, and it will show in conversions for your website.

Sites that create great content are able to build trust with their audience and capture leads. With so many eCommerce sites on the web now, it’s more important than ever to really differentiate yourself with your products, services, and brand experience. Since many people share their shopping experiences on social media, with accurate infographics and fascinating facts, your brand can encourage potential customers to click on your website to find more information or make a purchase.

4. Encourage UGC

UGC is content provided by users, also known as “user-contributed content” or “user-generated content”. UGC generally refers to users uploading their own photos and videos. It could also be text contributions from users, e.g., comments, forums, reviews, etc. When a potential customer sees that others have used, liked, and been happy with your service/product, they have more confidence in making an expensive purchase. So it should come as no surprise that encouraging customers to share their stories (which then also becomes social proof) increases your sales. It’s also a great tool for generating traffic, leads, and even conversions.

Encourage user-generated content by giving your customers the tools to post images of the product they bought from your store, such as a social sharing widget or a photo-sharing website button. This will give people another chance to have people look at your brand and will also allow them to provide you with feedback on your products as well. This way, social proof entices visitors to convert and proves your business’ superiority to convince visitors to convert. Highlighting user-generated content on social media channels also builds credibility, as it helps to establish trust from visitors.

5. Make purchasing easy

Until recently, the customer journey was linear. Now, social commerce has made it possible for users to interact with promotions and products. It is a more convenient option for users and allows social networks to offer a new stream of revenue by serving as a bridge between discovery and purchase. When your visitors can make a purchase in a few clicks versus having to log into their email account or even create a new one together – you will see higher conversions and increase your bottom line.

Paytabs is an easy-to-use and powerful shopping cart addon designed to help you sell digital and physical products. It is designed specifically for small online businesses that need a convenient and secure way to take payments online. Paytabs enables you to start processing payments instantly, with no credit card merchant account required. With it, anyone can process in-person credit card payments without any special software or hardware.

Conclusion

The world, along with the Internet, has evolved since the time of wide open spaces. Competing in online markets is more challenging than ever before. Today, there are millions of websites on search engines and social media platforms, all vying for attention. Social commerce applies the principles and best practices of social media to traditional marketing efforts to drive awareness and increase sales. When planning a social commerce strategy, the first thing to consider is where you want to sell your products. You need to choose networks where your target audience spends its time and focus on adding value there through promotions, tailored content, and personal engagement. Social commerce allows you to reach out to your existing and prospective customers, increasing brand awareness and driving sales leads.

Conrad
Conrad is a professional blogger, content maker, and freelance writer. He has written many great and valuable posts on a variety of topics. Conrad loves outdoor activities. He believes the fresh air brings him inspiration for new ideas.