Think Payments First: Part II

Planning payments first

At the beginning of building your business, you’re going to be making a lot of plans. It’s easy to get swept up with exciting details.

While you’re thinking about those details, Here’s our PSA:

Think payments first, then think about the rest.

Your initial business plan and market research have some heavy lifting to do. In these initial phases of your business, there are things to consider that can have far-reaching repercussions to one of the most fundamental areas of your new business. Thinking about payments first lets your new business be flexible and smarter with one of its most essential aspects: money.

Welcome to the second part in our 5 part series, all about thinking payment first:

Building your business plan

Thinking payments first, what does this mean for your business overall? There are a few things you may or may not be aware of that directly relate to your business and payments.

How is your business going to be categorized?

How your business is categorized will determine payment product offerings and rates. It’s used as a benchmark to assess several factors. Here’s just a few:

  • Will your business process refunds?
  • Will you have lost, stolen, broken, or returned products?
  • Will you have a money-back guarantee or refund process?
  • Will your customers dispute your service?
  • How well is your type of business doing in today’s market?
  • What regulations will your business be subject to?
  • How much risk is there?

Risky business.

If your industry is rated high risk, you will likely have to pay more per transaction and/or may need to put down a significant security deposit to accept credit card payments.

Industries, like travel, where you sell something long before you get the product or service, can be considered high risk.

Some industries, like Cannabis and CBD, or 24/7 tech support, can be prohibited entirely from accepting credit card payments.

And now, here’s one of the tough conversations we have sometimes. Risk is a moving target. It’s different at any time and from institution to institution. Make sure you leave yourself time to work through any bumps along the way to processing payments.

How fast do your suppliers need money?

Some payment methods settle faster than others. If you are running on tight margins or timing is critical to pay suppliers, maybe it makes sense to accept credit card payments from day one. Other options include leveraging your credit card like using our Amex Corporate Services, which can allow you a bit more breathing room.

When the money hits your bank account it’s important to be aware of refunds & returns. For your customers, you need to be aware that funds can be pulled back from your account up to 90 days from the initial deposit if there’s a dispute.

If everyone needs money fast – be cautious. Account for that risk in your calculations.

Our society has just gone through an extreme situation and is still recovering from what happens when you ignore that risk. Certain industries with tight margins, like events and hospitality, crumbled when everyone took their right to ask for their money back.

More questions?

It takes practice to think payments first. The Peloton team has been putting payments first for more than a decade. To find out how our Peloton Portal and our team can help, visit