Handling Payments and Payouts (Cash, Check, Electronic)

Accepting payments and paying consignors doesn't need to be complicated. Learn the safest, simplest ways to handle cash, credit, checks, and digital payouts and avoid the common mistakes that hurt small shops.

Accepting Payments From Shoppers: Your Options

  • Cash: Always accepted, but keep a locking cash drawer and count/change ready.
  • Credit & Debit Cards: A must for modern shops. Get a low-fee terminal or reader from your processor, or use a system that syncs with your shop software for easier reports.
  • Contactless & Digital Payments: Apple Pay, Google Pay, and contactless cards are increasingly popular and easy to add with most card terminals.
  • Checks: Accept from shoppers only if you trust your local market bounce risk is real and banks may charge fees for returned checks.

Paying Consignors: Easy and Clear Options

  • Check: Most common for consignors easy to track, safe to store, and can be mailed or picked up.
  • Cash: Fast and simple for small payouts (or when you have cash on hand), but always record the payment in your books with a signed form or receipt.
  • Store Credit: Many shops offer this as a bonus. It encourages consignors to buy from you while skipping cash tracking.
  • Electronic Payouts: Tools like PayPal, Venmo, or direct deposit (bank transfer) are possible, but check for fees and confirm every account before paying out. Always get digital or paper confirmation.

How to Track and Record Payments & Payouts

  • Use point-of-sale or consignment software to log every sale, method, and payout to avoid lost profits or duplicate payments.
  • If handling cash, count and record your “drawer” at open and close.
  • Issue a receipt or payout slip for every consignor signed if paid cash.
  • Reconcile sales reports to deposits (bank and processor) weekly for accuracy.

Common Mistakes and How to Avoid Them

  • Forgetting to enter a payout: risks double-paying or missing payouts to consignors.
  • Letting large sums accumulate in the cash drawer overnight always deposit or lock up at day’s end.
  • Not recording the payment method critical for tracking processor fees, bounced checks, or tax reporting.
  • Disorganized records use consistent slips/forms for every payout and regular reporting in your software or spreadsheet.

FAQ: Payment and Payout Methods for Shops

Should I require ID for large cash payments or payouts?

Yes, for safety and tax purposes, always request ID for cash payouts above $100 or anytime you don’t know the consignor personally. Log ID type and signature for your records.

How can I encourage more shoppers to pay by card?

Make card payment visible and easy. Display “Cards Accepted” stickers and keep your reader ready by the register. Many shoppers will use cards if they see it’s welcomed.

What if a payout is lost, bounced, or not completed?

Keep records! If mail is slow, resend after a waiting period. For bounced checks, contact the consignor and resolve directly. Digital payments need double-checks for correct account info before sending.

Can I pay consignors with gift cards or store credit only?

Yes, but only if this is clearly stated in your consignor agreement. Many offer a higher percent for store credit compared to cash payout as an incentive.

Quick Reference Checklist

  • Post accepted payment types at your register and on your website
  • Keep check/cash and electronic payout records secure and organized
  • Reconcile all sales and deposits weekly
  • Use consignment software to automate sales and payout tracking

Next Steps and Suggestions

  • Review your local banking/processor fees and update terms yearly
  • Offer payout method choices and get consignor preference on file
  • Read bookkeeping basics for more payout log tips

Best Consignment Shop Software – Trusted Since 2002

One-time payment, lifetime tracking, and no required support prepayments mean more money in your pocket. Best Consignment Shop Software makes handling every payment and payout fast, accurate, and easy. Track cash, card, check, or digital payouts for each consignor, see reports instantly, and manage every record in one place. Since 2002, BCSS has helped hundreds of shops stay organized, confident, and secure.

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