“Buy Now, Pay Later” (BNPL) has exploded in popularity, promising flexibility for shoppers and more sales for merchants. But for small businesses, the reality isn’t always as simple. High transaction fees, delayed payouts, and complex compliance requirements can quickly eat into margins. Plus, when customers default on payments, merchants still bear the risk — and often face chargebacks or disputes.

BNPL can be a useful tool in limited cases, but it’s not always the most transparent or sustainable way to help customers pay.

The Hidden Costs of BNPL

While big retailers may absorb BNPL’s fees, small businesses often can’t. Typical BNPL providers charge 4–6% per transaction — far higher than standard credit card processing rates. That means each “split payment” sale could actually reduce profit.

Even worse, BNPL providers sometimes control customer communication, meaning you may lose valuable data and the direct relationship with your buyer.

Smarter, Simpler Alternatives

If you want to offer flexibility without the confusion, consider merchant services solutions that give you control.

  • Installment or recurring billing: Offer customers structured payment plans directly through your POS or payment gateway — no middleman needed.
  • Dual pricing: Let customers choose — pay one price with cash, another with a card — while keeping your rates transparent and compliant.
  • Integrated invoicing and hosted payment links: Allow easy online payments that sync with your accounting system and maintain your cash flow.

Why Merchant Services Make Sense

Unlike BNPL providers, merchant services providers like Beacon Payments give you full visibility into your transactions, fees, and customer data. You get paid faster, keep your profits, and build lasting customer relationships — all while offering modern payment flexibility.

Final Thoughts

BNPL may grab headlines, but long-term growth comes from clarity, control, and cash flow. For small businesses, that means choosing solutions that put you — not a third party — in charge of how customers pay.

If you’re ready to explore smarter payment options built for transparency, Beacon Payments can help you get started today.