What Type of Payment Methods Should My Parking Facility Accept?

Parking Revenue

Feb 5

Posted: February, 5, 2023 10:44 AM ET • 5 min read

Person using phone to pay at parking meter

Customer satisfaction and convenience are the most important factors when implementing your facility’s parking management and technology strategy. One of the ways you, as a facility manager or owner, can achieve this is by offering a variety of payment options that promote flexibility and increases retention.

Below is a breakdown of the various payment methods you can offer at your parking facility and the pros and considerations of each.

1. Cash and Coins

Cash and coins are the most widely accepted payment methods for parking facilities nationwide. The benefit of cash payments for parking is how widely accepted this form of payment is. No high-tech systems are necessary to implement cash as a payment method. Also, it is a great option for certain demographics, such as older individuals and tourists, who tend to pay using cash or coins.

However, this payment type requires secure handling procedures to minimize the risk of theft and ensure smooth operations. Additionally, managing cash can be time-consuming, especially when dealing with a mix of bills and coins. Partnering with a provider that offers secure cash handling solutions can streamline this process and enhance efficiency.

2. Credit and Debit Card

As we move toward a digitalized future, credit and debit cards have emerged as consumers' preferred forms of payment. The secure, fast, and easy-to-use aspects of credit and debit cards create high customer satisfaction and convenience.

While transaction fees are associated with credit and debit card payments, they are often outweighed by the convenience and security they provide. Ensuring your parking facility is compatible with major card networks such as Visa and MasterCard is important. Though rare, occasional technical issues with card payment networks may occur, but having a contingency plan in place can help mitigate potential customer inconvenience. Another factor to note is that businesses accepting credit cards must be PCI-compliant. Compliance requirements vary based on transaction volume, and working with a reliable provider simplifies adherence to these standards.

3. Digital Wallets

Digital wallets have been replacing physical cards for goods and services. They are contactless, secure, and quick to use. With digital wallets like Apple Pay, Google Pay, and Samsung Pay, consumers can use their phones as an alternative way to pay for parking. This type of payment appeals heavily to younger generations and tech-savvy individuals.

To maximize adoption, customers should be encouraged to set up a mobile wallet in advance. In rare cases where a phone is lost or runs out of battery, customers may need an alternative payment option. Providing alternative payment options ensures a seamless experience for all users.

4. Mobile Apps

Utilizing a mobile parking payment app is a great way to streamline payment. It allows customers to easily find and pay for parking. There is no need to use a physical machine; the customer can leave their wallet at home. Mobile parking apps allow users to pay for parking remotely, manage parking permits, pay for EV charging sessions, and even reserve a parking spot ahead of time.

While not all customers may be familiar with mobile apps, providing user friendly instructions and support through posted signage can enhance adoption. Some customers may experience mobile app fatigue due to managing multiple apps, but offering an app-free alternative alongside the app ensures inclusivity and convenience for all customers.

5. Pre-Payment and Reservations

With pre-payment and reservations, customers can guarantee a parking spot and reduce the time searching for parking. This is a great option for parking facilities in busy areas where the demand for reservations is increasing significantly.

To maintain flexibility, facilities can allocate a portion of parking spots for reservations while keeping some available for last-minute customers. Balancing these options ensures convenience for all users while optimizing space utilization.

6. Monthly and Flex Permits

Offering parking permits is a great way to generate steady revenue and offers convenience to those who frequently use your parking facility. A subscription-based payment system is ideal for commuters or residents who park regularly.

Before implementing parking permits, it’s important to have an effective system for managing recurring payments and access control. A well-organized permit system enhances the customer experience and simplifies operational management.

7. RFID and Smartcards

RFID (radio frequency identification) or contactless smartcards are another payment method to consider for your parking facility. Automatic payment processing reduces human error, and RFID and contactless smartcards allow fast entry and exit, which increases customer satisfaction.

While the initial setup costs for RFID and smartcard systems may be higher, the long-term benefits of efficiency and speed often justify the investment. Ensuring that customers receive compatible cards or tags helps facilitate a smooth transition to this advanced payment method.

Keeping up to date with changes in consumer preferences will ensure that your parking facility remains a preferred choice. Offering diverse payment options enhances customer satisfaction, increases retention, and ensures a seamless parking experience for all users.

References

Bruce, C. (2022, March 10). Accepting EMV-certified payments is more important than you think. Parking Industry. https://www.parkingindustry.ca/parking-revenue/accepting-emv-certified-payments-is-more-important-than-you-think?rq=payment+options

Lato, L. (2023, October 10). Setting your parking operation up for Success: Upcoming Financial Compliance Mandates for 2024. Parking Industry. https://www.parkingindustry.ca/parking-revenue/setting-your-parking-operation-up-for-success-upcoming-financial-compliance-mandates-for-2024?rq=payment+options

Sgorlon, A. (2020, September 11). How to meet standard payment options at your facility. Parking Industry. https://www.parkingindustry.ca/parking-revenue/how-to-meet-standard-payment-options-at-your-facility?rq=payment+options

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