 And once again, the four components that are needed to run your food operations would be business operations, ordering process, collecting payment, and then fulfillment in order. Right now we're in the collection phase. Now, what is payment processing is basically the different ways for you to collect payment from your customers on Instagram. Why is it important? It is because a proper payment system allows you to track how your business is doing, allows you to see what is going on in your business. And it also allows you to be able to keep proper bookkeeping practice. Now, this is a huge, huge lesson and a huge, huge thing because for me, I made a huge mistake when running my first business. It was a $200,000 mistake, $200,000 mistake guys. The CRA equivalent to an IRS, basically the tax department from the government basically came down on us because we're running our event business, which we're collecting cash up front. And because we didn't have proper bookkeeping practice, we didn't have the records to showcase how much money we're actually making. And we just submitted all the tax receipts and everything to the government. They're just saying that, hey, you know what Wilson, we think that you are making X amount more than what you've declared. And thus you're missing a bunch of taxes that you haven't paid yet. And this is how much you owe us. It ended up being a two year lawsuit of back and forth and appeal. And I ended up paying a lot of money to the government because we didn't have proper bookkeeping practice. And obviously for you to run this food business, it is not going to be as much that you can be paying because the scale is much less. But nonetheless, having proper bookkeeping is also super crucial if you want to be able to build a proper business. Next up, the more options that you provide your customers, the less likely they are to go with someone else. So for example, if someone only has cash, they don't have credit cards. And if you don't give them a option to collect cash, the most likely they're not going to purchase from you. And vice versa, if someone just uses credit card all the time and you're like, you know what, I only accept cash, that is not a pleasant experience for your customer. And that's the reason why you need to see the different options available for you. So the three payment processing options. First up, cash makes up e-transfer and third point of sale. What is point of sale? Basically, you're just collecting, you know what? We'll dive right into it very soon. First up, cash, the pros of collecting cash for your Instagram food business is the fact that there are no fees. You collect five dollars, you keep the five dollars. There's no set up required. But the cons of that is that there's no commitment from your customers because they can cancel any time. They can ghost you anytime. Basically, when people order from you, they'll be like, hey, you know what? I'll pay you when I receive the order. Well, when you go to their home, let's say if they don't pick up, let's say if they ghost you, then you have no guarantee that your order is there, that people are going to be paying for it because they can simply just change their mind last second, ghost you. And there are people out there that is like that, that they just ignore you and you're going to end up spending a lot of time and wasted orders on this person. No commitment, messy bookkeeping. If you're collecting cash and if you don't log it down properly, then it becomes a hassle when it comes to bookkeeping. Much more time consuming and on top of that, you might require change and handling of change is not something that everyone likes to do. Next up, e-transfer. The pros of that is that when you receive the e-transfer, you have no fees and it only requires an email or a phone number for you to receive your payments. Now, once again, the con of that is that it requires extra work to verify if the customer has paid or not. You need to go into your email. You need to reconcile whether it is the same person that paid for it. And that requires extra work. Once again, it is also messier bookkeeping because as you come in, you can't really verify which customers are you linking it up with. And thus requires more time for you to match things up, more time consuming as well. Next up is point of sales. That's what I was talking about. Point of sales is basically like a cash register. So I point of sale softwares out there would be Stripe, Square or just any e-commerce platform. So see Stripe or Square as a point of sale, as a cash register. So these are the places that help you accept Visa, MasterCard or any type of credit cards, except much more payment options. It is much easier to manage because everything is in one place and it also directly deposits the funds into your bank account. A lot less time consuming than if you were doing either e-transfer or cash because automatically if they don't pay the process or the order doesn't go through. Now, the cons of that is that usually, typically speaking, taking credit card fees would take 3% fees from these point of sale merchants. There is a setup required. Usually that doesn't take too long, but the biggest con is that there is a fee involved. Nonetheless, I highly recommend you to go with a point of sales because it is just much easier to to manage. And on top of that, if you're having multiple of orders every single day, having a point of sale is just so much easier. Now, as a pro tip for you guys, if you're using Shopify, there is no need for you to sign up for another point of sales because Shopify allows you to collect credit card payments, PayPal, Google Pay and whatnot. So just see Shopify as a digital shop, a storefront that has cash registered in there as well. And if you're not using Shopify, you're using other types of e-commerce platforms, then they might not have the ability to collect online payment. Then you may need to start setting up your own point of sale systems and your own cash register to collect the online payment. So ultimately, if you're confused, think of Shopify as a digital storefront that has a cash register that allows you to take payment already. So you don't need to sign up additional services to collect visa payment or MasterCard payments. Now it is your turn. Decide which payment option makes the most sense for your business and your own schedule. Thank you so much for watching. I'll see you guys in the next lesson.