Cashflow killers: The payment mistakes you don't see coming

Ange Dove (00:01)
Okay, welcome to You’re the Boss podcast show. And today I am talking to Joseph Zahaitis. He’s a 30-year payments industry veteran, consultant, and educator who helps businesses finally understand and take control of the way money moves through their company—which is very important.

He’s the founder of Zahaitis Consulting and The Payment Process, where he teaches merchants, operators, and executives how to save money on their digital payment model.

So we’re looking at how you take money into your business today. So Joseph, welcome to the show.

Joseph Zahaitis (00:42)
Thank you for having me on the show. I appreciate being here very much.

Ange Dove (00:44)
Yeah, welcome. Okay, so just tell me a little bit more about what it is that you do, and why we’re talking about payments today—and why it’s so important that people really give a good deal of thought to how they set up payments for their business.

Joseph Zahaitis (01:01)
When I started in the payments industry—as you mentioned, quite a while ago—we had a lot of different ways people paid. You had cash, checks, and then this thing called credit cards.

Back then, there were only about four interchange types. Today, there are around 260 per major card brand. So we’ve come a long way, and there’s a lot more complexity.

Nowadays, if you look at most businesses—digital, online, small or large—a huge portion of their revenue comes from digital payments. In fact, for many businesses, 80–95% of their revenue is derived from credit card or digital payment models.

That creates opportunity—but also risk. Without it, you’re not really in business.

Ange Dove (02:23)
Yeah.

Joseph Zahaitis (02:23)
From a consultancy perspective, what I do is help with both cost containment and revenue generation. I look at what tools you’re using—not to sell you a processor—but to make sure you’re getting the best value and maximizing your revenue within your market.

Ange Dove (03:00)
I think one of the things we talked about before is knowing your market. Different markets use different payment methods, and people don’t always use traditional credit cards anymore. So talk to me about that.

Joseph Zahaitis (03:29)
A great example is the Netherlands. If you’re not accepting iDEAL there, you’re missing out on about 90% of purchasing power.

In the U.S., we rely on Visa, Mastercard, American Express, and Discover. But outside the U.S., people often don’t buy on credit. In Europe, for example, people prefer debit-based systems.

So if you only accept credit cards, you’re limiting your reach.

Ange Dove (05:02)
Yeah, and they’ll just go somewhere else. I’ve done that myself—if I can’t pay the way I want, I’ll switch providers.

Joseph Zahaitis (05:37)
Exactly. That’s why localization matters—currency, payment type, even pricing clarity.

Ange Dove (06:46)
So you’ve got to know where you’re selling, how people spend, and provide the payment methods they prefer.

Joseph Zahaitis (06:58)
Exactly. Especially with cross-border selling, it becomes critical.

Ange Dove (08:28)
So for a small business wanting to sell internationally—like coaches or authors—what should they consider when choosing payment systems?

Joseph Zahaitis (09:07)
Start with: Where do you want to sell?

Don’t try to be everywhere. There are over 150 alternative payment methods globally. You can’t support all of them.

Pick a market—say the UK—then adapt your payment setup for that region. The worst mistake is trying to be everything to everyone.

Ange Dove (10:40)
That’s the same in marketing—you need a niche.

Joseph Zahaitis (11:27)
Exactly. And when it comes to currency, ideally you should accept local currency—but that introduces complexity like tax structures and legal entities.

Ange Dove (13:10)
So for small businesses, it’s better to keep it simple?

Joseph Zahaitis (13:26)
Yes. Start with USD if needed, but localize pricing and language so customers understand the value.

Ange Dove (14:20)
And taxes are becoming more of a factor now too.

Joseph Zahaitis (14:46)
Absolutely. Every government wants their share.

Ange Dove (16:48)
What about payment platforms? I’ve heard stories of businesses getting shut down when they scale.

Joseph Zahaitis (17:16)
Yes—and it happens. Platforms like Stripe or Square are great for small volume. But when you scale, you can get flagged, accounts frozen, and funds held.

That’s why you need a plan B.

Ange Dove (21:38)
We always assume credit cards are the easiest—but there are risks.

Joseph Zahaitis (21:48)
Exactly. Credit cards also allow chargebacks up to six months later. That can seriously impact high-ticket businesses.

Ange Dove (24:47)
In Singapore, we have phone-number-based payments linked to bank accounts. It’s instant.

Joseph Zahaitis (24:59)
That’s similar to Zelle in the U.S. It’s essentially digital cash—peer-to-peer.

Ange Dove (29:15)
Do you think that’s the future?

Joseph Zahaitis (29:22)
Yes—true digital, peer-to-peer payments. Like handing someone cash, but digitally.

Ange Dove (31:16)
So the key is having backup systems in place.

Joseph Zahaitis (31:34)
Exactly. Don’t rely on a single provider.

Ange Dove (34:03)
So there’s a lot to consider when taking payments.

Joseph Zahaitis (34:20)
Yes—and you need to align payment methods with your business model and customer preferences.

Ange Dove (35:53)
That’s such a valuable perspective. So where can people find you?

Joseph Zahaitis (36:06)
You can visit zahaitis.com—Z-A-H-A-I-T-I-S dot com. Reach out anytime, even just for a conversation.

Ange Dove (36:40)
Amazing. Thank you so much.

Joseph Zahaitis (36:43)
Thank you for having me.

Ange Dove (36:45)
You’re welcome.