Your ability to take payments and to offer the most convenient payment options to your customers has to be seen as a vital component in your business setup. That’s why it is so important to take the time and effort to select a payment processor that is just right for your business and payment processing requirements.
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There are a number of key steps to follow when deciding who to choose, such as reading payment processor reviews to get an idea of who has a good reputation for reliability and quality of service.
That is just one of the essential considerations to take into account when choosing a payment processor for your business.
A good starting point would be to have a clear understanding of the role of a payment processor and how it fits into your business model. In essence, payment processing describes a series of steps that take place after a customer has used a debit or credit card to make a payment to your business. You are using a payment processor to verify and authorize the payment transaction, check for any potential fraud in order to help you avoid a chargeback situation, and then send the funds to your account within an agreed timespan.
Although the process tends to follow basic industry standards that are adhered to by most payment processors, the levels of service and options available to your business can vary according to who you sign up with. With that in mind, here’s some key considerations to think about when choosing a payment processor for your business.
Check which payments are supported
You need to confirm whether your chosen payment processor will accept all major credit and debit cards. It will also be helpful to be able to accept digital wallets and as many other recognized payment types as possible.
The more payment options you can offer your customers the better it will be for delivering excellent customer service. It will also encourage them to use you more often when it’s so easy to pay,
Confirm the fee and pricing structure
Fees and pricing structures can be presented in all sorts of different ways by the company’s offering them. Make sure you clarify what each transaction fee will be, whether there are any monthly fees or other charges, and if you will be asked to pay a setup fee.
Customer support is an important consideration
Read existing customer reviews to get a clear idea of how good the level of customer support is. If there is any issue or you need to ask a question you want to know that there will be someone you can speak to that can help.
Check how this customer support is offered. It could be via phone, email, or live chat, or a combination of these options.
Ask about PCI compliance
You need to ask for assurances that your chosen payment processor uses encryption, tokenisation, and various other security protocols that are all designed to protect customer data and form the bedrock of PCI compliance.
Easy integration is another key requirement
One of the essential aspects that will likely influence your decision as to who to choose as your payment processor is how easily their system will integrate with your existing setup.
Ideally, you want a system that integrates smoothly and easily into your current POS system and aligns with your E-Commerce platform and other business systems with the minimum of fuss.
Settlement speed can be vital for cash flow
Another important consideration is knowing how long it will take for cleared funds to reach your bank account.
Ask how long the settlement period for each transaction will be. Fast settlement is often critical to your cash flow. You need to be aware that although there are certain industry standards, not all payment processors operate under the same timelines. It is never a good idea to assume that the settlement timeline is the same, so be sure to check.
Ask about the reporting process
Ideally, what you are looking for is a payment processor that offers both a user-friendly interface and a comprehensive reporting system.
It can make such a big difference to your administrative tasks when it’s easy to monitor all of your payment transactions and access a range of comprehensive reports. When you have a range of informative data at your disposal it can also deliver some valuable insights into your sales data. Being able to spot trends and patterns can deliver some useful planning and marketing advantages.
Handling disputes and chargebacks
As frustrating and time-consuming as they are, disputes and chargebacks are an aspect of taking card payments that you simply can’t avoid.
What you want to be able to do is manage these tasks with the least amount of hassle. With that in mind, you will want to choose a payment processor who is known for providing the right amount of support and guidance throughout the process.
Scalability is important
If you have plans to grow your business and increase transaction volumes you will want to know that your chosen payment processor has the capacity to grow with you.
It is essential to confirm that your provider is able to support your business’s expansion plans. That doesn’t just mean being able to handle an increased volume of transactions, it may also need to encompass the ability to support multiple currencies and international currencies, you extend your reach in search of more customers.
Do your research
Last but not least, it pays to do some research into the reputation of the payment processor you are considering using.
Reading customer reviews about their levels of customer support and reliability can be a useful guide as to what to expect when you start working with them.
If you work your way through these key points it will help you to identify a payment processor that ticks all the right boxes in terms of your needs and preferences. When you think about the important role they will play in supporting your business activities it’s essential to get your selection process right.
