Things to consider before choosing a Payment Processor

Things to consider before choosing a Payment Processor

Payment is a critical phase of any kind of business especially for e-commerce since the internet is reaching the corners and attracting customers that our traditional business platforms couldn’t achieve. However, with the benefits that companies are getting in the field of online payments through the experience of international development and from the broad reach of internet commerce, companies also have to face the very diverse preferences of their customers. Your customer looks for security while he makes an online purchase or through the card. If you, as the owner of a small business, are looking for a new payment processing software, you want something that is user-oriented, provides a variety of function, works on different devices, comes at an affordable price, etc. Companies like My Payment Savvy offers a different range of payment processing solutions that meets the need for small, medium, as well as large organizations. Right processing solution optimizes and improves your payment processing experience by integrating a fully custom solution for your business. The reputation of the payment processor should also be taken into consideration before signing up to their proposed plan. We have listed a few things that you should consider before choosing a payment processor.

     1. Security of the Payment Processor

Scammers can cause immense damage to online merchants. The customer’s loss of confidence weighs more heavily than the purely economic loss. Because a damaged reputation is difficult to restore. It is therefore suggested to choose payment processors for your company which has sophisticated fraud detection tool. An ideal payment processor subjects each online payment to a series of security checks, without interruptions or delays in the payment process. It constantly analyzes fraud patterns, thereby contributing to a steady improvement in fraud detection. Your payment should be able to take advantage of the latest security tools like end-to-end encryption, tokenization, etc.

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     2. Payment Processing Fee

For smaller online shops, offering contactless credit card machine payments is not always advantageous, as in addition to a monthly fee, fees per booking, transaction fee, and several other fees associated with it.  The actual costs may differ significantly depending on the payment processor you choose for your company. These costs can significantly decrease your profit. As such, it is better for you to choose the payment processor that provides nominal rates. Sometimes, attractive rates may have some hidden charges that can affect your balance sheet. It is important to pay attention to the factors like the fee for missing minimum monthly quotas, penalties for early termination, reimbursement fee, etc. It is sensible to pay extra fees if your payment processor can guarantee data protection and is equipped with the latest fraud management tools.

     3. Expected transactions per month in quantity and amount

Several payment processors provide pricing based on transaction frequency and amount. You should choose the package that fits your business because you may have to pay extra charges if you miss or exceed the transaction limit you signed up for. Payment processors which can quickly adjust according to the need of your organization or as the organization grows will be an ideal choice. It’s better to review your pricing quarterly or biannually with the manager to determine if there is an opportunity to reduce the cost.

     4. The complexity of Integration and Activation

The activation of new means of payment includes risks related to technical integration and great complexity. This is especially true if each payment method requires either a new API or a new payment service provider. To reduce the risks and complexity associated with technical integration, some payment processors enables all payment methods (cards and other) via a single API. This means that businesses can code all their payment methods using a single infrastructure. When adding a new payment method, the effort required is light and consistent with the code already in place, sometimes only adding a single line of code. This allows companies to achieve a simple and elegant integration that requires little development time and easy to maintain, regardless of the means of payment chosen.

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     5. Acceptance of international payments

When you open an e-shop, you do not necessarily have a clear vision of its evolution. It is possible that your activity extends internationally. Therefore, the chosen payment solution must offer real flexibility of use and correspond to the consumption habits of foreign Internet users. Some payment processor operates only within a country, and charge high exchange rate for purchase made in other currency than their own. Pay attention to these things while choosing a processor for your company.

     6. Customer Support

Apart from all the services provided by payment processors, look for better customer support. Technical problems occur more frequently and are inevitable in companies that are growing. Any delay in fixing these problems can have a bad influence on the goodwill of the company. The right processor doesn’t sell and forget their client but rather provide 24×7 customer support. It is okay if your processor replies via email for minor error but it’s better if they are at a reachable distance.

These few criteria, as well as a small glance at the choices made by potential competitors,  can help you find the right payment processor for your company.