Every business needs a payment processor to process electronic payments for you. For small businesses and independent traders, there are plenty of options out there. However, as a business grows and needs to process more payments, it will require a dedicated service.
Here are four key things to consider when choosing the right payment processor for your business.
Check Their Fees and Policies
Different payment processors will charge different fees, and it is important to understand exactly what these are before you get anywhere near to making your decision. It shouldn’t be difficult to find the information that you need on the payment processor’s website. There are a number of different fees that might be applied to a transaction and they are normally bundled together into a single cost for businesses.
One thing to watch out for is a payment processor who appears to be offering a deal that looks too good to be true. If this is the case, then it is probably true. Some unscrupulous payment processors have been known to hide fees from their users, leading to nasty surprises down the line.
Check Their Security Reputation
It is important for both you and your customers that you fully trust the payment processor that you use. If you will be accepting credit and debit card payments, as most businesses will be, then you need to ensure that your provider is PCI compliant.
You should thoroughly investigate any payment processor through online reviews. These are often a great source of information, especially where security is concerned. If there are any glaring holes in a payment processor’s security, it will no doubt be flagged by the online community.
Choose a Processor That Fits a Business of Your Size
Most payment processors will offer tiered pricing for their services. These tiers are generally based on average transaction values and the frequency with which transactions are processed by your business. This can all be a little bit difficult to get your head around at first, but it is important that you choose a package suitable for a business of your current status.
Of course, you should also factor in the future growth of your business. The payment processor who you use now may not be the same one that you find yourself within a couple of years. Look for a payment processor who is flexible when it comes to scaling up your package.
Check Out What is Involved in Getting Set Up
Fortunately, most payment processors make it really easy to get everything set up. However, it can be a bit confusing as to exactly what costs will be involved. In some cases, there may be relatively high hardware and software costs that you need to cover, and this is something that you will have to factor into your decision making.
it is also important to remember that there will be ongoing maintenance costs with many payment processors. For example, if you run into trouble and need to troubleshoot the issue then any downtime for your business represents lost revenue.
We strongly recommend that you have a look online for other customers’ experiences using a processor and pay particular attention to any information about the quality of their customer support service.
Choosing the right payment processor can make an enormous difference to your customers’ experience, as well as your own ease of operations. Choosing an inappropriate processor can ultimately incur significant costs, so make sure you take this decision seriously.
Payment processing is a tricky legal space that has gathered a lot more attention in the recent years.