One aspect of running a business, whether as a brick-and-mortar outlet or through an online digital-only entity, is how you handle payments and with whom you partner to process them.
While this isn’t something all businesses need to worry about, many online platforms include payment handling options as standard. For companies building a website specifically for their business or not relying on services like Shopify, finding the right payment processor is crucial.
If you’re unsure about how to begin or what to consider when selecting a payment processor, these tips can provide guidance.
Payment Options
Understanding the types of payments you can receive via the providers you’re considering or are available to you is crucial. The most common methods of payment are currently credit and debit cards, mobile wallets, buy now, pay later and ACH transfers. By choosing a provider who can accommodate all primary payment methods or more if applicable, you are not limiting your customer base by restricting payment options. This knowledge empowers you to make informed decisions about your business’s payment processing.
Fee Structures
Understanding fee structures is essential, as they determine how much the company takes from your payments for handling your transactions. There could be fees, including monthly fees, transaction fees, set-up costs and chargeback fees. These fees can add up, even if they seem minimal. Ensuring that the fee schedules you commit to align with your budget and projected sales volumes is crucial. This financial security enables you to generate a profit still or minimise the impact on your pricing structures.
At this point, it’s a good idea to understand how or if the provider deals with businesses in your sector, as some industries are considered higher risk and come with higher fees or charges for simply existing. For example, you want a payment processor that can handle sports betting payment methods without overcharging you or a company who is knowledgeable about the adult entertainment industry, as both of these are seen as riskier than other operations and can come with higher charges, especially for chargebacks.
Security
Security is a non-negotiable for customers in this day and age, and you want to dig deep to ensure the company you partner with is using only the strictest security protocols possible. You need to verify security compliance and ensure they meet industry standards, such as PCI DSS, which protects sensitive financial information from landing in the wrong hands.
Customer Service and Support
Investigating the level of customer service and support is always worth it. In the event you have any issues or queries, having reliable support is crucial. Does the company operate when you do so you can get help when you need it, or are you running in a different time zone? Reading reviews, checking Trustpilot, and asking questions can help you gauge the response times of their customer service prior to signing up. This reassurance will give you a better idea of what to expect when you become their customer, knowing that you can get immediate help when required.
