If you intend to run an eCommerce website, one of the most important decisions you’ll have to make is selecting your payment processor. Payment processing gives your customers the option to pay by debit or credit card, authorizes their payments, and manages them for your store. As a result, payment processing is an essential part of doing business online. The big question here is: which payment processor should you choose? To answer that, let’s go over four key factors you need to consider.
1. Processing Costs
When deciding between various payment processors, it’s tempting to opt for the one offering the lowest prices. However, these costs go beyond the monthly fee. They also include:
• Interchange: The fee charged by your customer’s bank
• Markup: The percentage charged by the merchant bank
• Processing: The transaction fee charged by the payment processor
• Assessment: The pre-negotiated percentage charged by the credit card association
Before choosing your processor, keep all of the above fees in mind. Then, base your decision on the value and volume of your transactions. For instance, if you’re processing many high-value transactions, opt for a processor that charges a low transaction fee.
2. Customer Service
Between POS terminals, credit card software, and transfers of funds, payment processing contains a lot of moving parts. It’s reasonable to assume that some things may go wrong.
If that happens, you’ll want a good customer service team on your side. They need to be accessible, friendly, and helpful. For every payment processor you consider, check their reviews and testimonials to find out more about their customer support. You can test them out as well – find out how easy it is to get in touch with them and how efficient their service is.
3. Payment Options
Many people don’t have a credit card or don’t want to use it online. In this situation, having the option of bank or debit transfer will increase the chance of them completing an order.
This is why you should find a payment processor that lets you pick the types of services you can offer to your customers without any restrictions. By providing multiple payment options, you allow every customer to find one that matches their preference. Having several payment options also helps you extend your reach and provides a boost to your customer interactions.
4. Future-Proofing
Credit card processing is a fast-changing industry. Over the following five years, there’s a good chance you’ll need to adapt your payment methods to create a better customer experience.
For example, let’s say you have the standard in-store payment experience where customers pay at the counter. In the near future, you may want to incorporate online shopping, curbside pickup, telephone orders, and more. A good payment processor will allow you to stay current with new technologies while keeping the payment processes simple for your staff.