- June 30, 2020
-- Running a business these days is synonymous with being able to receive and process payments. A robust payment processing
system makes transaction of funds simpler, secure and efficient. It is not just about processing funds but it adds value to the business and also makes it easier for several customers who opt for alternate modes of payments to do business. Seeping upwards, it ultimately affects sales and conversions.
The best merchant services
are those who align with an established business model and offers the most flexibility in options. A business' needs will differ depending on whether it is a small, medium or large business. Merchant services that reduce chargebacks and offer ancillary services like ACH network and an eCheck service are better than a straight-on payment service provider (PSP). eCheck
has become fairly popular among high-risk, small and newly started businesses.
A merchant service provider furnishes businesses with a unique identification number and charges a monthly fee besides other fees like cost per transaction, chargebacks etc. As a business owner, one must be extra careful when choosing a payment processor.
Here's what one should look for in a payment processor:
- PCI-DSS Compliance
Payment Card Industry- Digital Security Standards is a security compliance that must be met by a processor. It is vital from a security point of view. Without these compliance a processor may be considered unaccredited and unreliable.
- Fraud Prevention
Whenever there is money involved, nefarious activities will always creep in. To avoid stealing of data or payment frauds, a fraud protection system must be integrated in the payment processing service.
An efficient payment processor must be compatible with the software and hardware coordinating payments for a business. It should work in sync with the infrastructure already put in place for the business.
- Multiple Payment Gateways
Relying on a single mode of payment is suicide as it can get busy and customers may also opt for other modes of payment. This builds faith in a business in the customer's mind.
- Average Transaction Amount & Frequency
Payment processors offer tiered pricing systems depending upon the amount of transaction and frequency. However, if one misses or exceeds these limits they'll have to pay extra.
- Setup & Maintenance Fee
Setup, hardware and software, training, maintenance etc. can add up and cost a lot. Buggy systems and frequent downtimes can hurt business. Think of all this in advance.