What To Consider When Choosing A Payment Processing Service?
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 with you. Seeping upwards, it ultimately affects sales and conversions.
The best merchant services are those who align with your business model and offer you flexibility of options. Your needs will differ depending on whether you run 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 you with a unique identification number and charges you 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 you should look for in a payment processor:
1. 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.
2. 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.
3. Compatibility
An efficient payment processor must be compatible with the software and hardware coordinating payments for your business. It should work in sync with the infrastructure you have already put in place for your business.
4. Multiple Payment Gateways
Relying on a single mode of payment is suicide as it can get busy and your customers may also opt for other modes of payment. This builds faith for your business in the customer’s mind.
5. Average Transaction Amount & Frequency
Payment processors offer tiered pricing systems depending upon the amount of transaction and frequency. However, if you miss or exceed these limits you’ll have to pay extra.
6. Setup & Maintenance Fee
Setup, hardware and software, training, maintenance etc. can add up and cost a lot. Buggy systems and frequent downtimes can hurt your business. Think of all this in advance.
