A business can thrive or decline depending on the type of payment processor that is used. Before settling on a particular payment gateway, you have to ensure that it presents a secure way of requesting payments from your clients. Selecting the right gateway will require a merchant to carry out some background research about the payment processor since it can be hard to tell which company is the most convenient. This is certainly the case considering the numerous options on the market currently. This having been said, here are the top three things to look for in a payment processor.
1. Fees and Pricing Tier
The majority of payment gateway companies are attractive in that they offer low fees and people quickly rush to them without checking whether the company has hidden fees or not. Companies may charge differently depending on a transaction or even by the type of card that is used to make payments. For instance, credit card payment processors charge a higher rate for non-qualified cards compared to qualified cards. The higher rates are because customers get rewards for the purchases they make. It is, therefore, necessary to go through a payment processor’s website and get updated on the fees charged. Some companies charge either per transaction or monthly while others charge fees for every transaction and still charge at the end of the month. It’s better to target payment processing companies that offer minimal fees while still being reliable in terms of service quality.
2. Flexibility of Payment
Customers may have particular and preferred modes of payments. When choosing a payment processor, it is advisable to ensure that you consider the purchasing needs of your clients. Choosing a payment gateway that offers a variety of payment options can significantly boost your business. You can also choose to have an option for a payment plan for your clients. A payment plan would be letting customers pay for a particular product or service within a certain time period. With some of the best payment processors, you can even allow your clients to make payments in bitcoins or any other cryptocurrency.
3. Fraud protection
Cases of fraud have increased over the past few years. A merchant in a store may find it difficult to tell whether the client using a card to pay for goods is the owner of the card or not if they do not have a payment processor that efficiently identifies fraudulent activities. Fraudulent acts can destroy a business. In some cases, customers may claim that they didn’t receive their purchases while in fact, they had. You can have your fraud protection system in place; it is costly both to install and to maintain. To maximize profits, you should ensure that the company has security policies in place to protect you from being linked to fraudulent activities. The plans should also ensure that the entire process adheres to the PCI requirements.
Choosing the right payment gateway adds a competitive edge to a merchant. The effectiveness and efficiency of the payment process play a critical role in the entire process. Before rushing to select one, be sure to verify that the payment processor is affordable in terms of their fees and that they don’t have any hidden charges. Do not forget about the fraud protection policies and flexibility of their payment options.
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