The Most Common Reasons for Changing a Payment Gateway

There are numerous market players who can provide you with better payment solutions, higher conversion rates, or a broader set of features. So maybe it's time to look for a new payment provider.

Not all digital payments are created equal. Consider how a new payment solution will affect your customers and your bottom line before making the switch. Before making any decision, do the math and consider whether your current provider meets all of your business needs. The most common reasons for switching payment processors are listed below.

Technology

When it comes to payments, technology must always be available when needed. When your current payment provider experiences frequent outages, your business suffers as a result of unplanned outages. Problems with payment gateway processing can cost you money and customers. Every second lost is a loss for your company.

Sign up for the provider's test environment before deciding to work with them to ensure that their system goes above and beyond technology. Look for scalability and dependability, as well as a solution that includes integration and technology that will give you more control over your payments.

Badly designed UX

Because the checkout process is the most important part of the selling process, the payment flow must be carefully designed. It is critical that users pay directly on your website or in-app rather than being redirected to an external service. When a payment provider offers an out-of-date system, your best bet is to switch to a more dependable option.

Terminated merchant account

Merchant accounts can be terminated for a variety of reasons, including an unsupported business model. Termination can be aggravating, especially if your company was accepted by the payment provider and then abruptly terminated without explanation after several weeks or months of payment processing. As a result, we recommend that you always inquire about the provider's supported business models and countries before applying for a merchant account through a PSP's website. This will save you a lot of time and trouble.

Low conversion rates

When your website's conversion rate is too low, it is most likely due to a poorly designed and overly long checkout process that includes user redirections and distractions. If you're thinking about switching payment gateways, make sure your new provider provides a solution with an excellent user experience, adheres to current industry standards, and provides conversion-friendly features like one-click payment or cross-selling.

Ineffective or lack of fraud protection

Because fraud is an unavoidable part of online payments, make sure the online payment gateway you want to use uses encryption and tokenization services. They should also be PCI Level 1 compliant and provide a suite of fraud prevention tools and multilayered protection. An effective anti-fraud solution will save you both time and money.

If you believe your payment provider isn't providing adequate security, it's time to switch. Data security, particularly when it comes to payments, is critical and has a significant impact on your bottom line and the reputation of your company.

Your needs are not met

Needs change all the time, especially when your business is expanding. What if your current processor is unable to support your growth goals or is unable to keep up with your transaction volume? If your provider is unable to meet the new requirements, consider switching payment gateways.

Sometimes you don't have to switch to a different solution right away. You might only need a second provider to help you with these new, complex requirements. Look for a service provider that can help your company grow as it grows. Perhaps you require some specialized features to improve your business processes.

If you are unsure whether another payment provider will meet your business needs, consider having both solutions on your site and analyzing your business results over a period of several months. You'll then be able to see which solution is best for your company, making it easier to make a final decision.

However, keep in mind that collaborating with multiple payment providers can result in bottlenecks. You must sign multiple contracts, manage multiple accounts, contact various sales representatives, or dilute your margins.

Questionable fee transparency

Are you certain you're not paying more than necessary? When comparing plans and pricing, make sure the payment processor's website displays all fees so you know exactly what you're paying for. Additional fees can add up over time, making some providers appear to be more expensive than they are.

Some solutions charge a transactional fee for each completed payment, while others charge monthly fees or use a combination of transactional and monthly fees. Do the math and you'll see that paying a large sum of money every month or year can end up costing you much more than paying a percentage of each transaction. What appears to be less expensive at first glance may turn out to be much more expensive in the end.

Also, keep in mind that advanced technology is expensive, so you will pay a premium, but you will also get better value. Make calculations to determine whether the new bells and whistles will benefit your business more. Consider whether the price is more important than the added value (such as user-friendly checkout, highly effective anti-fraud solutions, or conversion-boosting features). Remember that the savings you can realize by switching providers should be substantial enough to justify the switch.

Poor support

When running an online business and accepting payments through your website, you must work with a payment gateway that provides quick support. It's about money, so any issue must be resolved as soon as possible. The last thing you want is to lose customers due to ineffective payment provider assistance.

Wrapping up

When a company grows in size, its business needs change, and the services provided by an outdated payment gateway will no longer suffice. Rethink your payment provider and look for one who will be a business partner who speaks the same language as you and will allow your company to grow in the way that you require.

Switching payment gateways shouldn't be difficult, and it shouldn't disrupt your site's payment process. If you choose wisely, your new payment partner will guide you through the transition and ensure that it is smooth, without any bumps, and that every single transaction is kept in place.